Activity Of WSE Group In H1 2013: Stable Business Growth Supported By Advanced Technology

• Revenue in H1 2013: PLN 143.9 million, the highest in history, up 7.4% YoY
• Net profit: PLN 59 million, down 2.0% YoY
• EBITDA: PLN 82.8 million, up 1.5%
• EBITDA margin[1]: 57.5% v. 60.9% in H1 2012
• Revenue on the financial market: PLN 104.2 million, down 3.8%
• Revenue on the commodity market: PLN 38.4 million, up 60.5%
• Dividend for 2012 at 50% of the separate profit
• UTP, WSE’s advanced trading system, operational since 15 April

The Warsaw Stock Exchange Group has closed H1 2013 with a revenue of PLN 143.9 million, an increase of 7.4% year on year. This was the best six months in the history of the WSE in terms of revenue. The revenue in the Commodity Market business line increased substantially (by 60.5% to PLN 38.4 million) as a result of the acquisition of the Polish Power Exchange in February 2012. However, the revenue from the financial market decreased to PLN 104.2 million, by 3.8% year on year, mainly due to a decrease in volumes on the derivatives market and a reduction of transaction fees introduced by the WSE on the equities and derivatives markets as of the beginning of the year. Trading in equities stood at PLN 111.8 billion in H1 2013, an increase of more than 15% year on year, strengthening the position of the WSE in the region of Central and Eastern Europe. The share of the WSE in equities trading in the region exceeded 60% in Q2 2013 and reached a record-high 65% in June 2013 alone.

Operating expenses of the WSE Group increased by PLN 6.5 million (8.8%) to PLN 80.9 million as a result of an increase in the consolidated expenses of the PolPX Group (in H1 2013, PolPX was consolidated only from March on) and an increase in salaries, amortisation and depreciation. Amortisation and depreciation increased by PLN 3.3 million (40.3%) year on year due to the implementation of the state-of-the-art trading system Universal Trading Platform (UTP) operational as of 15 April 2013.

“The implementation of the new technology was certainly a major financial effort for the WSE, which will naturally reflect on the financial results of the company through increased amortisation. However, the transition will allow both the WSE and the entire Polish capital market not only to protect but also to improve the competitive position in Europe,” said Adam Maciejewski, President of the Management Board of the WSE.

At the same time, the WSE Group took a range of initiatives over the past months aiming on the one hand to strengthen the credibility of the capital market (e.g., amendments to the operating rules of NewConnect and Catalyst, arrangements for low-priced stocks) and to support business growth on the other.

“Concerning the latter issue, it is important to mention the continuation of the policy designed to diversify the sources of revenue: the creation of a new business line, the package of services provided on the commodity markets by the subsidiary WSEInfoEngine, and the gas market which opened more than 6 months ago on PolPX. In the context of the on-going amendment of the Energy Law, which introduces the obligation to sell a fixed proportion of natural gas on a commodity exchange, the WSE Group with its advanced and secure infrastructure of trading and clearing commodities stands a chance to play a major role in the liberalisation of Poland’s gas market,” said Adam Maciejewski.