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

Rhea-AI Summary

On May 24, 2021, the Tel Aviv Stock Exchange (TASE) announced Q1 2021 financial results, reporting revenue of NIS 78.4 million, down 3% from NIS 81.2 million year-over-year. Trading and clearing revenue decreased by 14% to NIS 34.1 million, influenced by lower trading volumes. However, listing fees rose 10% to NIS 16.4 million. TASE's net profit fell 6% to NIS 9.7 million, while adjusted EBITDA dropped 15% to NIS 24.6 million. Notably, TASE facilitated 33 IPOs raising NIS 3.1 billion in the tech sector, marking the highest quarterly figure since 1993.

Positive

• 33 IPOs raised NIS 3.1 billion, highest quarterly number since 1993.
• Increase in revenue from listing fees and data distribution services, up 10% and 9% respectively.

Negative

• Revenue decreased by 3%, primarily due to a 14% drop in trading and clearing revenue.
• Net profit declined 6% from NIS 10.2 million to NIS 9.7 million.
• Adjusted EBITDA decreased by 15%.

TEL AVIV, Israel, May 24, 2021 /PRNewswire/ -- Ittai Ben Zeev, CEO of TASE, says today: "The rebuilding of financial certainty and the gradual awaited resuming of economic operations in the first quarter following the vaccination campaign resulted in a growing number of IPOs by new companies, most notably in the high-tech sector, with strong trading volumes and a surge in prices across all leading indices. We are thrilled that TASE is now able to more accurately and correctly reflect the Israeli economy. It is our mission to encourage more Israeli companies, especially major technology companies, to join TASE and allow a greater number of Israeli investors to partake in the success of the Israeli economy through TASE."

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

Highlights of the Results:

The revenue in the first quarter of 2021 amounted to NIS 78.4 million, compared to revenue of NIS 81.2 million in the corresponding quarter last year, a decrease of 3%. The decrease was due mainly to the 14% reduction in revenue from trading and clearing, which amounted to NIS 34.1 million. Most of the aforesaid reduction stemmed from the lower trading volumes of shares and corporate bonds and the decrease in clearing of mutual funds compared to the corresponding period last year, in which they were relatively high mainly as a result of the coronavirus outbreak and the ensuing volatility in the financial markets.

The reduction in revenue that resulted from the lower trading volumes was partly offset by the increase in revenue from other sources. Revenue from listing fees and levies increased by 10% due to multiple prospectuses, amounting to NIS 16.4 million. Revenue from data distribution and connectivity services increased by 9%, totaling NIS 15.1 million.

The costs in the first quarter of 2021 amounted to NIS 65.7 million, compared to costs of NIS 63.6 million in the corresponding quarter last year, an increase of 3%. The increase in the costs is due mainly to employee benefits expenses resulting from salary updates and to an increase in depreciation expenses in respect of projects activated between the periods.

Net financing income in the first quarter of 2021 amounted to NIS 0.1 million, compared to net financing expenses of NIS 4.4 million in the corresponding quarter last year. The transition to financing income in the quarter resulted from positive yields of 0.02% on the Company's investments in Israeli Government bonds managed in marketable securities' portfolios, compared to negative yields of 2.1% in the corresponding quarter last year, as a result of the implications of the coronavirus outbreak on the trading on TASE and the reduction in the prices of securities.

The profit in the first quarter of 2021 totaled NIS 9.7 million, compared to NIS 10.2 million in the corresponding quarter last year, a decrease of 6%. The decrease in profit was due to lower revenue from services, primarily revenue from trading and clearing services, and to higher expenses, which were partly offset by the transition to financing income, as described above.

The adjusted EBITDA in the first quarter of 2021 totaled NIS 24.6 million, compared to NIS 28.9 million in the corresponding quarter last year, a decrease of 15% resulting from the reduction in revenue, primarily from trading and clearing, and the higher costs, mostly employee benefits expenses.

The adjusted profit in the first quarter of 2021 totaled NIS 9.9 million, compared to NIS 10.6 million in the corresponding quarter last year, a decrease of 7% resulting mainly from the reduction in revenue, primarily from trading and clearing, the higher costs, mostly employee benefits expenses and depreciation expenses, which were mostly offset by the transition to financing income.

TASE notes that the success of the vaccination campaign alongside the emergence from the crisis and the reduced unemployment rate was well reflected on TASE. The data for the quarter shows a growing number of IPOs, most notably in the high-tech sector, with strong trading volumes and a surge in prices across all leading indices. The upward trend of new IPOs gathered momentum in the first quarter, garnering 33 IPOs, which raised NIS 3.1 billion, mostly in the high-tech sector, more than the number of IPOs in the full year 2020 and the highest quarterly number of IPOs since 1993. Since the end of the first quarter to date, 9 new companies joined TASE, bringing the total number of new companies that joined TASE since the beginning of 2020 to 73. To the date of the report, the shares of 490 companies are listed in TASE.

It is further noted that, this April, TASE signed an agreement with the UAE for the lease of a floor at the TASE building that will be used as an embassy, which is expected to open in the next few weeks.

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

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

This announcement is not a substitute for perusing the Company's periodic reports for the first 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 are the financial results for TASE in Q1 2021?

TASE reported revenue of NIS 78.4 million, a decrease of 3% from the previous year.

How many IPOs did TASE facilitate in Q1 2021?

TASE facilitated 33 IPOs in Q1 2021, raising NIS 3.1 billion.

What caused the decrease in TASE's revenue in Q1 2021?

The decrease was mainly due to a 14% reduction in revenue from trading and clearing.

What was TASE's net profit for Q1 2021?

TASE's net profit for Q1 2021 was NIS 9.7 million, down 6% from NIS 10.2 million.

What is TASE's adjusted EBITDA for Q1 2021?

TASE's adjusted EBITDA for Q1 2021 was NIS 24.6 million, a decrease of 15%.