THE TEL-AVIV STOCK EXCHANGE REPORTS THE RESULTS OF THE FINANCIAL STATEMENTS FOR THE FOURTH QUARTER AND FOR 2021

Rhea-AI Summary

The Tel-Aviv Stock Exchange (TASE) reported strong financial results for Q4 2021 and the full year. Q4 revenues increased to NIS 86 million, an 11% rise year-over-year, while annual revenues totaled NIS 324 million, up 6%. Profits for Q4 rose 25% to NIS 14 million, with adjusted EBITDA up 14% to NIS 30 million. A record 94 IPOs were completed in 2021, with a record NIS 13 billion in foreign investments, establishing TASE's growth as a key player in capital markets. A buyback plan of up to NIS 100 million was also announced, benefiting shareholders.

Positive

• Q4 2021 revenues increased to NIS 86 million, an 11% rise year-over-year.
• Annual revenues for 2021 reached NIS 324 million, a 6% increase from 2020.
• Q4 profits rose 25% to NIS 14 million.
• Adjusted EBITDA for Q4 grew 14% to NIS 30 million.
• A record 94 IPOs were conducted in 2021, the highest since 1993.
• Foreign investments totaled NIS 13 billion in 2021, the highest in over a decade.
• TASE announced a share buyback plan of up to NIS 100 million.

Negative

• Q4 trading and clearing revenue decreased by approximately 4% year-over-year.
• Increased costs in 2021, totaling NIS 268.5 million, reflected a 6% rise from 2020.
• Higher employee benefit expenses contributed to rising operational costs.

• Revenues in the fourth quarter of 2021 totaled NIS 86 million, an 11% increase compared to the revenues in the corresponding quarter last year.
  
• TASE's revenues for 2021 totaled NIS 324 million, compared to NIS 304 million in 2020, an increase of 6%.
  
• The profit in the fourth quarter of 2021 totaled NIS 14 million, compared to NIS 11 million in the corresponding quarter last year, a 25% increase between the quarters.
  
• In the full year 2021, the profit totaled NIS 45 million, compared to NIS 37 million in 2020, a 23% increase.
  
• The adjusted EBITDA in the fourth quarter of 2021 totaled NIS 30 million, compared to NIS 26 million in the corresponding quarter last year, a 14% increase between the quarters;
  
• The adjusted EBITDA for 2021 totaled NIS 103 million, compared to NIS 95 million in 2020, an increase of 8% between the years.
  
• In 2021, 94 IPO's, including 61 high-tech companies and R&D partnerships, raised a total of NIS 10.5 billion - the highest number of IPOs since 1993.
  
• Foreign investments on TASE reached the highest volume in more than a decade, at NIS 13 billion.
  
• TASE Board of Directors has instructed the management to formulate a buyback plan for the Company's shares, in an amount of up to NIS 100 million and for a period of up to two years, in light of the company's financial position and cash balances. The buyback will benefit with investors and shareholders.

TEL AVIV, Israel, March 21, 2022 /PRNewswire/ -- Ittai Ben-Zeev, CEO of TASE, said today: "2021 has been a remarkable year of growth for TASE, with a 30-year record of 94 IPOs. The Israeli high-tech sector took center stage, with a historic record of 61 IPOs. Foreign investments reached the highest volume in more than a decade, accompanied by further growth in the Israeli public's involvement and activity on TASE. This is reflected, among others, in the increase in TASE's revenues and profitability. In the coming year we will be launching, for the first time, cutting-edge capital market analysis tools that will enable the public a clearer and smoother sail into this arena and increase its participation in the success of the Israeli economy."

The Tel-Aviv Stock Exchange Ltd. (TASE: TASE) today announced its financial results for the fourth quarter ended December 31, 2021 and for 2021.

TASE conquered new peaks this year, including a record number of overall IPOs, and of high-tech IPOs in particular, high yields on TASE's flagship indices and strong trading volumes.

TASE will distribute a dividend of 50% of the profit, in an amount of NIS 22.7 million. The record date for entitlement to the dividend is March 30, 2022 and the payment will be made on April 7, 2022. This concludes the dividend distribution plan, as approved in 2019.

TASE Board of Directors has instructed the management to formulate a buyback plan for the Company's shares, in an amount of up to NIS 100 million and for a period of up to two years, in light of the company's financial position and cash balances. The buyback will benefit with investors and shareholders.

