The Tel-Aviv Stock Exchange Reports the Results of the Financial Statements for the First Quarter Of 2024

Record Revenue of NIS 108 million in the Quarter, an 8% Increase, With Growth Across All Activities

EBITDA Increases By 12% to NIS 49 million

• Revenue in the first quarter of the year NIS 108.3 million, compared to revenue of NIS 100 million in the corresponding quarter last year, an increase of 8%. 
• The adjusted EBITDA in the first quarter of 2024 increased by 12%, totaling NIS 48.6 million, compared to NIS 43.5 million in the corresponding quarter last year.
• The adjusted profit in the first quarter totaled NIS 28 million, compared to NIS 26 million in the corresponding quarter last year, an increase of 7%.
• The market cap of the equity market at the end of the first quarter of 2024 reached NIS 1,155 billion, 9% greater than the market cap at the end of 2023, this as a result of the increase of TASE's equity indices. 
• Significantly higher daily trading volumes this quarter, with a 7% increase in shares and 18% in bonds compared to the average daily trading volume in 2023.

Ittai Ben Zeev, CEO of TASE, said today: "TASE is reporting strong results for the first quarter, with an all-time high in revenues and adjusted EBITDA. The results for the quarter show that even during this challenging wartime period in Israel, TASE maintains its stability and resilience and continues to achieve organic growth of all core operations. We will move forward on the path of further growth for TASE while achieving the goals we've set for ourselves, in accordance with our strategic plan for the coming years, and strengthening our international profile.

Nevertheless, we do not operate in a void - now more than ever it is crucial that the Government proactively encourage investments in the Israeli capital market, which is a key component of Israel's economic and national resilience. Decisive actions must be taken to remove barriers and increase the attractivity of investment in Israel - to the public, to institutions managing the Israeli public's funds and, in particular, to global investors. Israel is an economic wonder, but its strength in the long run is dependent on its continued global and economic interaction. We must strive to reinforce the bridges that we have built and diligently continue to build with the global markets."

TEL AVIV, Israel, May 22, 2024 /PRNewswire/ --  The Tel-Aviv Stock Exchange Ltd. (TASE: TASE) today announced its financial results for the first quarter ended March 31, 2024.

In the first quarter of 2024, despite the country still being in the midst of the war, the market showed resilience, and the TA-35 and TA-90 indices posted a positive return of 8% and 11%, respectively, compared to an increase of 6% and 10% in the Dow Jones and S&P 500 indices in the United States. Rising equity prices also characterized most sectoral indices, with the TA-Retail Index heading the list with a 24% increase. The market cap of the equity market at the end of the quarter was NIS 1,155 billion, 9% greater than the market cap at the end of 2023, this as a result of the increase in TASE's equity indices.

Trading volumes in the main trading channels increased significantly in the first quarter compared to 2023.

In the equity market, trading volumes were 7% higher than the average daily trading volume for all of 2023, and averaged NIS 2.1 billion a day, despite the high volatility and high volumes that characterized trading in 2023 stemming from the unprecedented events that took place last year.

Two new companies made IPOs on TASE in the first quarter of 2024, compared to just one company in the whole of 2023. Equity offerings raised NIS 2.5 billion, similar to the amount raised in the corresponding quarter last year, but more than twice that raised in the previous quarter and in May, one more company made an IPO.

In the bond market, greater activity was recorded in all types of bonds. The daily trading volume in government bonds averaged NIS 3.4 billion, 18% more than in 2023, with shekel bonds recording the greatest increase. The average daily trading volume in corporate bonds reached NIS 1.2 billion, a 14% increase compared to 2023. This upswing is due, inter alia, to the Ministry of Finance's extensive debt raising activity in light of the ongoing war and the increase in the cumulative deficit.

The total amount of debt raised by the Ministry of Finance in Israel and abroad in bond offerings totaled NIS 80.6 billion in the first quarter, compared to NIS 59 billion raised in the previous quarter. Most of the debt raised, an amount of NIS 51.9 billion, was raised in bond issuances on TASE, compared to NIS 36 billion in the previous quarter. In addition, the Ministry of Finance raised a record NIS 28.7 billion at the beginning of March in an overseas issuance, compared to NIS 23 billion in the previous quarter. This issuance attracted record demand, the highest in the history of the State of Israel, five times the amount issued and with the participation of about 400 different investors from 36 countries around the world.

