The Tel-Aviv Stock Exchange Ltd. Reports the Results of the Financial Statements for the Second Quarter of 2021

Rhea-AI Summary

Tel Aviv Stock Exchange (TASE) reported strong growth in the second quarter of 2021, with revenue totaling NIS 84.6 million, a 15% increase from NIS 73.5 million in Q2 2020. Despite a 2% decline in trading and clearing commissions, TASE saw substantial growth in listing fees (up 24%) and clearing house services (up 20%). Profit increased 20% to NIS 12.1 million. The first half of 2021 featured high IPO activity, with 63 companies raising NIS 17 billion in total.

Positive

• Revenue increased by 15% to NIS 84.6 million.
• Profit grew by 20% to NIS 12.1 million.
• Listing fees rose by 24%.
• Clearing house services revenue increased by 20%.
• 63 IPOs raised NIS 17 billion in the first half of 2021.

Negative

• Trading and clearing commissions decreased by 2% to NIS 31.65 million.
• Financing income decreased from NIS 3.5 million to NIS 1.3 million.

TEL AVIV, Israel, Aug. 11, 2021 /PRNewswire/ -- Ittai Ben Zeev, CEO of TASE, said today: "In the second quarter of the year, TASE recorded growth in all key indicators - revenue, profit and EBITDA. We are pleased to present an increase in revenue from various services that have been developed and expanded by TASE in recent years, despite the decrease in trading volumes and related revenue compared to the second quarter of 2020, which was characterized by extremely high trading volumes in response to the coronavirus outbreak.

"Concurrently, we are witnessing an ongoing growth in the number of companies and in the value of the assets traded on TASE in the second quarter of the year. During the quarter, 30 new companies joined TASE and in the first half of the year, 63 companies carried out IPOs, including 42 high-tech companies. We are proud that TASE, as home of the Israeli economy, continues to attract new companies and new investors and are dedicated to making TASE accessible and allowing growing sections of the public to take part in the success of the local economy by partnering with the Israeli companies."

The Tel-Aviv Stock Exchange Ltd. (TASE: TASE) today announced its financial results for the second quarter ended June 30, 2021:

Highlights of the Results:

Revenue in the second quarter of 2021 totaled NIS 84.6 million, compared to revenue of NIS 73.5 million in the corresponding quarter last year, an increase of 15%. The increase in revenue is due mainly to the increase in revenue other than from trading and clearing (10% of total revenue) and from a non-recurring income from the Ministry of Finance in respect of the listing for trade, until December 31, 2020, of government bonds in an amount of NIS 3.8 million in the lending pool.

Revenue from trading and clearing commissions decreased by 2% to NIS 31.65 million due to a reduction in the trading volumes of corporate bonds, derivatives and T-bills compared to the trading volumes in the corresponding quarter last year, this stemming from the effect of the coronavirus crisis outbreak in the first quarter last year on the trading volumes in the second quarter of 2020. This decrease was partly offset by the greater number of trading days in the quarter compared to the corresponding period last year. In the second quarter of 2021, there were 61 trading days, compared to 57 days in the corresponding quarter last year (a 7% increase).

An increase of 24%, to an amount of NIS 18.3 million, was recorded in revenue from listing fees and levies, stemming primarily from an agreement signed between TASE and TASE-CH and the Ministry of Finance in May 2021, effective from the beginning of the year, as well as from an increase in the number of prospectuses submitted for examination in the quarter, the higher number of companies and funds paying an annual levy and more.

A 20% increase in revenue from Clearing House services, which reached close to NIS 17 million, derived mainly from the rise in revenue from custodian fees, in view of the increase in the value of the assets held in TASE-CH, which has contributed 11% to the total increase in revenue from Clearing House services. Additionally, an 8% increase was recorded in revenue from data distribution and connectivity services, mainly due to data distribution to customers outside Israel and from the distribution of derivative data, and in revenue from connectivity services (BSO and Colocation).

The costs in the second quarter of 2021 totaled approximately NIS 70.4 million, compared to costs of NIS 63.9 million in the corresponding quarter last year, an increase of 10%. The increase in the costs is due mainly to employee benefits expenses (5% of total costs) resulting from salary updates, a higher headcount and an increase in overtime, marketing expenses (3% of total costs) and to an increase in property taxes and building maintenance expenses and depreciation expenses (1% of total costs, each).

Financing income, net in the second quarter of 2021 totaled NIS 1.3 million, compared to financing income of NIS 3.5 million in the corresponding quarter last year. The decrease in financing expenses is due to a difference in the yield on the Company's investments in Israeli Government bonds managed in marketable securities' portfolios, which amounted to 0.7% this quarter compared to 1.9% in the corresponding quarter last year. 

