The Tel-Aviv Stock Exchange (TASE) Q3 2021 earnings summary

Executive summary

• Q3'21 revenue rose 4% YoY to NIS 74.968M; reported net profit increased 79% to NIS 9.635M, while adjusted EBITDA rose 18% to NIS 22.755M and adjusted net profit rose 74% to NIS 9.771M.

• For 9M 2021, revenue increased 5% to NIS 237.9M, net profit rose 22% to NIS 31.4M, and adjusted EBITDA grew 6% to NIS 73.5M.

• At September 30, 2021, capital surplus was NIS 299.483M and liquidity surplus was NIS 144.471M.

Financial highlights

• Q3 expenses were NIS 64.433M, up 1% YoY; profit before financing income increased 32% to NIS 10.535M.

• Q3 adjusted EBITDA was NIS 22.755M, up 18%, and adjusted net profit was NIS 9.771M, up 74%; both exclude share-based payment expenses.

• Q3 diluted EPS was NIS 0.092, up 78% YoY; 9M diluted EPS was NIS 0.301, up 20%.

• 9M costs increased 5% to NIS 200.5M; profit before financing income rose 6% to NIS 37.4M.

• Q3 adjusted EBITDA margin rose to 30.4% from 26.8%, and adjusted net profit margin to 13.0% from 7.8%; 9M margins were 30.9% and 13.4%, versus 30.5% and 11.8%.

Outlook and guidance

• Management expected no material adverse activity impact from a foreseeable rise in morbidity rates, conditional on the Government maintaining regular market activity.

• Government bond listing-fee income recognition is NIS 3.2M annually in 2021–2025 and NIS 2.1M annually in 2026–2031 under the revised agreement.

• A provident-fund law change effective July 2022 could redirect pension investments toward listed securities and increase government bond issuance; outcomes depend on implementation and investment choices.