The Tel-Aviv Stock Exchange (TASE) Q3 2020 earnings summary

Executive summary

• Q3'20 revenue rose 9% YoY to NIS 72.030M; adjusted EBITDA rose 14% to NIS 19.338M, while adjusted net profit fell 22% to NIS 5.619M.

• 9M revenue increased 17% to NIS 226.8M; net profit rose 74% to NIS 25.6M and adjusted EBITDA grew 45% to NIS 69.2M.

Financial highlights

• Q3 profit before financing income rose 38% to NIS 7.961M; net profit declined 21% to NIS 5.369M, from NIS 6.8M YoY. Financing income was NIS 0.9M versus NIS 3.1M.

• Q3 adjusted EBITDA margin was 26.8%, versus 25.8% YoY; adjusted net profit margin was 7.8%, versus 11.0%.

• 9M adjusted net profit increased 47% to NIS 26.7M; adjusted EBITDA margin was 30.5%, versus 24.7% in 9M 2019.

• Q3 basic EPS was NIS 0.053 versus NIS 0.068 YoY; diluted EPS was NIS 0.052 versus NIS 0.067.

Segment performance

• Q3 trading and clearing commissions rose 10% to NIS 31.1M, mainly on higher share volumes; listing fees and levies rose 10% to NIS 14.9M.

• Q3 Clearing House services revenue rose 8% to NIS 14.0M, and data and connectivity revenue rose 13% to NIS 11.7M; other revenue fell 62% to NIS 0.4M.

• 9M trading and clearing commissions grew 28% to NIS 103.0M; Clearing House services rose 11% to NIS 42.4M and data/connectivity rose 12% to NIS 35.5M.

• Data and connectivity growth reflected colocation and BSO activities, domestic customers, and business customers paying for data previously distributed free; new Clearing House services also contributed.

• Other revenue declined mainly because the Conference Center shut down in March 2020 amid the coronavirus outbreak.