Thursday, September 6, 2018

JSE interim revenue climbs 8%

The Johannesburg Stock Exchange on Thursday reported an 8% jump in revenue for the six months ended June 201, to R1.15 billion.
“Revenue performance in the first quarter was strong, but the slow-down in volatility in the second quarter trimmed gains,” the group said.
Headline earnings per share moved 12.3% higher to 654.6 cents versus 488.9 cents in 2017.
Increased activity in all markets translated into operating revenue increasing by 7% to R1.2 billion, the JSE said.
“Our continued focus on cost control and a one-off tax credit of R31 million (R26 million tax and R5 million related interest) resulted in the JSE’s earnings after tax increasing by 34% to R561 million (H1 2017: R419 million),” it said, adding that costs were down by 5% to R613 million.
“Our focus for the second half of 2018 remains on projects designed to strengthen the delivery of the JSE’s strategic vision and our long-term growth strategy so that we are able to better service our clients. In particular, we are coming to the closing stages of our Integrated Trading and Clearing (ITaC) project 1b and c.
“This will provide clients with robust trading and clearing technology in our equity derivatives and currency markets and introduce more sophisticated trading and risk management functionality, enabling us over time to reduce the cost of transacting in those markets,” said JSE CEO, Nicky Newton-King.
The JSE recently launched the pilot phase of the electronic trading platform (ETP) for government bonds with National Treasury, which went live on 18 July 2018.
In keeping with its historical behaviour in this regard, the JSE also introduced a new tiered billing model for the Cash Equities Market with effect from 30 July 2018. “This will reduce the cost of trading in the Cash Equities Market by over 10%, it said.
Information Services revenue increased by 7% to R134 million, largely owing to an increase in the use of existing products and some new business, it said.
Technology costs meanwhile, declined by R13 million, down 10%, to R116 million, “largely owing to cost optimisation initiatives”.
General expenses rose by R29 million, up 14%, to R241 million (H1 2017: R212 million).
“We are clear about our 2018 priorities and hence what we need to do to deliver a better service to our clients and to grow this business sustainably. The JSE is a largely fixed-cost business. Therefore we will maintain our focus on costs, while making the necessary capital investments in areas that will enhance the group’s service offering and sustainability,” said Newton-King.

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