The Tel-Aviv Stock Exchange Reports The Results Of The Financial Statements For The Third Quarter Of 2020

TEL AVIV, Israel, Nov. 24, 2020 /PRNewswire/ --

Ittai Ben-Zeev, CEO of the Tel Aviv Stock Exchange, says today: "TASE is concluding another quarter with a significant rise in trading revenue and growth of activity. The growing number of investors and the higher trading volumes in the third quarter of the year were accompanied by six new companies that joined TASE, bringing the number of new companies listed on TASE since the beginning of the year up to 17. Moreover, dozens of new IPOs are planned for the coming months, mainly by high-tech companies and R&D partnerships.

"As ever, and more so in these challenging times, TASE continues to play a central role as a capital raising and growth platform for Israeli businesses, allowing the public to partake in the success of the Israeli economy, most notably that of Israeli high-tech and technology. All this is achieved alongside the ongoing capital raising by the government and successful debt raising during the quarter."

The Tel-Aviv Stock Exchange (TASE: TASE) today announced its financial results for the third quarter and the first nine months ended September 30, 2020:

Highlights of the Results:

The revenue in the third quarter of 2020 totaled approximately NIS 72 million, compared to approximately NIS 66 million in the corresponding quarter last year – a 9% increase. The increase is due mainly to the significant increase in trading volumes on TASE following the coronavirus crisis, stemming mainly from the higher share trading volumes. Growth was also recorded for the other revenue items. Revenue from listing fees and levies increased by 10% compared to the corresponding quarter last year, mainly due to the large number of prospectuses. Clearing House services rose by 8% with the introduction of new services, and data distribution and connectivity services increased by 13% following the implementation of the information usage model and the initiation of Colocation services and hosting services for trading servers at TASE's Data Center.

Revenue for January-September 2020 amounted to approximately NIS 226.8 million, compared to approximately NIS 193.6 million in the first nine months of 2019, an increase of 17% across all main revenue items. Revenue from trading and clearing commissions increased by 28% during the period, totaling approximately NIS 103 million. A double-digit growth was also recorded in other main items, with a 10% increase in listing fees and levies to NIS 44.6 million, an 11% increase in clearing services to NIS 42.4 million and a 12% increase in data distribution and connectivity services to NIS 35.5 million. The increase in said items stems, among others, from TASE's strategic investments in the development of new products and services.

TASE's costs amounted to approximately NIS 64.1 million in the third quarter of 2020, an increase of 6% compared to approximately NIS 60.3 million in the corresponding quarter last year, which was due mainly to the increase in employee benefits, primarily in respect of non-utilization of vacation days in the quarter as a result of the coronavirus crisis and salary updates. Expenses in the first nine months of the year amounted to NIS 191.6 million, compared to expenses of NIS 183.0 million in the corresponding period last year, a 5% increase. Close to two thirds of the increase in costs originates in employee benefits expenses resulting from salary updates, variable compensation and a reduction in the utilized vacation days due to the coronavirus crisis. The balance derives from an increase in marketing expenses and from an increase in IT expenses, primarily reflecting the activation of new systems.

Financing expenses totaled NIS 0.9 million in the third quarter, compared to income of NIS 3.1 million in the third quarter of 2019, stemming mainly from the 0.4% negative yield resulting from the drop-in prices of securities, compared to the positive yield of 1.5% in the corresponding quarter. Financing expenses in the first nine months of the year amounted to NIS 1.8 million, compared to income of NIS 9.4 million in the corresponding period last year.

The adjusted EBITDA in the third quarter of 2020 totaled approximately NIS 19.3 million, compared to approximately NIS 17.0 million in the corresponding quarter last year, a double-digit increase of 14% between the quarters. The increase is due to the higher revenue from services, and was partly offset, primarily by an increase in employee benefits and marketing. The adjusted EBITDA in the first nine months of 2020 totaled approximately NIS 69.2 million, compared to approximately NIS 47.8 million in the corresponding period in 2019, an increase of 45%.

Adjusted EBITDA as a percentage of total revenue from services in the third quarter of 2020 was 26.8%, compared to 25.8% in the corresponding quarter last year. Adjusted EBITDA as a percentage of total revenue from services in the first nine months of the year was 30.5%, compared to 24.7% in the corresponding period last year.

The adjusted net profit in the third quarter of 2020 totaled approximately NIS 5.6 million, compared to approximately NIS 7.2 million in the corresponding quarter last year, a decrease of 22% between the quarters. The reduced profit was due mainly to the transition to financing expenses (compared to income in the corresponding quarter). The adjusted net profit in the first nine months of 2020 totaled approximately NIS 26.7 million, compared to approximately NIS 18.2 million in the corresponding period last year, an increase of 47% between the periods.

Equity - At the end of September 2020, TASE's equity amounts to approximately NIS 620.1 million, an increase of 4% compared to the end of 2019. TASE has surplus equity over regulatory requirements of approximately NIS 292 million.

Liquidity - In the first nine months of the year, TASE created cash flows of approximately NIS 75.1 million from operating activities and its balances of cash, cash equivalents and short-term financial investments amounted to approximately NIS 342.7 million. TASE has surplus liquidity over regulatory requirements of approximately NIS 153 million.

This notification does not supersede the stated in the periodic financial statements of the Company for the third quarter of 2020, which contain the full and accurate information.

Click here for the link to the financial statements for the third quarter of 2020.

Click here for the link to the financial presentation of the third quarter of 2020:

Contact:
Yehuda van der Walde
EVP, CFO
Tel: +972-76-8160442
[email protected]

Orna Goren
Head of Communication and Public Relations Unit
Tel: +972-76-8160405
[email protected]

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SOURCE The Tel Aviv Stock Exchange Ltd.