- GPW Group’s historically highest annual revenue at PLN 327.9 million (+3.3% YoY)
- Net profit up by 10.2% YoY and EBITDA by 9.4% YoY in 2015 despite a demanding market environment
- Strict cost regime in 2015 resulting in a decrease of operating expenses by 4.0% YoY and a reduction of the cost/income ratio to 53.2%
The GPW Group focused on three key areas in 2015: building up liquidity on the Group’s markets, maintaining IPO and SPO activity of issuers, and optimisation initiatives resulting in cost reductions and enhanced operational efficiency. As a result, the GDP Group generated sales revenues of PLN 327.9 million, a net profit of PLN 123.7 million, and EBITDA of PLN 179.5 million in 2015; all of these improved year on year. The growth of revenue, achieved despite an unfavourable market environment as demonstrated by a nearly 13% decrease in the capitalisation of domestic companies, was supported by a strict cost regime. Operating expenses decreased by PLN 7.2 million year on year to PLN 174.4 million in 2015; as a result, the cost/income ratio decreased to 53.2%.
“The Exchange is an important growth mechanism of the Polish economy, as evidenced by companies which raise funding on the capital market to improve their competitive position, become innovative, win new markets, and create jobs. To pursue the mission of the Exchange, its Group must rely on a sound and robust financial foundation as well as operational and organisational excellence. The results of the past year in the light of the demanding market environment provide a good basis for further determined efforts consolidating the position of GPW as a venue for safe long-term investment. The coming years will bring more challenges and require hard work,” said Małgorzata Zaleska, the President of GPW.
The GPW Group focused in 2015 on initiatives supporting the liquidity of trade on the financial market; as a result, despite falling stock prices on GPW and a global outflow of assets from the emerging markets, the revenue from the financial market was stable year on year at PLN 200.0 million in 2015 (61% share in the total revenue of the Group). This was largely driven by GPW’s efforts to acquire new exchange members and market makers who are key to improved liquidity. GPW also attracted many new issuers. According to PwC IPO Watch Europe, GPW was Europe’s third market by the number of IPOs (33) and a top 10 European market by the IPO value in 2015.
The revenue from the commodity market increased by 9.4% in 2015, accounting for 38.2% of the GPW Group’s total revenue. Liquidity on the electricity market and the gas market remained strong at 138.3% and 61.8% of the national consumption, respectively. Projects improving the position of the Polish Power Exchange on the European markets continued. The Financial Instruments Market opened in November 2015; it will provide opportunities in the coming years to acquire new members, further grow the liquidity on the underlying market, and thus further diversify the Group’s revenues.
The Group’s strong net profit and EBITDA in 2015 were driven among others by continued optimising initiatives and the cost regime. The Group’s operating expenses were reduced by PLN 7.2 million (4.0%) year on year to PLN 174.4 million in 2015. GPW’s separate operating expenses decreased even more, by PLN 10.3 million (-7,9%).
“The cost savings generated in 2015 were possible thanks to a strict cost discipline in the short-term as well as a range of optimising initiatives which will improve the Group’s costs in the coming years. Furthermore, the completed and on-going realignment of the structure of the Group is designed to enhance the operational excellence of our organisation, which is essential in view of the increasingly demanding market environment. The svings will help to finance our priority efforts in order to grow business,” said Karol Półtorak, Vice President of the GPW Management Board.
Click here for a Presentation of Financial Results of the GPW Group Q4 2015 and FY 2015.
