JSE reports earnings growth of 8% as revenue hits R2.28 billion

The Johannesburg Stock Exchange on Thursday reported earnings growth of 8% to R904 million for year ended December 2018 – compared to a 9% decline in 2017, to R836 million.

“These results demonstrate the resilience of our multi-asset class business model, achieving a 1% increase in revenue to R2.28 billion (compared to a 5% decline in 2017 to R2.27 billion) and a 1% contraction in operating costs to R1.35 billion (compared to a 4% contraction in 2017 to R1.36 billion),” the JSE said.

Basic earnings per share (EPS) and headline earnings per share (HEPS) for continuing operations increased by 5% and 6%, respectively, to 1 056.5 cents and 1 056.2 cents.

Technology cost are 5% lower at R241 million (2017: R253 million) as a result of cost optimisation initiatives on software licences, and hardware maintenance and support.

Profit from operating activities climbed to R932.37 million, from R908.94 million, while the group declared a dividend of 655 cents per share, up 8%.

Looking ahead, the group said that it will continue to implement its ITaC project 1b and 1c, on 8 April 2019. “This will provide clients with robust trading and clearing technology in our equity derivatives and currency markets and introduce more sophisticated trading and risk management functionality, enabling us to reduce the cost of transacting in those markets over time.”

It said that it will also deliver meaningful new operating revenue through business lines not currently a substantial part of the JSE income.

“Operating as a market place for the trading of financial products for over a hundred years has uniquely positioned the JSE as a critical product and service provider to South Africa’s financial market. We recognise the responsibility this brings to ensure that we build better markets for our stakeholders. As we tackle 2019, we are very clear on our tactical and strategic choices for this year.

“We look forward to the delivery of our Integrated Trading and Clearing (ITaC) platform in April 2019 and are most grateful to our clients for working with us to this end. We also now have the opportunity to lift our heads and direct more of our corporate resources to new and innovative initiatives that both strengthen our operating platform to deliver better to our clients and allow us to grow across the value chain,” said Nicky Newton-King, CEO of the JSE.

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JSE reports earnings growth of 8% as revenue hits R2.28 billion