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- The adjusted net profit for the third quarter of 2019 amounted to NIS 7.2 million, compared to the adjusted profit of NIS 2 million for the corresponding quarter in 2018 – a 266% increase
- The adjusted net profit for the first nine months of 2019 amounted to NIS 18.2 million, compared to NIS 13.9 million for the corresponding period last year – a 31% increase
- TASE’s revenues for the quarter grew by 14% compared to the corresponding quarter last year and amounted to NIS 66 million
- Adjusted EBITDA for the quarter jumped to NIS 17 million, compared to NIS 11.6 million for – a 47% increase
- The excess proceeds from the issuance process, which amount to close to NIS 22 million, have contributed significantly to increasing the Company’s liquidity and its equity
Tel Aviv, Israel, November 26, 2019 – The Tel-Aviv Stock Exchange Ltd. (TASE: TASE) today announced its financial results for the third quarter of 2019. During the quarter, TASE closed its offering on the Tel-Aviv Stock Exchange and it has operated as a public company since August 1, 2019.
It should be noted that in comparing the profit for the first nine months of the year to the corresponding period last year, two non-recurring elements that do not involve cash flows have been eliminated, in order to obtain comparable adjusted results:
- Nine months 2019 – the effect of share-based payment expenses, (the management options) in an amount of NIS 3.4 million has been eliminated.
- Nine months 2018 – income from the reversal of the impairment provision previously recorded with respect to the TASE building, in an amount of NIS 85 million gross (NIS 65.5 million, net of tax), has been eliminated.
Highlights of the Results
Revenue – The revenue in the third quarter of 2019 totaled NIS 66 million, compared to NIS 58.2 million in the corresponding quarter last year – a 14% increase. Most of the increase is due to revenue from trading and clearing commissions, as well as revenue from listing fees and levies and revenue from the distribution of data and connectivity services. TASE’s revenue since the beginning of the year is approaching NIS 194 million, a 4% increase compared to the revenue of NIS 185 million in the first nine months of 2018. It should be noted that, in 2019, there were 62 trading days in the third quarter, whereas there were only 57 in the corresponding quarter last year; this was due to the timing of the Jewish festivals, most of which fell this year in October (the fourth quarter), while last year most of them fell in the third quarter.
Expenses – TASE’s expenses in the third quarter totaled NIS 60.3 million, compared to NIS 55.4 million in the third quarter of 2018. After eliminating the effect of share-based payment expenses, the expenses for the nine-month period totaled NIS 179.5 million, compared to NIS 166.5 million, after excluding the reversal of the impairment provision previously recorded with respect to the TASE building.
The adjusted net profit in the third quarter of 2019 totaled NIS 7.2 million, compared to adjusted profit of NIS 2 million in the corresponding quarter of 2018 – a 266% increase. Most of the increase is due to growth in revenue from services and financing income, with the increase in financing income being due to a positive return of 1.5% on TASE’s investments in held-for-trading financial assets (compared to 0.1% in the corresponding quarter last year), with this being offset by higher expenses for employee benefits and taxes.
The adjusted net profit in the nine-month period totaled NIS 18.2 million, compared to a profit of NIS 13.9 million in the corresponding period last year – a 31% increase. The increase is mainly due to growth in revenue from services and financing income, which was partly offset by higher expenses for depreciation, employee benefits and marketing. The net profit in the period totaled NIS 14.7 million, compared to a profit of NIS 79.4 million in the corresponding period last year – an 81% decrease, which was due to the reversal of the impairment provision in an amount of NIS 65.5 million in the corresponding period and to the increase in depreciation expenses and in share-based payment expenses in the second quarter of 2019, which was largely offset by the growth in revenue from services and financing income in the period.
The adjusted EBITDA in the third quarter of 2019 totaled NIS 17 million, compared to NIS 11.9 million in the corresponding quarter last year. The adjusted EBITDA in the first nine months of 2019 totaled NIS 47.8 million, compared to NIS 42.7 million in the corresponding period last year. With effect from 2019, following the application of IFRS16, expenses in respect of leases are included under depreciation expenses and had a NIS 6.3 million and a NIS 2.1 million effect in the first nine months and in the third quarter of 2019, respectively.
Significant growth in the liquidity balances – As stated, during the quarter, TASE completed its transition to becoming a public company listed on the Tel-Aviv Stock Exchange. With the closing of the sale offer and the listing of the Company’s shares, TASE received its share of the net surplus consideration from the sale process proceeds in an amount of NIS 15.5 million. Additionally, in August 2019, one of the Company’s shareholders disposed of 1.67 million shares that it had held prior to the TASE Restructuring Law taking effect and the Company received the surplus consideration of NIS 6.6 million in accordance with the provisions of the Law.
These amounts have been carried directly to the Company’s equity and have significantly increased its liquidity balances (above the regulatory requirements) and its equity by NIS 22.8 million.
Subsequent to the reporting date, in October 2019, another of the Company’s shareholders disposed of 313 thousand shares that it had held prior to the Restructuring Law taking effect; consequently, TASE received the surplus consideration of NIS 2.2 million and this will be carried to the Company’s equity in the fourth quarter of the year.
To view summary of the reports plus presentation, both in English, visit:
https://info.tase.co.il/Eng/about_tase/IR/news/2019/Pages/ir_news_20191126.aspx
This announcement is not a substitute for perusing the Company’s interim financial statements for the third quarter of 2019, in which full and precise information is presented.
