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- Revenue at PLN 77.2 mn (increase of 11.4% yoy)
- Net profit of GPW Group at PLN 27.0 mn in Q2 2015 (increase of 32.2% yoy)
- EBITDA at PLN 37.8 mn (increase of 20.2% yoy)
The GPW Group earned a revenue of PLN 77.2 million in Q2 2015. Maintaining its expenses at PLN 45.0 million, the Group generated a net profit of PLN 27.0 million and an EBITDA of PLN 37.8 million, thus improving its profitability measures year on year.
The increase of revenue by 11.4% year on year in Q2 2015 was mainly driven by increased activity of commodity market participants. The trading volumes on the gas market increased nearly five-fold year on year. The volume of issued and cancelled certificates of origin of energy increased year on year and stood at 18.4 TWh in Q2 2015 (an increase of 8.2% year on year).
The revenue on the financial market remained stable at PLN 49.2 million (an increase of 2.0% year on year), mainly due to the revenue from trading in equities (an increase of 6.6% year on year) and the listing revenue (an increase of 6.7% year on year).
“We have intensified our sales initiatives in the last few months. To improve the liquidity of the equity market, we have launched the High Volume Funds programme for active mutual funds and offered a promotion for market makers of medium-sized and small companies. We have also actively promoted the Polish market among Polish and international investors and issuers,” said Paweł Tamborski, President of the GPW Management Board.
In May 2015, GPW and partners opened the “Capital for Growth” project: a series of 16 regional events that promote the opportunities of raising capital for growth of companies and local governments on the capital markets. Four meetings have been held to date: in Bydgoszcz, Gdańsk, Kraków, and Wrocław; another dozen events are scheduled for the latter half of the year.
The GPW Management Board pursues the goals of the updated strategy GPW.2020 by consistently optimising the organisation of the Group and improving its effectiveness, among others by concentrating the commodity market assets within TGE.
“The initiatives aimed at enhancing the structure of the Group combined with cost effectiveness have allowed us to reduce the cost/income ratio to 51.5% in H1 2015 compared to 57.2% in all of 2014. We are well on track to achieve our strategic target of a C/I ratio under 50% in 2020. The savings we have generated so far and the ones we are planning in the coming quarters will co-finance the development initiatives and projects reinforcing our business offer,” said Karol Półtorak, Vice-President of the GPW Management Board.
Presentation of GPW Group Financial Results
in Q2 2015
Net profit
The net profit of the GPW Group was PLN 27.0 million in Q2 2015, representing an increase of 32.2% year on year and a decrease of 29.8% quarter on quarter. The increase of the net profit year on year was mainly driven by a higher revenue on the commodity market due to a higher value of trade on all markets operated by TGE, as well as a cost base maintained close to the H2 2014 level (an increase of 1.4%). The decrease of the net profit quarter on quarter in Q2 2015 was caused by the seasonally lower (by 28.0%) revenue on the commodity market, as well as higher operating expenses (by 12.4%) compared to the low base of Q1 resulting from one-off events.
Revenue on the financial market
The revenue on the financial market was PLN 49.2 million in Q2 2015, representing a moderate improvement year on year (by 2.0%) and a modest decrease quarter on quarter (by -2.0%). The revenue on the financial market represented 63.8% of the total revenue of the GPW Group compared to 69.6% in Q2 2014 and 57.0% in Q1 2015. The revenue on the financial market includes the trading revenue, the listing revenue, as well as the revenue from information services.
Trading revenue on the financial market
The trading revenue on the financial market was PLN 33.1 million in Q2 2015 compared to PLN 32.5 million in Q2 2014 and PLN 34.4 million in Q1 2015. The increase in the revenue by 1.8% year on year was a result of higher electronic order book (EOB) trade in equities on the Main Market (an increase of 7.0% year on year) and a decrease of the volume of trade in derivatives (by 7.8% year on year). The decrease by 3.6% quarter on quarter was driven by a 3.7% decrease in the value of EOB trade, a lower volume of trade in derivatives, and a lower value of trade in bonds.
