The Tel-Aviv Stock Exchange (TASE) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 performance with 13% revenue growth and 29% increase in adjusted EBITDA year-over-year, driven by higher data distribution, connectivity services, and updated index-usage fees, despite the ongoing October 7 war.

• All core activities showed organic growth, with resilience demonstrated in volatile market conditions and robust activity across shares, bonds, derivatives, and mutual funds.

• Non-transactional revenues, including data distribution and connectivity services, contributed significantly to overall growth.

• Strategic initiatives included expanding international activity, launching new indices, and onboarding new brokerage members.

• Profitability and operational metrics improved significantly despite fewer trading days.

Financial highlights

• Q2 2024 revenue reached NIS 105.1 million, up 13% year-over-year; adjusted EBITDA rose 29% to NIS 45.8 million; adjusted net profit increased 26% to NIS 25.7 million.

• H1 2024 revenue totaled NIS 213.4 million, up 11% year-over-year; adjusted net profit for H1 was NIS 53.5 million, up 15%.

• Basic EPS for Q2 2024 was NIS 0.263, up 38% year-over-year; H1 2024 EPS was NIS 0.541, up 21%.

• Adjusted EBITDA margin for Q2 2024 was 43.6%; adjusted net profit margin was 24.4%.

• Net financing income decreased 45% in Q2 2024 due to higher interest expenses from a new loan.

Outlook and guidance

• Marketing expenses expected to rise in H2 2024, but remain within budget; no changes anticipated in overall expense outlook.

• Dividend policy for 2024–2026 targets distribution of 50% of annual net profit, subject to board approval and regulatory requirements.

• Continued focus on expanding product offerings, digital platforms, and international alignment.

• Management highlighted continued growth in trading volumes, capital raising, and non-transactional services, supporting a positive outlook.

• Macroeconomic uncertainty remains high due to the ongoing "Swords of Iron" war, with potential impacts on trading volumes, capital raising, and profitability.