The Tel-Aviv Stock Exchange Reports The Results Of The Financial Statements For The Third Quarter Of 2021

Rhea-AI Summary

The Tel Aviv Stock Exchange (TASE) reported its financial results for Q3 2021, achieving a revenue of NIS 75 million, up 4% from the previous year, despite a 10% decrease in trading days. Key highlights include 21 IPOs raising NIS 2 billion and a historic market cap surpassing NIS 1 trillion. Profit surged 79% to NIS 9.6 million, driven by increased revenue from services outside trading. TASE expects growth due to government initiatives boosting market activity.

Positive

• Revenue from trading and clearing commissions totaled NIS 28.7 million, with a slight shift in commission rates.
• Revenue from listing fees rose by 14% to NIS 16.9 million, reflecting increased company participation.
• Revenue from Clearing House services increased by 14% to NIS 16 million.
• Adjusted EBITDA reached NIS 22.8 million, marking an 18% increase.
• Profit reached NIS 9.6 million, a 79% increase year-on-year.

Negative

• Revenue from trading and clearing saw an 8% decrease due to fewer trading days.
• Overall trading activity remained flat compared to Q3 2020.

TEL AVIV, Israel, Nov. 22, 2021 /PRNewswire/ -- Ittai Ben Zeev, CEO of TASE, said today: "TASE continues its ascent and in the third quarter of the year once more achieves growth across all key performance indicators - revenue, profit and EBITDA, this despite there being 10% less trading days this quarter compared to the corresponding quarter in 2020.

In the third quarter, the IPO market continued its upwards momentum, with 21 IPOs, of which more than half by technology companies. We are extremely proud to be the world's leading exchange*, second only to China, in the ratio of new companies to existing companies. This reflects the revival of the capital market and the affluence of opportunities that it offers to Israeli investors and to foreign investors, which are showing an ever-growing interest in the market. The new IPOs raised NIS 2 billion in the quarter and, for the first time, the total market cap of the shares listed on TASE crossed the trillion-shekel mark. Another historical record was achieved in the third quarter, when the individual market cap of every company on TA-125 exceeded NIS 1 billion.

We expect further growth in activity on the local capital market due to recent steps taken by the Government of Israel, including the dual listing on TASE of foreign currency Government bonds and the gradual discontinuance of earmarked bonds. I am confident that an economic policy that aims to boost Israeli entrepreneurship and local companies will further increase the public's participation in the success of the Israeli economy, ultimately improving its finances."

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

Highlights of the Results:

The revenue of the Company from trading and clearing is affected, inter alia, by the number of trading and clearing days. In the third quarter of 2021, there were 56 trading days, compared to 62 days in the corresponding quarter last year (a 10% decrease). In the first nine months of 2021 there were 179 trading days, compared to 182 days in the corresponding period last year, a 2% decrease. In the fourth quarter of 2021 there are 65 days.

Revenue in the third quarter of 2021 totaled NIS 75.0 million, compared to revenue of NIS 72.0 million in the corresponding quarter last year, an increase of 4%. The increase in revenue is due mainly to the rise in revenue other than revenue from trading and clearing (7% of total revenue), and was partly offset by a reduction in revenue from trading and clearing (3% of total revenue) that stemmed mainly from the fewer trading days this quarter compared to the corresponding quarter last year.

TASE recorded a double-digit increase in all other revenue items:

Revenue from trading and clearing commissions totaled NIS 28.7 million, an 8% decrease compared to the corresponding quarter last year, resulting from the 10% reduction in trading days due to the timing of the Jewish new year holidays. The decrease was partly offset by a rise in the effective commission rate.

An increase of 14%, to an amount of NIS 16.9 million, was recorded in revenue from listing fees and levies, stemming from an increase in the number of companies and funds paying an annual levy and the charging of new levies.

Revenue from Clearing House services increased by 14% to an amount of NIS 16 million, which derived 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. Another increase was recorded in the revenue from Clearing House services to TASE members. Data distribution and connectivity increased by 10%, totaling NIS 12.9 million. Most of the increase is due to a 5% rise in revenue from data distribution to customers outside Israel, primarily in view of a modification to the pricelist that came into effect at the beginning of the second quarter of 2021. In addition, an increase in revenue from the distribution of derivative data and in revenue from connectivity services contributed another 3%, each, to the increase in revenue.

The costs in the third quarter of 2021 totaled approximately NIS 64.4 million, compared to costs of NIS 64.1 million in the corresponding quarter last year, an increase of 1%.

Financing income, net in the third quarter of 2021 totaled NIS 1.8 million, compared to financing expenses of NIS 0.9 million in the corresponding quarter last year. The increase in financing income 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 1.0% this quarter compared to a negative yield of 0.4% in the corresponding quarter last year. 

Profit in the third quarter of 2021 totaled NIS 9.6 million, compared to NIS 5.4 million in the corresponding quarter last year, an increase of 79%. The increase in profit was due to the increase in revenue from services other than trading and clearing and to the increase in financing income, as described above.

Adjusted EBITDA in the third quarter of 2021 totaled NIS 22.8 million, compared to NIS 19.3 million in the corresponding quarter last year, an increase of 18%. The increase is due mainly to the higher revenue from services, excluding trading and clearing.

The adjusted profit in the third quarter of 2021 totaled NIS 9.8 million, compared to NIS 5.6 million in the corresponding quarter last year, an increase of 74%. The increase is due mainly to the higher revenue from services, excluding trading and clearing, and to the increase in financing income, as described above.

TASE further reports today that the average trading volumes in the third quarter of 2021 were similar to the average trading volumes in the corresponding quarter last year, this, as opposed to the high trading volumes and strong fluctuations in the value of the assets in the first half of 2020, due to the effect of the uncertainty that prevailed in the market on the backdrop of the coronavirus outbreak at the time, which differed from those recorded in the first half of 2021. The changes in morbidity rates during the third quarter of 2021 did not materially affect the trends depicted above concerning the value of the assets traded on TASE and the trading volumes.

In its meeting today, the Board of Directors of TASE Clearing House approved The Phoenix's joining TASE as a "Custodial Member", which will enable it to transact directly on TASE's lending platform. The Phoenix has a market cap of NIS 10 billion, the highest among the insurance companies listed on TASE, and manages assets of close to NIS 300 billion. The Phoenix is the first Israeli institute joining TASE as a custodial member. A custodial member is a member that manages the assets of its clients on TASE and receives TASE's clearing and custodial services, but may not trade on TASE.

Click here for the link to the complete financial statements for the third quarter of 2021.

Click here for the link to the financial presentation of the third quarter of 2021.

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

* According to the World Federation of Exchanges (WFE) as of the end of August 2021.

Contact:

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

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

 

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SOURCE The Tel Aviv Stock Exchange Ltd.

FAQ

What is TASE's revenue for Q3 2021?

TASE's revenue for Q3 2021 was NIS 75 million, a 4% increase from the previous year.

How does the number of trading days in Q3 2021 compare to Q3 2020?

There were 56 trading days in Q3 2021, a 10% decrease from the 62 trading days in the same period in 2020.

What is the profit reported by TASE for Q3 2021?

TASE reported a profit of NIS 9.6 million for Q3 2021, which is a 79% increase compared to the previous year.

What impact did new IPOs have on TASE in Q3 2021?

There were 21 IPOs in Q3 2021, raising NIS 2 billion, contributing to TASE's positive revenue growth.

What is the expected growth for TASE due to government initiatives?

TASE anticipates further growth due to government steps aimed at boosting local capital market activity.