107 new companies joined TASE in 2021, including 94 IPOs, the highest number since 1993, representing a 28% increase in the number of new companies. This places TASE second in the world in the rate of new companies, according to WFE. The number of TASE-listed companies at the end of the year was 541, the highest in a decade and with an all-time largest market cap, which crossed the NIS 1 trillion mark for the first time. The increase in the number of new companies also allowed TASE to launch new indices and sectors - in 2021, 3 new equity indices were launched - Retail, Cannabis and Dual Listing, alongside 4 new bond indices.

The influx of foreign money into TASE in 2021, totaling NIS 13 billion, net, in shares, marked a 10-year record, following net sales of NIS 4.8 billion and NIS 1.3 billion in 2020 and 2019, respectively.

TASE became an important hub for foreign ETFs traded locally, and this last February welcomed international investment management firm, Invesco, which listed 6 ETFs with more to come. Invesco is joining the two international issuers, Blackrock and Lyxor, already listed on TASE. More than 30 foreign ETFs are currently traded on TASE. 

TASE's flagship indices also reached new peaks - at the end of the year, the TA-35 Index increased by 32% and the TA-90 Index increased by 33%, outperforming the leading global indices (in local currency terms): MSCI Global index increased by 17%; U.S. indices, S&P 500 and Dow Jones increased by 27% and 19%, respectively; while the European exchanges recorded an average increase of 21%. As the share prices in the indices soared, the individual market cap of every company on TA-125 index exceeded NIS 1 billion. 

TASE continued to offer financial education to the public, strengthening the ties and improving the public's involvement in trading. The increase in the number of new accounts on TASE continued into 2021, with 140 thousand new accounts, and is expected to continue, in line with the global trend of the public's growing involvement in the capital market. In 2021, two new members were approved - insurance company, The Phoenix, as a custodial member transacting directly on TASE's lending platform, and fintech company, Fair Financial Technologies, which will operate a digital fintech platform for the distribution of mutual funds to the public in Israel, for more competitive and affordable services.

TASE has also announced its intention to publish its first ESG report at the end of the month and to encourage ESG practices among all TASE-listed companies.

Highlights of the results for the fourth quarter of 2021:

TASE's revenue in the fourth quarter of 2021 totaled NIS 85.7 million, compared to revenue of NIS 77.5 million in the corresponding quarter last year, an increase of 11%. The increase is due mainly to the higher revenue from trading and clearing, amounting to NIS 36.6 million, that resulted mainly from the increase in trading volumes between the quarters. Half of the increase in revenue is attributed to the higher trading volumes in the equity market. This increase was partly offset by the fewer number of trading days in the fourth quarter compared to the corresponding quarter last year. Additionally, the revenue from listing fees and levies increased by 14% compared to the fourth quarter of 2020, amounting to NIS 17.4 million. Another inter-quarter increase was recorded in revenue from Clearing House services, which amounted to NIS 17.6 million, and in revenue from data distribution and connectivity, with NIS 13.5 million.

Costs in the fourth quarter of 2021 after excluding the effect of share-based payment expenses totaled NIS 68.6 million, compared to expenses of NIS 63.7 million in the corresponding quarter last year, an increase of 8%. The increase in costs is due mainly to growth in employee benefit expenses (7% of the total increase in costs).

Net financing income in the fourth quarter of 2021 totaled NIS 1.3 million, similarly to the net financing income of NIS 1.2 million recorded in the corresponding quarter last year. The income resulted from positive yields of 0.7% on the Company's investments in Israeli Government bonds managed in marketable securities' portfolios, similar to the yield in the corresponding quarter last year. 

The profit in the fourth quarter of 2021 totaled NIS 14.1 million, compared to NIS 11.3 million in the corresponding quarter last year, a 25% increase. The increase in profit is due to the higher revenue from services, less the increase in expenses, mostly employee benefits expenses. 

The adjusted EBITDA in the fourth quarter of 2021 totaled NIS 29.5 million, compared to NIS 25.9 million in the corresponding quarter last year, a 14% increase between the quarters. The increase is due to the higher revenue from services, less the increase in expenses, mostly employee benefits expenses.

The adjusted profit in the fourth quarter of 2021 totaled NIS 14.2 million, compared to NIS 11.5 million in the corresponding quarter last year, a 24% increase. The increase in profit is due to the increases in most revenues from services, less the increase in expenses, mostly employee benefits expenses.

