The Tel-Aviv Stock Exchange Reports its Results for the Third Quarter of 2024

Rhea-AI Summary

The Tel-Aviv Stock Exchange (TASE) reported strong Q3 2024 results with revenue reaching NIS 109 million, up 14% year-over-year. Adjusted EBITDA increased 17% to NIS 45 million, while net profit grew 43% to NIS 26 million. Trading volumes showed significant growth, with shares up 7% and bonds up 20%. The TA-125 index rose 12% through September, while market cap reached NIS 1,184 billion. Despite ongoing war challenges, TASE demonstrated resilience with increased trading volumes and debt raising activities. The exchange launched new initiatives including a Block Trade Facility and TASE+, an AI-based investment analysis tool.

Positive

• Revenue increased 14% YoY to NIS 109 million
• Net profit grew 43% to NIS 26 million
• Adjusted EBITDA rose 17% to NIS 45 million
• Trading volumes increased: shares up 7%, bonds up 20%
• Equity increased 71% to NIS 686.7 million
• Foreign investors made net purchases of NIS 3 billion in Q3

Negative

• Increased costs due to higher payroll, computer, and marketing expenses
• Growing cumulative deficit requiring increased debt raising
• Underperformed S&P500 Index growth (12% vs 21%)

Quarterly revenue reached NIS 109 million, an increase of 14%;
EBITDA increased by 17% to NIS 45 million;
43% growth in net profit to NIS 26 million

• Revenue in the third quarter of the year reached a record NIS 109 million, compared to NIS 95 million in the corresponding quarter last year, an increase of 14%.
• Adjusted EBITDA in the third quarter of 2024 increased by 17%, totaling NIS 45 million, compared to NIS 38 million in the corresponding quarter last year.
• Net profit in the third quarter of the year totaled NIS 26 million, compared NIS 18 million in the corresponding quarter last year, an increase of 43%.
• Daily trading volumes were significantly higher this quarter, with a 7% increase in shares and 20% in bonds, compared to the average daily trading volumes in the corresponding quarter last year.

Ittai Ben Zeev, TASE CEO, said today:

"We conclude the third quarter with strong results that demonstrate the resilience of the Israeli economy. These results are the fruit of the ongoing implementation of TASE's strategic plan, which focuses on aligning our operations with international standards, investing in technological advancement, and developing new financial products to enhance accessibility for investors.

Ben Zeev added: "Despite the ongoing war, TASE continues to demonstrate its strength as a crucial platform for raising equity and debt financing for both public companies and the Government of Israel., which is critical to the vitality and strength of the economy in these challenging times. Now, more than ever, it is important to generate growth catalysts that strengthen the local capital market, encourage international investment in the Israeli market and create incentives for local investments to facilitate continued growth and economic resilience."

TEL AVIV, Israel, Nov. 20, 2024 /PRNewswire/ -- The Tel-Aviv Stock Exchange Ltd. (TASE: TASE) today announced its financial results for the third quarter ended September 30, 2024.

Key trends and data in the capital market in the first nine months of 2024

The Israeli capital market continues to exhibit substantial resilience despite the ongoing war and the downgrading of Israel's sovereign credit rating in recent months.

TASE's leading indices maintain an upward trend: the TA-125 index increased by 12% from the beginning of the year through the end of September, similar to the increase in the Dow Jones Index and outperforming the 9% increase in the MSCI Europe Index, but less than the 21% increase in the S&P500 Index. Since October to date, TASE's leading indices have continued to climb.

The market cap of the equity market at the end of September reached NIS 1,184 billion, a 12% increase over year-end 2023, with this resulting from the increase in TASE's equity indices.

Trading volumes in the main trading channels increased significantly in the first nine months of 2024 compared to 2023. In the equity market, trading volumes were 5% higher than the average daily trading volume for all of 2023, and averaged NIS 2.1 billion a day. The average daily trading volume of bonds totaled NIS 4.4 billion, 12% greater than the average daily trading volume in 2023. The increase in the trading volumes was driven primarily by government shekel bonds, the average daily trading volume of which amounted to NIS 2.3 billion, compared to an average daily trading volume of NIS 1.9 billion in 2023, with this resulting from the surge in bond offerings by the Ministry of Finance.

In view of the ongoing war and the growing cumulative deficit, the Ministry of Finance continued to raise debt in the third quarter, and in the first nine months raised debt in a total amount of NIS 171 billion, compared to NIS 57.8 billion raised in the corresponding period last year. NIS 142.4 billion of said amount was raised on TASE.

The average daily trading volume of corporate bonds totaled NIS 1.1 billion, 6% higher than the average daily trading volume in 2023. T-bills also recorded substantial trading volumes, at a daily average of NIS 1.5 billion, 5% higher than the average daily trading volume in 2023.

Corporate bonds continue to serve as a significant channel for debt raising by public companies - during January-September 2024, the business sector raised debt totaling NIS 87.4 billion, 31% over the total of NIS 66.8 billion raised in the corresponding period last year.

Creations and redemptions of mutual funds reached an average daily volume of NIS 1.8 billion, 29% greater than the average daily volume in 2023. The market cap of the mutual funds at the end of the period reached NIS 405 billion, 23% greater than the market cap at the end of 2023, with this resulting from acquisitions of mutual funds and the appreciation of the mutual funds' assets on TASE.

Renewed international interest in the local capital market, with foreign investors resuming equity purchases on TASE in July. At the end of the third quarter of 2024, their net purchases totaled NIS 3 billion, with this being in addition to ongoing investments by institutions investors, which have made net equity purchases of NIS 4.3 billion since the beginning of the year.

