A Month after the Sale of TASE Shares was Approved by the Israel Securities Authority and the TASE Ownership was Restructured, TASE Publishes Interim Financial Results for the First Time Covering H1 2018

Press Release
20/09/2018
 

​TASE is Reporting a Significant Improvement in its Operating Activities. TASE’s Net Profit, Excluding the Reversal of the Impairment Provision for the TASE Building, Amounted to NIS 12.9 Million, a 123% Jump Compared to H1 2017. The Total Net Profit for H1 2018 Amounted to NIS 78.5 Million;

H1 2018 Revenues Amounted to NIS 128.4 Million, Compared to NIS 123.1 Million for H1 2017, a 4% Increase;

Excluding the Reversal of the Impairment Provision, Expenses Fell by 6% Compared to the Corresponding Period Last Year;

Operating Profit, Before Depreciation and One-Time Income/Expenses, Amounted to NIS 32.8 Million, a 56% Increase compared to the Corresponding Period Last Year

Today (September 20, 2018), the Tel-Aviv Stock Exchange (TASE) is publishing its financial results for the first half of 2018.

Net profit for the first half (H1) of 2018 amounted to NIS 78.5 million. Excluding the reversal of the impairment provision for the TASE building (net of tax) in an amount of NIS 65.5 million, the profit for the period amounted to NIS 12.9 million, a 123% jump compared to the corresponding period last year, when the net profit amounted to only NIS 5.8 million.

H1 2018 revenues amounted to NIS 128.4 million, compared to NIS 123.1 million for H1 2017. The increase in revenues is mainly due to implementing the strategic plan, inter alia, the establishment of the TASE Nominee Company which has contributed to the revenue increase and to cost savings.

Excluding the reversal of the impairment provision, TASE’s H1 2018 expenses amounted to NIS 95.6 million, a 6% reduction compared to the expenses for the corresponding period last year that amounted to NIS 102.1 million. The fall in operating expenses is mainly due to net payroll expenses that fell from NIS 69 million in H1 2017 to NIS 63.8 million in H1 2018. In addition, other operating expenses fell by NIS 2.4 million compared to the corresponding period last year

H1 2018 operating profit, before depreciation, one-time income/expenses and the reversal of the impairment provision for the TASE building, amounted to NIS 32.8 million, a 56% increase on the operating profit of NIS 21 million for the corresponding period last year.

TASE continues to implement its strategic plan and made investments during H1 2018 amounting to NIS 29 million, compared to NIS 9 million in the corresponding period last year. This reflects the surge in infrastructure development and the expansion in TASE’s basket of services to which numerous additional services have been added during H1 2018 or are expected to be added during the coming year, including: a colocation service, development of a central securities lending system (based on blockchain technology), development of a straight-to-the-public issuances board system and development of an ETF trading infrastructure, trade on which is expected to commence in October.

In light of the implementation of the strategic plan and the improvement in its business results, TASE’s H1 2018 financial statements include the reversal of the impairment provision for the TASE building, basing its decision to do this on an evaluation of its operations performed by an independent valuator.

The total of public issuances of shares made in H1 2018 amounted to NIS 4.6 billion, compared to NIS 5.3 billion in the corresponding period last year. Nevertheless, the wave of IPOs that began in 2017has continued during H1 2018 and, as a result, nine new companies have joined TASE, raising NIS 1.7 billion between them. Among the most noteworthy of these new issuances were Fattal Holdings Group, which raised NIS 507 million from the public at a market cap of NIS 4.4 billion (making it the largest company to have made a share issuance on TASE in the last eight years), and IBI Elite Technology Fund, the first high-tech fund on TASE, which raised NIS 403 million.

Debt issuances made by TASE companies raised a total of NIS 31.5 billion in H1 2018. This follows the NIS 67 billion raised in 2017. Some 70% of the debt raised by the real (non-financial) sector in recent years is intended to fund the redemption of traded bonds, while the remaining 30% is intended to fund operating activities and to expand company operations.

Average equity trading turnovers (in on- and off-exchange trades, including ETNs on the equity market) amounted to NIS 1.433 billion per day – a rise on the average turnover for the whole of 2017 that amounted to NIS 1.404 billion per day.

The daily trading turnover in ETNs on equity indices averaged NIS 300 million in H1 2018, the same as the average trading turnover in 2017. The trading turnover of these ETNs as a percentage of the total equities turnover remained unchanged in H1 2018 at 21%, the same as the average in 2017. The average daily trading turnover in ETNs on bond indices also remained unchanged at NIS 133 million in H1 2018, the same as the average daily trading turnover in 2017.

Link to the full financial statements >