THE TEL-AVIV STOCK EXCHANGE REPORTS THE RESULTS OF THE FINANCIAL STATEMENTS FOR THE SECOND QUARTER AND THE FIRST HALF OF 2022

TASE Concludes the Second Quarter with a 36% Increase in EBITDA Compared to the Corresponding Quarter Last Year;

Quarterly Revenues Increased by 8% with Growth Across All TASE Activity

• Revenues in the second quarter of 2022 totaled NIS 91 million, an 8% increase compared to the revenues in the corresponding quarter last year.
• Expenses reduced by 3% in the second quarter of 2022 compared to the expenses in the corresponding quarter last year.
• The profit in the second quarter of 2022 totaled NIS 14 million, compared to NIS 12 million in the corresponding quarter last year, an increase of 18% between the quarters.
• The adjusted EBITDA grew by 36% in the second quarter of the year, totaling NIS 36 million, compared to NIS 26 million in the corresponding quarter last year.
• The average daily trading volume of shares in the first half of 2022 totaled NIS 2.5 billion, an increase of 33% compared to the trading volume in 2021.
• In the first half, a total of NIS 14.4 billion was raised on TASE in shares - representing 54% of the total amount raised in the full year 2021, which was a record year.
• TASE announces today the joining of Jump Trading - one of Europe's top-tier international trading entities, which operates as a provider of liquidity and trades on multiple exchanges around the world - as a remote member on TASE.

TEL AVIV, Israel, Aug. 8, 2022 /PRNewswire/ -- Ittai Ben Zeev, CEO of TASE (TASE: TASE), said today: "We are concluding another strong quarter, with notable growth in all core activities. TASE stands strong compared to leading global exchanges, as we are seeing a growing interest in TASE from international entities and investors alongside a growing involvement of the public, which is reflected, among others, in the impressive increase in the daily trading volumes of equity, which rose by 33% in the first half of the year, compared to last year. TASE continues to serve as an attractive and accessible capital raising channel, particularly in these challenging times, and is a significant growth engine for Israeli companies".

At the end of the first half of 2022, TASE remains strong compared to international exchanges. TASE's leading indices, TA-35 and TA-90 decreased by an average of 8.5%, a relatively moderate decrease compared to leading global indices. This is due, among others, to the macroeconomic conditions in Israel, the wide variety of securities listed on TASE and the balancing of the traded sectors, which place TASE well ahead of other exchanges. The TA Oil & Gas Index alone soared by 33% in the first half of the year, as a result of the surge in global oil and gas prices and the growing demand for the import of gas from Israel.

Equity trading volumes were particularly high in the first half of the year, with an average daily volume of NIS 2.5 billion, on the backdrop of the strong volatility in the market. This daily trading volume was 33% greater than the average trading volume in the full year 2021.

In the first half of the year, a total of NIS 14.4 billion was raised - representing 54% of the total amount raised in the full year 2021, which was a record year. This total includes 9 companies that performed IPOs in the first half of the year, raising a total of NIS 1.4 billion. Strong capital raising was also recorded in secondary offerings on the equity market, which totaled NIS 13 billion. Capital raising from the public on the corporate bonds market also remained strong at NIS 43 billion, representing close to 55% of the total capital raised from the public in the full year 2021. In total, 14 new companies joined TASE since the beginning of the year.

As part of the expansion of membership in TASE, with emphasis on international entities, TASE announces the joining of Jump Trading (Europe B.V.) as a remote member. Jump is among Europe's top-tier international trading entities, which operates as a provider of liquidity and trades on multiple exchanges around the world. The entry of international trading entities and the increase in the number of clients contributed to a steady demand for the connectivity, colocation and the London POP products, and TASE has recently upgraded the capacity of these services from London to Tel Aviv.

In addition, in the second quarter TASE started implementing its buyback plan for the acquisition of up to NIS 36 million over a period of six months. Accordingly, As of August 4, 2022, we repurchased 1,139 thousand shares, representing 1.11% of the outstanding shares of TASE for a total amount of 18.5 million Shekels. We will continue our purchases in the coming months until we complete the first stage of the buyback totaling 36 million Shekels.                                            

Highlights of the results for the second quarter and the first half of 2022:

Revenue in the second quarter of 2022 totaled NIS 91.0 million, compared to revenue of NIS 84.6 million in the corresponding quarter last year, an increase of 8%. Growth was recorded across all activity items, including an increase in trading and clearing commissions (13% rise), listing fees and levies (10% rise), Clearing House services (8% rise), and data distribution and connectivity (14% rise). It should be noted that, in the second quarter of 2021, following the signing of an agreement between TASE and the Ministry of Finance, one-time income in an amount of NIS 3.8 million was included with respect to listing fees for government bonds listed in the lending pool.

