JSE Delivers Strong 2014 Financial Results Johannesburg, 05 March 2015
The JSE delivered a strong financial performance for 2014 driven by pleasing revenue growth in core areas of our business.Our 2014 performance was delivered against the backdrop of a declining economy and dramatically increased regulatory demands. Against this background, we work on being a centre of excellence on which our clients can rely.Financial ReviewGroup earnings after tax for 2014 increased by 25% to R634 million (2013: R507 million), with operating revenue growing by 13% (2013: 12%) to R1.8 billion (2013: R1.6 billion). This performance is underpinned particularly by good growth in annuity revenue from listed companies (with 24 new listings in 2014) and products as well as notable cost management.
The following areas also made healthy contributions to revenue:
• Equity Market, where billable value traded grew by 7% year-on-year resulting in an 11% increase in revenue to R426 million (2013: R385 million);
• Post-Trade Services, where a combination of billable value traded growth and rebates given in the prior year resulted in growth of 20% to R299 million (2013: R249 million);
• Market Data where revenue grew 15% to R203 million (2013: R177 million) as a result of the growth in the number of data terminals and increased passive tracking; and•
In addition, new revenue lines in colocation and issuer services generated R9 million and R2 million respectively.Total operating expenses increased by 5.5% to R1.14 billion (2013: R1.08 billion). Personnel, technology and technology related costs (depreciation) continue to be the principal components of our largely fixed cost base. As we continue to invest in upgrading our technology to enable us to offer world class services to our clients, the technology component of our costs will increase over time, although we are clearly mindful of the need to keep a tight handle on these costs.
Group earnings before interest and tax (EBIT) increased by 22% (2013: 42%) to R704 million (2013: R578 million). The earnings per share (EPS) rose to 742.4 cents (up 25%) and headline earnings per share (HEPS) to 735.0 cents (up 14%) respectively.This performance, which is net of a rebate to Equity market clients for their back office fees, enabled the JSE to declare a total dividend of R417 million (2013: R348 million) or 480 cents per share (2013: 400 cents), 20% above the total dividend paid in 2013 and a record high dividend payout.We end the year in a solid cash position, with R1.6 billion in cash (2013: R1.4 billion). Ongoing investment in our business remains crucial and we continue to apply cash to strategic investments which will position the JSE to better serve its clients and, in so doing, for long term sustainability.Looking forwardAs we look forward to 2015, the
JSE’s top priorities are progressing the move of the Equity Market to a three-day settlement cycle (T+3) and to the integration of our trading and clearing platforms. Much of our corporate energy and investment will be dedicated to progressing these. At the same time, we are conscious that the financial market landscape is changing fast and so we continue to work on initiatives that will provide compelling and cost effective services to our clients.
he Johannesburg Stock Exchange is based in South Africa where it has operated as a market place for the trading of financial products for 125 years. It connects buyers and sellers in equity, derivative and debt markets. The JSE is one of the top 20 exchanges in the world in terms of market capitalisation and is a member of the World Federation of Exchanges (WFE). The JSE offers a fully electronic, efficient, secure market with world class regulation, trading and clearing systems, settlement assurance and risk management. www.jse.co.za
Issued by:Thato MapuleH+K Strategies South Africa Tel: +27 11 463 2198 Email: firstname.lastname@example.org
JSE contact: Pheliswa Mayekiso Head of Media Relations Tel: +27 11 520 7495 Email: email@example.com