- Revenue of the GPW Group was PLN 110.7 million in Q2 2023 (+11.7% YoY) and PLN 222.9 million in H1 2023 (+6.5% YoY), the best 6M revenue in the GPW Group’s history
- Revenue of new business lines (Armenia Securities Exchange, GPW Logistics, GPW Tech) at PLN 10.5 million in Q2 2023
- EBITDA at PLN 44.0 million in Q2 2023 (-5.9% YoY) and PLN 78.9 million in H1 2023 (-19.1% YoY)
- Net profit attributable to the owners of the parent entity at PLN 45.0 million in Q2 2023 (+18.2% YoY) and PLN 71.6 million in H1 2023 (-6.0% YoY)
- The GPW Group’s new development strategy for 2023-2027 was published in Q2 2023
- Dividend paid at PLN 113.3 million (PLN 2.70 per share), dividend yield at 6.7%
The Warsaw Stock Exchange Group (GPW Group) generated revenues of PLN 222.9 million in H1 2023, its EBITDA was PLN 78.9 million, operating profit PLN 62.2 million, and net profit attributable to the owners of the parent entity PLN 71.6 million. The decrease in net profit by 6.0% YoY was due to higher operating expenses in connection with the development of new business initiatives, as well as inflation pressures.
“Consolidated revenues in H1 2023 increased by 6.5 percent year on year, representing the highest six-month revenue in the history of the GPW Group. We are delighted that our revenue is growing steadily, especially that the growth is mainly driven by revenue from our new business lines: Armenia Securities Exchange (AMX), GPW Logistics and GPW Tech, which totalled PLN 20.0 million in H1 2023. This is also a result of our previous strategy which focused on diversification and new business segments. In 2023-2027, we plan to continue these efforts on a par with the transformation of the operating model to increase cost efficiency," said Adam Młodkowski, Member of the GPW Management Board.
In Q2 2023, the GPW Group’s sales revenue was PLN 110.7 million, its EBITDA was PLN 44.0 million, operating profit PLN 35.6 million, and net profit attributable to the owners of the parent entity PLN 45.0 million. Consolidated revenue increased by 11.7% year on year in Q2 2023. The increase was driven by revenue from new business lines (totalling PLN 10.4 million in Q2 2023) and higher revenue on the financial market combined with stable revenue from the commodity market.
Revenue from the financial market increased by PLN 2.5 million (+4.3% YoY) in Q2 2023, mainly driven by an increase in revenue from trading in equities and equity-related instruments by PLN 2.6 million. Revenue from information services on the financial market increased to PLN 15.0 million (+2.1% YoY).
Revenue of the Group from the commodity market increased by PLN 0.3 million in Q2 2023 (+0.6% YoY). Revenue from trading in electricity increased by PLN 3.2 million (+93.0% YoY), revenue from clearing by PLN 0.4 million (+3.8% YoY), and revenue from other fees paid by market participants by PLN 0.5 million (+9.9% YoY). Revenue from trading in property rights decreased by PLN 2.0 million (-22.0% YoY) and revenue from the operation of the register of certificates of origin by PLN 2.0 million (-23.1% YoY).
Operating expenses increased by 20.0% year on year to PLN 75.0 million in Q2 2023. The increase was driven by higher external service charges (+43.0% YoY) and salaries and other employee costs (+18.8% YoY).
The GPW Group’s new development strategy for 2023-2027 was published in Q2 2023. The strategy is based on three growth pillars: trading, data and technology, and new business models. In 2023-2027, the GPW Group plans to generate average annual revenue of PLN 498 million and an average annual EBITDA of PLN 215 million.
In August, GPW paid a dividend of PLN 113.3 million (PLN 2.70 per share) to the shareholders, representing 97.1% of the GPW Group’s consolidated net profit for 2022 attributable to GPW shareholders adjusted for share of associates. The dividend yield at the closing price on the dividend record date was 6.7%.
Presentation of the financial results of the GPW Group for Q2 2023
Net profit
Net profit attributable to the owners of the parent entity of the GPW Group was PLN 45.0 million in Q2 2023, an increase of 18.2% year on year. The increase of the GPW Group’s net profit was driven by a high net financial income at a positive PLN 9.8 million vs. a positive PLN 1.9 million in Q2 2022. The GPW Group’s net profit was supported by a record-high share of profit of entities measured by the equity method at PLN 9.1 million vs. PLN 7.8 million in Q2 2022.
Revenue from the financial market
The sales revenue from the financial market stood at PLN 61.1 million in Q2 2023 vs. PLN 58.6 million in Q2 2022 and PLN 66.5 million in Q1 2023. The revenue from the financial market contributed 55.2% of the total sales revenue of the GPW Group in Q2 2023.
The revenue from the financial market includes trading revenue, listing revenue, and revenue from information services.
- Trading revenue on the financial market
The trading revenue on the financial market stood at PLN 39.2 million in Q2 2023 vs. PLN 38.4 million in Q2 2022 and PLN 44.4 million in Q1 2023.