Enhancement of business operations and promotion of core activities

In the trading sphere, in early November TASE launched a Block Trade Facility for the pre-arranged and protected execution of large-scale transactions, which will be published instantaneously in a transparent and accessible manner, in alignment with global standards. In addition, the second development phase of the new OTC system was completed, improving its compatibility with the needs of foreign investors and with international standards. In August, TASE launched a market-making reform across all securities, with emphasis on shares included in the TA-90 index, which, for the first time, rewards market makers for liquidity, large quantities and tighter spreads.

In September, an agreement was signed for the launch of 6 new exclusive indices with Analyst Mutual Funds, and to date TASE has exclusivity agreements in place with 4 leading manufacturers for the launch of more than 20 new indices in the coming months.

In the derivatives market, in September, TASE launched the futures market on the leading flagship indices, TA-35, TA-90 and TA-Banks5. Within this framework, a first market maker was appointed to ensure liquidity and trade volume, which enable investors to benefit from more competitive prices. In addition, the reduction of the multipliers in the derivatives market for options on the TA-35, TA-Banks5 and TA-125 indices and for foreign currency options, increased the average daily trading volumes by 7% compared to 2023. The average daily trading volume of weekly options increased to 52 thousand units, the highest volume recorded since their launch and 9% greater than the average daily trading volume in 2023. At the same time, the average daily trading volume of the monthly options totaled 65 thousand units, 6% greater than the average daily trading volume in 2023.

In October, TASE launched TASE+, an innovative AI-based tool for monitoring and analyzing capital market investments in Israel and abroad. This free and user-friendly platform, available in English and Hebrew, allows the public to gain capital market experience by managing a virtual data-based investment portfolio. The move is aligned with TASE's strategy of enhancing its direct engagement with the public, removing trading barriers and improving the public's access to information. To date, more than 30,000 investment portfolios have been created, and new portfolios are being created daily.

Highlights of the results for the third quarter of 2024:

Revenue in the third quarter of 2024 totaled NIS 109 million, compared to NIS 95.5 million in the corresponding quarter last year, an increase of 14%. The increase in revenue is due mainly to an increase in revenue from data distribution and connectivity services, as a result of the increased volume of activity and the impact of the updated index-usage fees, this in addition to the increase in trading and clearing commissions as a result of the increase in the trading volumes and in the volume of creations/redemptions of mutual fund units.

Costs in the third quarter of 2024 totaled NIS 79 million, compared to NIS 72.1 million in the corresponding quarter last year. The higher costs are due mainly to the increase in payroll expenses, computer and communication expenses, and marketing expenses.

Net financing income in the third quarter of 2024 totaled NIS 4 million, compared to net financing income of NIS 2 million in the corresponding quarter last year, an increase of 103%. Financing income in the quarter increased due to interest income on the deposits and gains on financial assets. The increase in the income in the quarter was partly offset by the increase in financing expenses as a result of a bank loan obtained at the end of 2023.

The profit in the third quarter of 2024 totaled NIS 26 million, compared to NIS 18.2 million in the corresponding quarter last year, an increase of 43%. The increase in profit was due mainly to the increase in revenue, less the increase in costs and in tax expenses.

The adjusted EBITDA in the third quarter of 2024 totaled NIS 45.1 million, compared to NIS 38.4 million in the corresponding quarter last year, an increase of 17%. Most of the increase is due to the NIS 6.5 million increase in profit before financing.  

The adjusted profit in the third quarter of 2024 totaled NIS 27.2 million, compared to NIS 20.1 million in the corresponding quarter last year, an increase of 35%. Most of the increase is due to an increase in revenue from services, less the increase in costs and in tax expenses.

Equity as of September 30, 2024 totaled NIS 686.7 million, compared to NIS 401.7 million as of December 31, 2023, an increase of 71%. Most of the increase is due to an increase in a capital reserve as a result of receipts from the sale of shares within the framework of the TASE ownership restructuring, in an amount of NIS 242.5 million. 

Seasonality

The revenue of the Company from trading and clearing is affected, inter alia, by the number of trading and clearing days. In the third quarter of 2024, there were 65 trading days, compared to 61 days in the corresponding quarter last year, a 6.6% increase. In the first nine months of 2024 there were 185 trading days, compared to 183 days in the corresponding period last year, a 1.1% increase. Presented below is information on the quarterly breakdown of trading days:

Year	First quarter	Second quarter	Third quarter	Fourth quarter	Total
2023	64	58	61	66	249
2024	63	57	65	60	245

 

 

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

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

Contact:
Orna Goren
Head of Communication and Public Relations Unit
Tel: +972 76 8160405
tase.ir@tase.co.il

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SOURCE The Tel Aviv Stock Exchange Ltd.

FAQ

What was TASE's revenue growth in Q3 2024?

TASE reported a 14% year-over-year revenue growth in Q3 2024, reaching NIS 109 million compared to NIS 95 million in Q3 2023.

How much did TASE's net profit increase in Q3 2024?

TASE's net profit increased by 43% in Q3 2024, reaching NIS 26 million compared to NIS 18 million in the same quarter last year.

What was the trading volume increase for TASE in Q3 2024?

TASE reported a 7% increase in share trading volumes and a 20% increase in bond trading volumes compared to Q3 2023.

How did the TA-125 index perform through September 2024?

The TA-125 index increased by 12% from the beginning of the year through the end of September 2024.