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Warsaw Stock Exchange Group generated record-high revenues of PLN 284 million in 2013, an increase of +3.6%

TAG'S: GPW, Finance (other)

Consolidated results of the WSE Group in 2013:

  • Sales revenues: PLN 283.8 million, +3.6% YoY
  • Net profit: PLN 113.5 million, +6.9% YoY
  • Revenues on the commodity market: PLN 76 million, +21.3% YoY
  • Revenues on the financial market: PLN 205.3 million, -1.4% YoY
  • EBITDA: PLN 156.9 million, +3.8% YoY
  • EPS: PLN 2.70 (PLN 2.52 in 2012)

Warsaw Stock Exchange Group generated record-high revenues of PLN 283.8 million in 2013. This represents a year-on-year increase of PLN 9.9 million (+3.6%) as a result of an increase in revenues on the commodity market, which stood at PLN 76 million (+21.3% YoY) accounting for 26.8% of the Group’s total revenues.

- In spite of uneasy market conditions and the changing market environment, we managed to generate a higher net profit and higher sales revenues at Group level last year. Importantly, this was done without affecting our investment programme; quite the opposite: throughout the year, we were actively implementing new concepts which will contribute tangible benefits to WSE in the future, also in the financial dimension. We also put a strong emphasis on the diversification of our business with a clear focus on the commodity market. As a result, the share of revenues on the commodity market increased from 22.9% at the end of 2012 to 26.8% of the WSE Group’s total revenues. As for the commodity market, we have not said the last word. We believe that it has a huge unlocked potential which could be an important driver of further growth of our business. Therefore, we are optimistic about the future and remain certain that the capital market segment of exchange activities will report good results this year with the improving economic situation in Europe, said Adam Maciejewski, President of the Management Board of WSE.

The recently approved strategy WSE.2020 provides for diversification and growth of revenues beyond the financial market. This will enhance the competitiveness of fees on the financial market.

- The increasingly competitive European exchange market, of which WSE is an integral part, is evolving. We understand that and work to prepare our offer to best address the expectations of market participants. It is important, especially in the context of ensuring continued growth of this market segment in Poland. Therefore, to enhance its competitiveness in terms of fees, we have to look for revenue beyond the financial market. Since the start of its consolidation, PolPX has been a key and growing revenue line of WSE Group. However, we will not limit ourselves to this investment in the commodity market segment. We can see a huge potential in developing the gas market, which opened in December 2012. In 2013, through our subsidiary WSEInfoEngine, we launched OTC trade in electricity and now offer new services to energy market players. We are also approaching the launch of PolPX’s market in commodity derivatives settled in cash. All of this should in the future make the WSE Group even more attractive to a broad group of clients, said Adam Maciejewski.

The addition of PolPX to WSE Group also had an important impact on operating expenses, which stood at PLN 166.2 million in 2013, an increase of 11.9% compared to 2012, when PolPX was consolidated only for 10 months as of March 2012. Another key driver of operating expenses was the biggest technology upgrade on the Polish capital market, completed by WSE on 15 April 2013: the implementation of the new trading system UTP. As a result, depreciation and amortisation charges increased by PLN 9.2 million year on year in 2013.

- The UTP implementation means not only that Warsaw Stock Exchange uses a system of the top global standards but, first and foremost, it has opened new opportunities of building more liquidity on the equities market. The new technology infrastructure supports the development of our product offer and the introduction of new services and trading techniques. We are focusing on unlocking this potential. In 2013, we introduced among others the co-location service and the special promotion programme High Volume Provider. We are actively opening new segments of the derivatives market. We are taking major steps to ensure that the financial market remains a strong contributor to the Group’s revenues, said the President of WSE.

Despite a significant reduction of transaction fees on the equities and derivatives market introduced in early 2013, the WSE Group’s revenues on the financial market decreased only modestly by 1.4% to PLN 205.3 million. This was mainly attributed to the growing value of session transactions in equities which stood at PLN 220.2 billion in 2013, an increase of more than 17% year on year. WSE’s share in trading in equities in the region of Central and Eastern Europe was 58.5% in 2013 compared to 54.3% in 2012.

The year 2013 was a time of continued focused diversification of WSE Group’s activities, including the acquisition of stake in Aquis Exchange by WSE. Aquis is a multilateral trading facility (MTF) registered in the UK. It currently offers trade in French, Dutch, German and UK equities and is planning to add equities from other Western European markets in the coming months. The investment is one of many completed and planned activities of the WSE Group geared towards strengthening its international position and financial standing.

- The acquisition of Aquis Exchange is a foretaste of WSE Group’s plans for the coming years. Last year was symbolically crowned with the WSE Supervisory Board’s approval of the new bold growth strategy of Warsaw Stock Exchange: WSE.2020. According to the strategy, we will actively and confidently diversify our products and services to build up a strong group and unlock resulting synergies. This will be done not only to remain resilient to the impact of cycles on the financial markets and to create shareholder value but also to strengthen the economies of the countries where we are present, said Adam Maciejewski.

The net profit of WSE Group was PLN 113.5 million in 2013, an increase of 6.9% year on year.

2014-03-24



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