Revenue in the first half of 2022 totaled NIS 188.7 million, compared to revenue of NIS 163.0 million in the corresponding period last year, a 16% increase. The increase in revenue stemmed mainly from increase in all activities, including a 15% increase in revenue from trading and clearing commissions, which totaled NIS 75.3 million in the first half, a 30% increase in listing fees and levies, which totaled NIS 45.0 million, a 12% increase in Clearing House services, which totaled NIS 35.7 million, and data distribution and connectivity, which increased by 14% between the periods, totaling NIS 29.4 million.

Costs in the second quarter of 2022 totaled NIS 68.1 million, compared to costs of NIS 70.4 million in the corresponding quarter last year, a 3% decrease. The decrease in the costs is due mainly to a reduction in marketing expenses (5% of total costs) as a result of the timing of performance of campaigns, which was partly offset by an increase in employee benefits expenses and an increase in the depreciation expenses (2% of total costs).

Costs in the first half of 2022 totaled NIS 141.6 million, compared to costs of NIS 136.1 million in the corresponding period last year, a 4% increase. The increase in the costs is due mainly to an increase in employee benefits expenses (2% of total costs) as a result of salary updates and provisions for bonuses, as well as to an increase in depreciation and amortization expenses (1% of total costs).

Net financing expenses in the second quarter of 2022 totaled NIS 3.4 million, compared to net financing income of NIS 1.3 million in the corresponding quarter last year. The transition to financing expenses this quarter resulted from a negative return of 1.86% on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds, compared to a positive return of 0.73% in the corresponding quarter last year.

Net financing expenses in the first half of 2022 totaled NIS 8.6 million, compared to net financing income of NIS 1.5 million in the corresponding period last year. The transition to financing expenses in the first half of the year resulted from a negative return of 4.25% on the Company's investments in marketable securities' portfolios comprising Israeli Government bonds, compared to a positive return of 0.75% in the corresponding period last year.

Net tax expense in the second quarter of 2022 totaled NIS 5.2 million, compared to NIS 3.4 million in the corresponding quarter last year. The increase in expenses was due to the higher pre-tax profit and the reduction in the fair value of the Company's investments in government bonds for which deferred taxes were not created.

Net tax expense in the first half of 2022 totaled NIS 9.6 million, compared to NIS 6.6 million in the corresponding period last year. The increase in the quarter and the half-year was due to the higher pre-tax profit and the reduction in the fair value of the Company's investments in government bonds for which deferred taxes were not created.

The profit in the second quarter of 2022 grew by 18%, totaling NIS 14.2 million, compared to profit of NIS 12.1 million in the corresponding quarter last year. The increase in profit is due to an increase in revenue from services and a decrease in costs, which was offset by the transition to financing expenses and an increase in the tax expense, as described above.

The profit in the first half of 2022 grew by 33%, totaling NIS 28.9 million, compared to NIS 21.7 million in the corresponding period last year. The increase in profit is due to an increase in revenue from services, which was partly offset by the rise in expenses, a transition to financing expenses and an increase in the tax expense.

The adjusted EBITDA in the second quarter of 2022 grew by 36% compared to the corresponding quarter last year, totaling NIS 35.8 million, compared to NIS 26.2 million. The increase is due to an 8% rise in revenue as a result of the increase across all activity items and a 4% decrease in expenses, primarily with respect to the timing of marketing costs.

The adjusted EBITDA in the first half of 2022 totaled NIS 72.6 million, compared to NIS 50.8 million in the corresponding period last year, a 43% increase. The increase is due to a 16% rise in revenue, primarily as a result of the higher volume of activity, which was offset by a 3% increase in expenses, primarily employee benefits costs.

The adjusted profit in the second quarter of 2022 totaled NIS 14.3 million, compared to NIS 12.3 million in the corresponding quarter last year, an increase of 16%. The increase is due to an 8% rise in revenue as a result of the higher volume of activity and to a 3% decrease in expenses, primarily with respect to the timing of marketing costs, and was offset by a transition to financing expenses as a result of a negative return on the Company's investments in held-for-trade financial assets and an increase in the tax expense.

The adjusted profit in the first half of 2022 totaled NIS 29.2 million, compared to NIS 22.2 million in the corresponding period last year, a 31% increase. The increase is due to a 16% rise in revenue as a result of the higher volume of activity, which was offset by a 3% increase in expenses, primarily with respect to employee benefits and depreciation, and the transition to financing expenses as a result of the negative return on the Company's investments in held-for-trade financial assets and an increase in the tax expense as a result of losses on securities for which no deferred taxes were created.

TASE's equity as of June 30, 2022 totaled NIS 676.8 million, a 2% increase compared to December 31, 2021. The increase in the equity is due mainly to the profit of NIS 28.9 million in the first half of 2022, other comprehensive income of NIS 12.9 million and receipts from the sale of shares within the framework of the TASE ownership restructuring in an amount of NIS 5.5 million, less a dividend paid in an amount of NIS 22.7 million and buyback of company shares in an amount of NIS 9.9 million.

Click here for the link to the full financial statements for the second quarter of 2022

Click here for the link to the financial presentation of the second quarter of 2022

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

Contact:

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

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

SOURCE The Tel Aviv Stock Exchange Ltd.