GuruFocus -
- Quarterly Revenue: ILS105.1 million, a 7% increase compared to the same quarter last year.
- Adjusted EBITDA: ILS45.8 million, a 29% increase from the previous year.
- Adjusted EBITDA Margin: Improved to 43.6% from 38.3% last year.
- Adjusted Net Profit: ILS25.7 million, a 26% increase compared to the previous year.
- H1 2024 Revenue: ILS213.4 million, an 11% increase from the previous year.
- H1 2024 Adjusted EBITDA: ILS29.4 million, a 19% increase from the previous year.
- H1 2024 Adjusted Net Profit: ILS53.5 million, a 15% increase from the previous year.
- Trading Volumes in Equities: 8% higher than the average daily trading volume for all of 2023.
- Bond Market Average Daily Volume: ILS4.5 billion, a 15% increase from 2023.
- Mutual Fund Market Cap: ILS375 billion, a 14% increase from the end of 2023.
- IPO Activity: Three companies completed an IPO in H1 2024 compared to one in 2023.
- Cash and Investments: ILS479 million at the end of Q2 2024.
- Bank Loan Balance: ILS124.9 million at the end of Q2 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tel Aviv Stock Exchange Ltd (TVAVF) reported a 13% increase in quarterly revenues compared to the same quarter last year.
- Adjusted EBITDA surged by 29%, with the EBITDA margin rising to 44%.
- The TA-125 Index rose by 3.5% in H1 2024, indicating resilience despite ongoing conflict.
- Trading volumes in equities and bonds increased significantly, with equities up by 8% and bond trading volumes up by 15% compared to 2023.
- The company is implementing a strategic plan to align trading days with global standards, potentially increasing international investor accessibility.
- Despite revenue growth, financing income decreased by 45% due to increased financing expenses from a bank loan.
- Employee benefit expenses increased by 6%, contributing to higher overall expenses.
- Computer and communication expenses rose by 17%, driven by additional costs for new systems.
- Marketing expenses decreased by 73%, indicating potential underinvestment in promotional activities.
- The ongoing conflict in Israel presents a challenging environment, potentially impacting future operations and investor confidence.
A: Ittai Ben-Zeev, CEO: We engaged a global consultant to analyze and benchmark our pricing against international standards. Although our new pricing is still below the global benchmark, it is a step towards narrowing the gap. We are currently reviewing feedback and will finalize the pricing soon.
Q: Can you provide details on the launch of the futures market and any incentives for exchange members?
A: Ittai Ben-Zeev, CEO: We are launching the futures market on September 1, focusing on three indices. We plan to offer market-making and volume rebate programs to encourage participation. The goal is to attract both global investors and local players to our derivatives market.
Q: What is the outlook for new and remote members joining the exchange?
A: Ittai Ben-Zeev, CEO: We have increased membership in recent years and are in discussions with potential new members, both locally and internationally. It will take a few more years to mature the market with all relevant players.
Q: Are there any changes to the spending outlook for the second half of the year, particularly regarding marketing expenses?
A: Ittai Ben-Zeev, CEO: Marketing expenses will increase in the second half of 2024, aligning with our budget. Despite the ongoing conflict, we are investing in digital tools and campaigns to engage the public and promote our offerings.
Q: Can you comment on the impact of the new market-making schemes on non-derivatives transactions?
A: Ittai Ben-Zeev, CEO: The new schemes are additional to existing ones and aim to boost liquidity. We have adjusted multiples to incentivize more trades, correlating future revenue with increased market activity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.