The Tel-Aviv Stock Exchange (TASE) Q1 2022 earnings summary

Executive summary

• Q1'22 revenue rose 25% YoY to NIS 97.676M; reported net profit increased 52% to NIS 14.719M, while adjusted net profit and adjusted EBITDA each grew 50% to NIS 14.850M and NIS 36.849M.

• Higher activity and revised listing-fee recognition supported growth, partly offset by higher expenses and lower bond turnover and issuance.

Financial highlights

• Revenue was NIS 97.676M versus NIS 78.370M; reported expenses rose 12% to NIS 73.406M.

• Profit before financing income and expenses increased 91% to NIS 24.270M; reported net profit was NIS 14.719M versus NIS 9.661M.

• Adjusted EBITDA was NIS 36.849M versus NIS 24.556M; adjusted net profit was NIS 14.850M versus NIS 9.894M. Both exclude share-based payment expenses.

• Net financing expense was NIS 5.207M versus NIS 0.134M of net financing income, reflecting a 2.45% negative return on marketable-securities portfolios.

Outlook and guidance

• Revised estimates set revenue-recognition periods at 12 years for initial share listings and ETFs/ETNs, and 6 years for secondary share offerings.

• Portfolio value declined NIS 2.6M from April 1 to May 15; absent a further change by June 30, the decline was expected to be recorded as Q2 financing expense.

• New strategic-plan formulation was expected to be delayed amid uncertainty around digital-asset regulation and shareholder restructuring proceeds; potential complementary investments, including fintech, were under review.