Tel Aviv Stock Exchange releases results of third quarter 2021 financial statements

TEL AVIV, Israel, 22 November 2021 / PRNewswire / –Ittai Ben Zeev, CEO of TASE, said today: “TASE continues its ascent and in the third quarter of the year again recorded growth on all key performance indicators – revenue, profit and EBITDA, despite the fact that it there were 10% fewer trading days this quarter compared to the corresponding quarter in 2020.

In the third quarter, the IPO market continued its bullish momentum, with 21 IPOs, more than half of which by technology companies. We are extremely proud to be the world’s leading stock exchange *, just behind China, in the relationship between new businesses and existing businesses. This reflects the revival of the capital market and the abundance of opportunities it offers to Israeli investors and foreign investors, who show an ever-growing interest in the market. New IPOs lifted 2 billion shekels during the quarter and, for the first time, the total market capitalization of stocks listed on TASE broke the trillion shekels mark. Another all-time high was set in the third quarter, when each company’s individual market capitalization on TA-125 exceeded 1 billion shekels.

We anticipate further growth in activity in the local capital market due to recent actions taken by the government of Israel, including the dual listing of foreign currency government bonds on TASE and the phasing out of affected bonds. I am convinced that an economic policy that aims to stimulate Israeli entrepreneurship and local businesses will further increase public participation in the success of the Israeli economy, thereby improving its finances. “

Tel Aviv Stock Exchange Ltd. (LEVEL: LEVEL) today announced its financial results for the third quarter of the fiscal year ended September 30, 2021.

Highlights of the results:

The Company’s income from trading and clearing is affected, among other things, by the number of trading and clearing days. In the third quarter of 2021, there were 56 trading days, compared to 62 days in the corresponding quarter of last year (a decrease of 10%). In the first nine months of 2021, there were 179 trading days, compared to 182 days for the corresponding period last year, a decrease of 2%. In the fourth quarter of 2021, there are 65 days.

Revenue in the third quarter of 2021 totaled NIS 75.0 million, compared to the turnover of NIS 72.0 million in the corresponding quarter of last year, an increase of 4%. The increase in income is mainly explained by the increase in income other than trading and clearing income (7% of total income) and was partially offset by a decrease in trading and clearing income (3% of total income). total) which is mainly explained by fewer trading days this quarter compared to the corresponding quarter last year.

TASE saw a double-digit increase in all other revenue items:

Income from trading and clearing commissionstotaled 28.7 million shekels, an 8% drop from the corresponding quarter last year, resulting from the 10% reduction in trading days due to the Jewish New Year holiday calendar. The decrease was partially offset by an increase in the effective commission rate.

An increase of 14%, for an amount of 16.9 million shekels, was recorded as income from listing duties and taxes, resulting from an increase in the number of companies and funds paying an annual levy and the collection of new levies.

Revenue from clearing house servicesincreased by 14% to an amount of 16 million shekels, which stems from the increase in revenues from custody fees, given the increase in the value of assets held in TASE-CH, which contributed 11% to the total increase in revenues from the services of the Clearinghouse . Another increase was recorded in revenues from Clearing House services to TASE members. Data distribution and connectivity increased by 10%, totaling 12.9 million shekels. Most of the increase is due to a 5% increase in revenue from data distribution to external customers Israel, mainly due to a price list change that took effect at the start of the second quarter of 2021. In addition, an increase in revenue from derivative data distribution and revenue from connectivity services contributed an additional 3% each , increased income.

Costs in the third quarter of 2021 totaled approximately 64.4 million shekels, compared to the costs of 64.1 million shekels in the corresponding quarter of last year, an increase of 1%.

Financing income, net in the third quarter of 2021 totaled 1.8 million shekels, compared to the financing expenditure of 0.9 million shekels in the corresponding quarter of last year. The increase in financing income is due to a difference in the return on the Company’s investments in Israeli government bonds managed in marketable securities portfolios, which was 1.0% this quarter compared to a return negative 0.4% in the corresponding quarter of last year.

Profit in the third quarter of 2021 totaled 9.6 million shekels, compared to 5.4 million shekels in the corresponding quarter of last year, an increase of 79%. The increase in profit is explained by the increase in revenues from services other than trading and clearing and by the increase in financing revenues, as described above.

Adjusted EBITDA for the third quarter of 2021 totaled 22.8 million shekels, compared to 19.3 million shekels in the corresponding quarter of last year, an increase of 18%. The increase is mainly due to higher revenues from services, excluding trading and clearing.

Adjusted earnings for the third quarter of 2021 totaled 9.8 million shekels, compared to 5.6 million shekels in the corresponding quarter of last year, an increase of 74%. The increase is mainly due to the increase in service revenues, excluding negotiation and compensation, and to the increase in financing revenues, as described above.

TASE further reports today that average trading volumes in the third quarter of 2021 were similar to the average trading volumes for the corresponding quarter of last year, as opposed to high trading volumes and sharp fluctuations in value. of assets in the first half of 2020, due to the effect of the uncertainty that reigned on the market against the backdrop of the coronavirus epidemic at the time, which was different from those recorded in the first half of 2021. Changes in morbidity rates during the third quarter of 2021 did not significantly affect the trends described above regarding the value of assets traded on TASE and trading volumes.

At its meeting today, the TASE Clearing House Board of Directors approved the Phoenix join TASE as a “Custodial Member”, which will allow it to carry out transactions directly on the TASE lending platform. The Phoenix has a market capitalization of 10 billion shekels, the highest listed insurance company on TASE, and manages assets of nearly 300 billion shekels. The Phoenix is the first Israeli institute to join TASE as a depository member. A custodian member is a member who manages its clients’ assets on TASE and receives clearing and custody services from TASE, but cannot trade on TASE.

Click on here for the link to the full financial statements for the third quarter of 2021.

Click on here for the link to the financial presentation for the third quarter of 2021.

This announcement is not a substitute for reading the Company’s periodic reports for the third quarter of 2021, in which complete and precise information is presented.

* According to the World Federation of Exchanges (WFE) at the end of August 2021.

Contact:

Yehuda van der Walde Executive Vice President, Chief Financial Officer
+ 972-76-8160442
[email protected]

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

SOURCE Tel Aviv Stock Exchange Ltd.