TEL AVIV, Israel, May 24, 2021 / PRNewswire / – Ittai Ben Zeev, CEO of TASE, said today: “The restoration of financial certainty and the expected gradual recovery of economic operations in the first quarter following the vaccination campaign have resulted in an increasing number of IPOs of new companies, particularly in the high technology, with high trading volumes and soaring prices in all major indexes. We are delighted that TASE is now able to more accurately and correctly reflect the Israeli economy. Our mission is to encourage more Israeli companies, especially large technology companies, to join TASE and enable more Israeli investors to participate in the success of the Israeli economy through TASE. “
Tel Aviv Stock Exchange Ltd. (TASE: TASE) today announced its financial results for the first quarter ended March 31, 2021:
Highlights of the results:
First quarter 2021 revenue amounted to 78.4 million NIS, compared to the income of 81.2 million NIS in the corresponding quarter of last year, a decrease of 3%. The decrease is mainly due to the 14% reduction in trading and clearing income, which amounted to NIS 34.1 million. Most of the aforementioned reduction comes from lower trading volumes of stocks and corporate bonds and lower clearing of mutual funds compared to the corresponding period last year, at during which they were relatively high mainly due to the coronavirus outbreak and the resulting volatility. in the financial markets.
The reduction in revenue resulting from lower trading volumes was partially offset by the increase in revenue from other sources. Income from registration fees and direct debits increased by 10% due to the multiplicity of prospectuses, i.e. 16.4 million NIS. Revenues from data distribution and connectivity services increased by 9%, totaling NIS 15.1 million.
Costs in the first quarter of 2021 amounted to 65.7 million NIS, compared to costs of NIS 63.6 million in the corresponding quarter last year, an increase of 3%. The increase in costs is mainly due to social charges related to salary updates and an increase in depreciation and amortization for projects activated between periods.
Net financial income in the first quarter of 2021 amounted to 0.1 million NIS, compared to the net financing costs of 4.4 million NIS in the corresponding quarter of last year. The transition to financing income during the quarter resulted from positive returns of 0.02% on the Company’s investments in Israeli government bonds managed in marketable portfolios, compared to negative returns of 2.1 % in the corresponding quarter of last year, due to the implications of the coronavirus outbreak on trading on TASE and falling stock prices.
Profit in the first quarter of 2021 totaled 9.7 million NIS, compared to 10.2 million NIS in the corresponding quarter of last year, a decrease of 6%. The decrease in profit is due to lower service revenues, primarily trading and clearing services revenues, and higher charges, which were partially offset by the shift to financing revenues, as described above .
Adjusted EBITDA for the first quarter of 2021 totaled 24.6 million NIS, compared to NIS 28.9 million in the corresponding quarter last year, a decrease of 15% resulting from lower revenues, mainly related to trading and clearing operations, and higher costs, mainly social charges.
Adjusted profit for the first quarter of 2021 totaled 9.9 million NIS, compared to 10.6 million NIS in the corresponding quarter of last year, a decrease of 7% resulting mainly from lower revenues, mainly from trading and clearing, higher costs, mainly from employee benefits and depreciation, which were largely offset by the shift to fundraising revenues.
TASE notes that the success of the vaccination campaign alongside the end of the crisis and the reduction of the unemployment rate was well reflected on TASE. Data for the quarter shows a growing number of IPOs, especially in the high-tech sector, with strong trading volumes and price spikes in all major indexes. The upward trend of new IPOs accelerated in the first quarter, with 33 IPOs, which increased 3.1 billion NIS, mainly in the high-tech sector, more than the number of IPOs in 2020 and the highest quarterly number of IPOs since 1993. Since the end of the first quarter to date, 9 new companies have joined TASE, which is the total number of new companies that have joined TASE since the start of 2020 at 73. As of the date of the report, the shares of 490 companies are listed in TASE.
It is further noted that, in April, TASE signed an agreement with the UAE for the rental of a floor in the TASE building which will be used as an embassy, which is expected to open in the coming weeks.
This announcement does not replace reading the company’s periodic reports for the first quarter of 2021, in which complete and accurate information is presented.
Yehuda van der Walde
Executive Vice President, Chief Financial Officer
Phone: + 972-76-8160442
Head of Communication and Public Relations Unit
Phone: + 972-76-8160405
SOURCE Tel Aviv Stock Exchange Ltd.