In the corporate bonds market - corporate debt issuances raised NIS 21.8 billion, slightly less than the NIS 21.9 billion raised in the corresponding quarter last year and the NIS 25.4 billion raised in the previous quarter.

The trading volumes of T-bills also increased, averaging NIS 1.9 billion a day, 38% higher than the average daily trading volume in 2023.

We are also seeing an increase in the value of the public's holdings in foreign funds traded on TASE, which at the end of the first quarter stood at NIS 8.8 billion, NIS 2.3 billion higher than the value at the end of 2023.

Continued implementation of the strategic plan for the development and upgrading of the Israeli capital market and enhancement of its global accessibility

Strengthening TASE's international profile

Even at this challenging time, TASE continues to carry out and implement the strategic plan in the field of strengthening its international profile. Within this framework, TASE, in cooperation with the Israel Securities Authority and the Bank of Israel, published a call for public comments in relation to the transition to trading on Fridays as is customary throughout the world, following one of two alternatives: trading on Sunday (opening auction close to noon) through Friday, or trading on Monday through Friday. TASE strongly believes that aligning the trading days with the rest of the world will help improve international investors' access to the local capital market and to the Israeli companies.

At the beginning of April, the international trading group, Jump Trading, began operating as a TASE member. Jump Trading is one of Europe's leading algorithmic trading operators and serves as a market maker and a liquidity provider on the world's largest stock exchanges.

Highlights of the results for the first quarter of 2024:

• Revenue in the first quarter of 2024 totaled NIS 108.3 million, compared to revenue of NIS 100.0 million in the corresponding quarter last year, an increase of 8.3%. Most of the increase in revenue is due to revenue from data distribution and connectivity services, which contributed a 5.5% increase. In addition, revenue from trading and clearing, revenue from listing fees and levies and revenue from Clearing House services contributed, each, 1% to the increase in revenue compared to the corresponding quarter last year.
• Costs in the first quarter of 2024 totaled NIS 75.4 million, compared to costs of NIS 70.0 million in the corresponding quarter last year, an 8% increase. The increase in costs is due mainly to an increase of 2.6% in computer expenses and to cyber-related expenses. Additionally, employees' non-utilization of vacation days, as a result of the war, increased expenses by NIS 1 million. The costs also include the new equity compensation plan.
• Net financing income in the first quarter of 2024 totaled NIS 1.4 million, compared to net financing income of NIS 2.5 million in the corresponding quarter last year, a 43.1% decrease. Financing income in the quarter increased due to interest income on the deposits. At the same time, financing expenses increased as a result of the loan obtained at the end of 2023, resulting in reduced net financing income.
• The adjusted EBITDA in the first quarter of 2024 totaled NIS 48.6 million, compared to NIS 43.5 million in the corresponding quarter last year, an increase of 12%. The increase is due to an increase in profit before financing, as described, above, in an amount of NIS 2.9 million, eliminating share-based payment expenses and depreciation expenses in an amount of NIS 2.1 million.
• The adjusted profit in the first quarter of 2024 totaled NIS 27.8 million, compared to NIS 26.1 million in the corresponding quarter last year, an increase of 7%. The increase is due to the adjustment of the increase in costs with respect to share-based payments.
• Equity and dividend - Equity totaled NIS 630.7 million at the end of the first quarter, a 57% increase compared to the end of 2023. Most of the increase in equity stems from the signing, last December, of the transaction for the sale of the banks' shares to local and international investors, the receipts from which, totaling NIS 242.5 million, were carried directly to equity and earmarked for developing investments in TASE's infrastructure.
  As part of said transaction, TASE distributed a special dividend in an amount of NIS 231 million (the difference between the dividend and the amount received from the sale of the shares added another NIS 11 million to TASE's equity). On top of this, TASE distributed an additional dividend of NIS 42 million during March, representing 50% of TASE's 2023 profits.

Click here for the link to the full financial statements for the first quarter of 2024>

Click here for the link to the financial presentation of the first quarter of 2024>

This notification does not supersede the stated in the periodic financial statements of the Company for the first quarter of 2024, which contain the full and accurate information.

Seasonality

The revenue of the Company from trading and clearing is affected, inter alia, by the number of trading and clearing days. In the first quarter of 2024, there were 63 trading days, compared to 64 in the corresponding quarter last year.

Presented below is information on the quarterly breakdown of trading days:

Contact:

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

SOURCE The Tel Aviv Stock Exchange Ltd.