The Johannesburg Stock Exchange (JSE) reported double-digit earnings growth for the first half of 2023, despite macroeconomic and market headwinds.
The bourse achieved a 10% year-on-year increase in net profit after tax, reaching R493 million.
It also posted 12% growth in headline earnings per share, rising to 607.2 cents. This performance was supported by a 53% increase in net finance income based on higher interest rates in the first half.
However, the company’s EBITDA was down 4%, declining to R604 million. Its EBITDA margin decreased by three percentage points to 42%.
Total revenue was up 5% to R1.45 billion, despite headwinds in the equity market, the largest contributor to revenue.
The result was supported by an increased contribution from diversified, non-trading revenue – largely within the Information Services and JSE Investor Services (JIS) segments, with both reporting double-digit growth.
“The Group’s performance was supported by diversifying earnings through new business lines. The contribution of non-trading revenue, including margin income in H1, now represents 36% of operating revenue, up from 29% in 2019,” said JSE Group CEO Leila Fourie.
“We maintained operational resilience with outstanding uptime across our markets of 99.98%. The business continues to be cash generative with a sound balance sheet.”
The company’s R33 million capital expenditure in the first half of the year was strategically directed towards safeguarding core business operations and fueling the growth of new business lines.
The bourse also reported a healthy cash balance of R1.9 billion as of 30 June 2023, excluding bond investment of R195 million.
Ring-fenced and non-distributable cash and bonds (regulatory capital and investor protection) amounted to R1.5 billion.
Clear targets have been set for the remainder of 2023.
Operating expense growth is expected to be 5% to 8% for the full year. Capital expenditure is forecasted to end the year between R130 million and R150 million.
“We are well-positioned to take on the opportunities and challenges within our operating environment during H2 and continue to deliver sustainable value for all our stakeholders,” said Fourie.