The Tel-Aviv Stock Exchange (TASE) Q2 2021 earnings summary

Executive summary

• Q2'21 revenue rose 15% YoY to NIS 84.592M; adjusted EBITDA increased 25% to NIS 26.227M and adjusted net profit rose 18% to NIS 12.309M.

• H1'21 revenue increased 5% to NIS 163.0M; adjusted EBITDA grew 2% to NIS 50.783M and adjusted net profit rose 6% to NIS 22.203M.

• Listing, clearing-house and data/connectivity growth offset weaker trading commissions; Q2 other revenue included a NIS 3.846M Ministry of Finance settlement.

Financial highlights

• Q2 profit before financing income rose 47% YoY to NIS 14.170M; reported net profit increased 20% to NIS 12.1M, while financing income fell 62% to NIS 1.338M.

• Q2 basic and diluted EPS were NIS 0.119 and NIS 0.115, up 19% YoY on both measures.

• H1 profit before financing income was NIS 26.9M, down 1%; net profit rose 7% to NIS 21.7M. Basic EPS increased 6% to NIS 0.215 and diluted EPS 5% to NIS 0.208.

• Q2 expenses rose 10% to NIS 70.422M; H1 costs rose 7% to NIS 136.1M, mainly reflecting employee benefits, marketing and depreciation expenses.

Outlook and guidance

• Under the government-bond listing agreement, annual income recognition is NIS 3.2M in 2021–2025 and NIS 2.1M in 2026–2031.

• Q3 2021 is scheduled to have 56 trading days versus 62 in Q3 2020; Q4 is scheduled for 65 days versus 66.

• No material adverse effect on activity was expected if the COVID-19 rise was short-term and did not lead to further economic restrictions.