Profit in the second quarter of 2021 totaled NIS 12.1 million, compared to NIS 10 million in the corresponding quarter last year, an increase of 20%. The increase in profit was due to the increase in revenue from services other than trading and clearing, which was partly offset by the increase in expenses and the reduction in financing income, as described above.

Adjusted EBITDA in the second quarter of 2021 totaled NIS 26.2 million, compared to NIS 21 million in the corresponding quarter last year, an increase of 25%. The increase is due to the higher revenue from services other than trading and clearing, which was partly offset, mainly by the increase in employee benefits costs and marketing expenses.

The adjusted profit in the second quarter of 2021 totaled NIS 12.3 million, compared to NIS 10.4 million in the corresponding quarter last year, an increase of 18%. The increase is due mainly to the higher revenue from services other than trading and clearing, which was partly offset, mainly by the increase in employee benefits costs and marketing expenses and the reduction in financing income.

TASE notes that the first half of 2021 was characterized by the gradual lifting of all of the restrictions that were imposed on the business sector following the coronavirus outbreak, this in light of the expansion of the vaccination campaign and the resulting reduction in the number of cases in Israel, which in turn contributed to the economy resuming activity and to a reduction in the unemployment rate. A rise in morbidity rates began in the second quarter and grew stronger in July-August, resulting in the reinstatement of certain restrictions. Based on the nature of trading in the first half of 2021, to the extent that the rise in morbidity is short in term and does not entail the imposition of additional restrictions on the economy, no material adverse effect on the activity of the Company is expected.

The wave of IPOs continued into the second quarter, in which new and seasoned companies raised NIS 8 billion and, by the end of the first half of 2021, upwards of NIS 17 billion was raised, more than three times the amount raised in the corresponding period in 2020 and even higher than the amount raised in the full year 2020. In the second quarter, 30 new companies, including 3 R&D partnerships, carried out IPOs, raising total of NIS 4.7 billion. In the first half of 2021, 63 companies, including 3 R&D partnerships, raised NIS 7.8 billion in IPOs, compared to 6 new companies and R&D partnerships that raised NIS 1 billion in the corresponding period in 2020.

18 new high-tech companies listed on TASE in the second quarter of 2021, this in addition to the 24 new companies that listed in the first quarter of 2021, bringing the total to 42 new high-tech companies, as compared to 18 new high-tech companies listed in the full year 2020.

Among the companies that listed for trade in the second quarter of 2021 are three companies with an IPO value of NIS 2.5 to 3.7 billion, each. In addition to the 63 new issuers in the first half of 2021, 2 companies performed dual listing (for the first time, dual listing by a company that is traded on the Singapore Exchange), and 8 companies carried out an infusion of operations.

The average trading volumes in the first half of 2021 remined similar to the average trading volumes in the full year 2020, as compared to heightened trading volumes and increased fluctuation in the value of assets in the first half last year, which resulted from the uncertainty that prevailed in the markets following the coronavirus outbreak at the time. The rise in morbidity that began towards the end of the second quarter of 2021 has so far had no material effect on the trends described above concerning the value of the assets that are traded on TASE and the trading volumes.

Click here for the link to the complete financial statements for the second quarter of 2021>

Click here for the link to the financial presentation of the second quarter of 2021>

This announcement is not a substitute for perusing the Company's periodic reports for the second quarter of 2021, in which full and precise information is presented.

Contact:

Yehuda van der Walde
EVP, CFO
Tel: +972-76-8160442
cfo@tase.co.il

Orna Goren
Head of Communication and Public Relations Unit
Tel: +972-76-8160405
tase.ir@tase.co.il

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SOURCE The Tel Aviv Stock Exchange Ltd.

FAQ

What were the financial results of TASE for Q2 2021?

TASE reported revenue of NIS 84.6 million, a 15% increase from Q2 2020, and profit of NIS 12.1 million, up 20%.

How many IPOs did TASE have in the first half of 2021?

In the first half of 2021, TASE had 63 companies carry out IPOs, raising NIS 17 billion.

What was the trend in trading commissions for TASE in Q2 2021?

Trading and clearing commissions decreased by 2% to NIS 31.65 million due to lower trading volumes.

What is the growth in listing fees for TASE in Q2 2021?

Listing fees saw a 24% increase in Q2 2021.

What impact did the COVID-19 pandemic have on TASE's trading volumes?

TASE experienced reduced trading volumes in Q2 2021 compared to the high volumes seen in Q2 2020 during the pandemic.