Highlights of the results for full fiscal year 2021

Revenue in 2021 totaled NIS 323.7 million, compared to revenue of NIS 304.3 million in 2020, an increase of 6%. The increase is due mainly to the rise in revenue other than revenue from trading and clearing (8% of total revenue), and was partly offset by a reduction in revenue from trading and clearing (2% of total revenue).

Revenues from trading and clearing amounted to NIS 131.1 million, a decrease of approximately 4%. Half of the decrease was due to a decrease in the number of trading days and half to a decrease in corporate bonds trading volumes.        

Revenue from listing fees and levies totaled NIS 69.1 million, a 15% year-on-year increase, stemming mainly from a rise in revenue from listing fees, which contributed 7% to the increase in revenue, of which 4% resulted from an agreement signed between TASE and TASE-CH and the Ministry of Finance in May 2021. Additionally, the greater number of prospectuses submitted for examination in 2021 contributed a 4% increase, while the higher number of companies and funds that pay an annual fee and the charging of new annual fees increased revenue by 3%.

Revenue from Clearing House services also recorded a double-digit rise, amounting to NIS 65.5 million in 2021, compared to 57.5 million. The increase in revenue is due mainly to the rise in revenue from custodian fees, which contributed 10% to the increase in revenue, this as a result of the increase in the value of assets that are held in custodianship at TASE-CH compared to the value of the assets in 2020. Revenue from data distribution and connectivity services totaled NIS 52.3 million, compared to NIS 48.4 million in the previous year. Most of the increase in revenue is due to a rise in revenue from data distribution to customers outside Israel, which contributed 3% to the increase in revenue.

Costs in 2021 after excluding the effect of share-based payment expenses totaled NIS 268.5 million, compared to expenses of NIS 254.2 million in 2020, an increase of 6%.  The increase in the costs was due mainly to growth in employee benefit expenses, representing 5% of total costs, as a result of salary updates, an increase in overtime and the increase in manpower, partly as a result of the growth in activity. 

Net financing income (expenses) - In 2021, financing income amounted to NIS 4.5 million, compared to net financing expenses of NIS 0.6 million in 2020. The increase in financing income is due to a positive yield of 2.48% on the Company's investments in Israeli Government bonds managed in marketable securities' portfolios, compared to a positive yield of 0.15% in 2020.

The profit in 2021 totaled NIS 45.5 million, compared to NIS 36.9 million in 2020, an increase of 23%. The increase in the profit is mainly due to the higher revenue from services, other than revenue from trading and clearing, and the transition to financing income this year, which were partly offset by an increase in costs, primarily employee benefit expenses and tax expenses.

The adjusted EBITDA in 2021 totaled NIS 103.0 million, compared to NIS 95.1 million in 2020, an increase of 8% between the years. The increase in profit was due mainly to an increase in revenue, other than revenue from trading and clearing, which was partly offset by an increase in costs, primarily employee benefit expenses.

The adjusted profit in 2021 totaled NIS 46.2 million, compared to NIS 38.2 million in 2020, an increase of 21%. The increase in the profit is mainly due to the higher revenue from services, other than revenue from trading and clearing, and the transition to financing income this year, which were partly offset by an increase in costs, primarily employee benefit expenses and tax expenses.

Click here for the link to the full financial statements for the fourth quarter of 2021 and the full year 2021>

Click here for the link to the financial presentation of the fourth quarter of 2021 and the full year 2021>

This notification does not supersede the stated in the periodic financial statements of the Company for the fourth quarter of 2021 and the full year 2021, which contain the full and accurate information.

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 were TASE's revenues for Q4 2021?

TASE's revenues for Q4 2021 totaled NIS 86 million, an 11% increase from the same period in 2020.

What is the total profit for TASE in 2021?

TASE's total profit for 2021 was NIS 45 million, up 23% from 2020.

How many IPOs did TASE complete in 2021?

TASE completed a record 94 IPOs in 2021, including 61 from high-tech companies.

What is TASE's buyback plan for its shares?

TASE's Board of Directors has approved a buyback plan for up to NIS 100 million over the next two years.

What were the adjusted EBITDA figures for TASE in 2021?

TASE's adjusted EBITDA for 2021 totaled NIS 103 million, an 8% increase from 2020.

When will TASE distribute its dividend?

TASE will distribute a dividend of NIS 22.7 million on April 7, 2022, with a record date of March 30, 2022.

How did foreign investments perform on TASE in 2021?

Foreign investments on TASE reached NIS 13 billion in 2021, the highest volume in over a decade.