The year-on-year increase in the trading revenue on the financial market was driven by higher revenue from trading in equities (PLN 30.6 million, +9.3% YoY). The Electronic Order Book turnover on the GPW Main Market in Q2 2023 stood at PLN 64.6 billion, a decrease of 0.4% year on year. Average daily turnover increased by 4.9% year on year to PLN 1.13 billion. Investor activity in the stock market in Q2 2023 remained significantly higher than the in comparable quarters in the years preceding the pandemic. - Listing revenue
The GPW Group’s listing revenue on the financial market was PLN 6.1 million in Q2 2023 vs. PLN 5.6 million in Q2 2022 and PLN 6.3 million in Q1 2023. Listing revenue includes annual listing fees, introduction fees and other charges. Revenues therefore mainly depend on IPO/SPO activity, the number of issuers and the capitalisation of companies.
Three companies were newly listed on the GPW Main Market in Q2 2023 (transfers from NewConnect) and four companies were newly listed on NewConnect. The total value of IPOs and SPOs on both markets amounted to PLN 747 million vs. PLN 6,932 million in Q2 2022. The combined capitalisation of domestic and foreign companies listed on both GPW stock markets amounted to PLN 1,335.9 billion as at 30 June 2023 vs. PLN 1,108.5 billion as at 30 June 2022. - Information services
The revenue from information services on the financial market was record-high at PLN 15.0 million in Q2 2023 vs. PLN 14.6 million in Q2 2022 and PLN 14.8 million in Q1 2023.
GPW had 573,600 data subscribers as at 30 June 2023 vs. 529,000 as at 30 June 2022.
Revenue from the commodity market
The sales revenue on the commodity market was PLN 39.7 million in Q2 2023, an increase of 0.6% year on year and a decrease of 4.0% quarter on quarter. It contributed 35.9% of the Group’s total revenues in Q2 2023. The revenue from the commodity market includes trading revenue, revenue from operation of the register of certificates of origin, revenue from clearing, and revenue from information services.
- Trading revenue on the commodity market
The trading revenue on the commodity market stood at PLN 21.4 million in Q2 2023, an increase of 8.9% year on year and 5.1% quarter on quarter.
The revenue from trade in electricity was PLN 6.6 million in Q2 2023 vs. PLN 3.4 million in Q2 2022 and PLN 5.7 million in Q1 2023.
The revenue from trade in gas stood at PLN 2.6 million, an increase of 3.4% year on year and a decrease of 38.5% quarter on quarter.
The revenue from trade in property rights stood at PLN 7.0 million in Q2 2023, representing a decrease of 22.0% year on year and an increase of 36.0% quarter on quarter.
The Group’s revenue from other fees paid by commodity market participants stood at PLN 5.2 million in Q2 2023, an increase of 9.9% year on year and a decrease of 2.1% quarter on quarter. - Operation of the Register of Certificates of Origin
The revenue from the operation of the Register of Certificates of Origin was PLN 6.6 million in Q2 2023, representing a decrease of 23.1% year on year and a decrease of 5.3% quarter on quarter. - Clearing
The revenue from clearing was PLN 11.4 million in Q2 2023, an increase of 3.8% year on year and a decrease of 17.1% quarter on quarter. The revenue from clearing depends on the volume of trading on the markets operated by TGE. - TGE Group information services
The revenue from information services stood at PLN 375,000 in Q2 2023, an increase of 13.0% year on year and an increase of 5.3% quarter on quarter.
New business lines
The GPW Group’s new business lines (AMX Group, GPW Logistics, GPW Tech) generated combined revenue of PLN 10.5 million in Q2 2023.
Operating expenses
The GPW Group’s operating expenses stood at PLN 75.0 million in Q2 2023 vs. PLN 62.5 million in Q2 2022, representing an increase of 20.0% year on year and a decrease of 12.9% quarter on quarter. Salaries and other employee costs stood at PLN 32.9 million in Q2 2023 vs. PLN 27.7 million in Q2 2022, an increase of PLN 5.2 million year on year (+18.8 %) and a decrease of PLN 1.4 million quarter on quarter (-4.0%). The increase was driven by an increase of salaries in H2 2022 and an increase in FTEs, in particular in GPW, necessary to implement strategic initiatives. External service charges stood at PLN 28.9 million in Q2 2023 vs. PLN 20.2 million in Q2 2022, an increase of PLN 8.7 million year on year (+43.0%). The year-on-year increase was driven by an increase of total IT expenses (PLN 11.2 million vs. PLN 10.6 million), an increase in advisory costs (PLN 7.0 million vs. PLN 3.6 million) and an increase in the costs of consolidation of GPW Logistics (PLN 3.4 million). The GPW Group’s external service charges increased by 25.3% quarter on quarter in Q2 2023. Other operating expenses stood at PLN 3.2 million, an increase of 60.7% year on year and an increase of 17.2% quarter on quarter.
Share of profit of entities measured by the equity method
The GPW Group’s share of profit of entities measured by the equity method was historically high and stood at PLN 9.1 million in Q2 2023 vs. PLN 7.8 million in Q2 2022. The share of profit of entities measured by the equity method is mainly driven by profits of the KDPW Group. The profit of the KDPW Group attributable to GPW was PLN 9.1 million vs. PLN 7.5 million in Q2 2022. The share of profit of Centrum Giełdowe was PLN 43,000 vs. a share of profit at PLN 297,000 in Q2 2022.
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The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and provides indices and benchmarks including WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. For more information, visit www.gpw.pl.
