The Tel-Aviv Stock Exchange (TASE) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record results with revenue up 14% year-over-year, adjusted EBITDA up 17%, and net profit up 43%, despite ongoing regional conflict.

• Adjusted net profit for Q3 was NIS 27.2 million, up 35% year-over-year; basic EPS rose 44% to NIS 0.282.

• Israeli capital markets and TASE demonstrated resilience and robust fundamentals throughout 2024.

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

Financial highlights

• Q3 2024 revenue reached NIS 109 million (+14% YoY), the highest since IPO; adjusted EBITDA was NIS 45.1 million (+17% YoY), with margin at 41.4%.

• Net profit for Q3 was NIS 26 million (+43% YoY); adjusted net profit was NIS 27.2 million (+35% YoY).

• For the first nine months of 2024, revenue was NIS 322.4 million (+12% YoY), adjusted EBITDA NIS 139.5 million (+19% YoY), and adjusted net profit NIS 80.7 million (+21% YoY).

• Basic EPS for Q3: NIS 0.282 (+44% YoY); nine-month basic EPS: NIS 0.822 (+27% YoY).

• Net financing income in Q3: NIS 4 million (+103% YoY), mainly from interest and securities gains.

Outlook and guidance

• Additional revenue from updated custody fees expected: NIS 11 million in 2025, NIS 26 million in 2026, and NIS 44 million from 2027 onward, based on current AUM.

• Board approved a dividend policy to distribute 50% of annual net profit for 2024–2026, subject to business needs and regulatory requirements.

• Marketing budget for 2025 expected to be higher than 2023 but not at peak levels; will align with business activity and revenue.

• Management remains confident in continued business growth and margin improvement over the next few years.

• Macroeconomic forecasts anticipate lower GDP growth, prolonged interest rate immobility, and higher inflation due to ongoing regional conflict.