Listing revenue
The Group’s listing revenue on the financial market was PLN 6.5 million in Q2 2015, representing an increase of 6.7% year on year and 4.8% quarter on quarter. The listing revenue included the fees for admission and introduction, which increased by 21.7% year on year and 39.2% quarter on quarter due to a much stronger activity on the primary market in Q2 2015.
Information services
The revenue from information services was PLN 9.5 million in Q2 2015 compared to PLN 9.6 million in Q2 2014 and PLN 9.6 million in Q1 2015.
Revenue on the commodity market
The revenue on the commodity market was PLN 26.9 million, representing an increase of 32.2% year on year and a decrease of 28.0% quarter on quarter. The revenue on the commodity market represented 34.8% of the total revenue of the GPW Group in Q2 2015 compared to 29.4% in Q2 2014 and 42.4% in Q1 2015. The revenue on the commodity market includes the trading revenue, the revenue from the operation of the register of certificates of origin, as well as the revenue from clearing.
Trading revenue on the commodity market
The trading revenue on the commodity market was PLN 13.6 million in Q2 2015, representing an increase of 33.7% year on year and a decrease of 26.5% quarter on quarter. The increase in the revenue year on year was driven by an increase in the volume of trade in gas and property rights year on year in Q2 2015. The decrease in the revenue quarter on quarter was mainly driven by a seasonal decrease in trade in property rights in Q2, as well as a decrease in the volume of trade in gas.
Operation of the Register of Certificates of Origin
The revenue from the operation of the register of certificates of origin was PLN 5.5 million in Q2 2015, representing an increase of 15.0% year on year and a seasonal decrease of 27.9% quarter on quarter. The total volume of issued and cancelled certificates of origin of energy was 18.4 TWh in Q2 2015, representing an increase of 8.2% year on year and a decrease of 15.4% quarter on quarter.
Clearing
The revenue from clearing was PLN 7.8 million in Q2 2015, representing an increase of 44.7% year on year and a decrease of 30.7% quarter on quarter. The year-on-year and quarter-on-quarter change was closely related to the volumes of trade on all TGE markets. The volume of trade on the market in electricity, gas, and property rights increased in Q2 2015 by 1.0%, 385.3%, and 142.8%, respectively, year on year in Q2 2015. The decrease in the revenue quarter on quarter was due to the seasonal decrease of the volume of trade on the gas market (by 42.6%) and the property rights market (by 17.7%).
Operating expenses
Operating expenses were PLN 45.0 million in Q2 2015 (an increase of 1.4% year on year and by 3.7% quarter on quarter) net of the one-off events of Q1 2015 (release of provisions against salaries at PLN 3.3 million). The cost/income ratio was 51.5% in H1 2015 compared to 56.7% in H1 2014. Strategy envisages PLN 19 million of savings in 2015-2017 (net of the cost of optimisation), including PLN 10 million in 2015 alone.
Expenses in Q2 2015 were mainly driven by salaries at PLN 14.9 million (an increase of 15.3% year on year and 30.4% quarter on quarter), depreciation and amortisation at PLN 6.6 million (a decrease of 7.4% year on year and an increase of 6.8% quarter on quarter), and external service charges at PLN 10.1 million (a decrease of 3.8% year on year and an increase of 13.7% quarter on quarter).
Share of profit of associates
The GPW Group’s share of profit of associates was PLN 0.3 million in Q2 2015 compared to PLN 0.9 million in Q2 2014 and PLN 0.2 million in Q1 2015. The share of profit of associates was driven mainly by the profits of the KDPW Group and Aquis Exchange. The profit of KDPW attributable to GPW was PLN 1.3 million in Q2 2015. The multilateral trading facility Aquis Exchange reported a dynamic increase in turnover, which still did not translate into an increase of revenue. The loss of Aquis attributable to GPW was PLN 1.8 million in Q2 2015 (compared to PLN 1.5 million in Q1 2015).
