TASE Releases 2018 Financial Results

• Significant Improvement In Current Activity With Increase Of 5% In Revenues, Amounted To NIS 256 Million
  
• Expenses down 1% in 2018 relative to 2017
• 2018 EBITDA amounted to NIS 61 million, increase of 34%, relative to 2017
• Net profit, excluding the reversal of the impairment provision for the TASE building amounted to NIS 21 million, growth of 59% over 2017;
• Total 2018 net profit amounted to NIS 86 million
• TASE to complete IPO in the coming months following release of Q1 2019 financial statements; announces dividend policy for the first time, whereby 30%-50% of current profit will be distributed starting in 2020

Ittai Ben Zeev, TASE’s CEO, stated today: “We are pleased to publish the 2018 financial statements that show an increase in current activity and an improvement in all key indicators, with an excellent bottom line that displays 59% growth in net profit. In addition, we expanded our investments in 2018 to develop and provide services, infrastructure and new products, in keeping with our strategic plan, the fruits of which we expect to reap in the near future.

We will embark on an IPO in the next few months following release of the Q1 2019 financial results. TASE is the most appropriate platform for sharing Israel’s economic success with the public and we are confident that the general public will take a significant holding in TASE.”

The Tel Aviv Stock Exchange (TASE) today (Tuesday) released its financial results for 2018. TASE posted improvements in all key indicators of activity, including revenues, operating profit and net profit.

Revenues – 2018 revenues amounted to NIS 256 million, a 5% increase over the NIS 242 million revenues in 2017, and similar revenues in 2016. This increase in revenues stems primarily from implementation of TASE’s strategic plan, which includes, among other things, the establishment of TASE Nominee Company, which stimulated both an increase in revenues and a reduction in costs, contributing a net NIS 5 million. In addition, there was an NIS 4 million increase in revenues from trading and clearing fees.

Expenses – At the same time, TASE management continued to make efficiency improvements and reduce expenses. Total TASE expenses amounted to NIS 194 million in 2018, a 1% saving relative to the 2017 total.

TASE successfully cut operating expenses relative to 2017, mainly due to the discontinuation of payments to the bank-owned nominee companies, following the establishment of TASE Nominee Company, as well as to various efficiency measures implemented by TASE.

Adjusting for one-time expenses (revenues) – revenues from the reversal of the impairment allowance for the decline in value of the TASE building in 2017 and for the grant of shares to employees in 2017 – expense levels remained at NIS 227 million in 2018, similar to the NIS 226 million in 2017.

EBITDA – the operating profit before depreciation and amortization expenses – came to NIS 61 million, a 34% increase over the NIS 46 million in 2017.

Net Profit – 2018 net profit amounted to NIS 86 million. Adjusting for the NIS 65.5 million reversal of the impairment allowance of the TASE building, net of taxes, net profit came to NIS 21 in 2018, a sharp 59% increase relative to the NIS 13 million in 2017. In the first half of 2018, TASE reversed the impairment allowance for the TASE building given the assessed improvement of operations, with the decision to do so being based on the findings of an independent assessor.

Investments – TASE continues to implement its strategic plan and in 2018 carried out investments of NIS 54 million, relative to NIS 20 million in 2017. The investments increased to expand the services provided by TASE, to diversify its revenues and to develop its technological as well as other infrastructure. Among the key investments conducted this year: the development of co-location services, a central securities lending pool based on Blockchain technology, an online new issues bulletin board and a direct subscription system, infrastructure for trading ETFs and others.

 Together with the release of its 2018 financial statements, TASE announced today that its IPO is scheduled to take place in the coming months, based on Q1 2019 results. TASE plans to issue approximately 30% of its shares in an offer for sale (OFS), as part of its commitment to involve the general public in Israel’s economic success. TASE also published today, for the first time, its dividend policy, pursuant to which, following the IPO and starting in 2020, it is expected to distribute dividends of 30%-50% of its profit to shareholders. 

Condensed financial data for the years 2016-2018 (in NIS thousands)

Raisings on the TASE equities market for the years 2016-2018

* The number of IPOs does not include dual listings, which only issued bonds or preference shares.

Daily trading turnovers on the equities market for the years 2016-2018 (in NIS millions)