The JSE delivered a strong performance in the first half of 2022 driven by revenue growth across all segments and disciplined cost management. Earnings before interest tax depreciation and amortisation (EBITDA) increased by 20% to R627 million, with the EBITDA margin improving from 42% to 45% in the corresponding period in 2021. Headline earnings per share (HEPS) increased by 29% year-on-year (YoY) to 542.7 cents per share. The JSE’s core business model, underpinned by quality earnings and strong cash generation, continues to provide a solid foundation for growth.
Leila Fourie, Group CEO at the JSE commented, “Throughout this period, uncertainty in the markets manifested in volatility and higher trade activity. The depth of the JSE’s operational capabilities has ensured resilience during these volatile periods. I am particularly pleased with the contribution of annuity revenue derived from business uncorrelated to trading activity and our disciplined cost management. These steady improvements create positive momentum and together underpin the quality of earnings in line with our strategy.”
Strategically and operationally, the JSE executed well on its priorities in H1 2022. Highlights include the introduction of the Transition Segment and Sustainability-Linked Bonds, as well the publication of its Sustainability and Climate Disclosure Guidance. It launched JSE Private Placements (JPP), an automated and digitised platform which offers services to private entities looking to raise debt or equity. The online solution connects private companies and issuers directly to investors, enabling private capital formation in a more transparent, efficient, and accessible manner. Since its launch in January 2022, JPP has eleven issuances year to date and over R10 billion in investor capital onboarded. The JSE also launched JSE Trade Explorer to provide equity market trade analytics. It also grew JSE Investor Services (JIS) market share, from 20% at acquisition to 27%, and added 14 new clients. JIS is the JSE’s share registry, custody and investor service business, maintaining the registers of listed and unlisted companies including JSE’s Top 40.
Revenue performance per segment:
Capital markets
- Primary Market: Revenue increased by 9% to R81 million (2021: R74 million)
- Equity Trading: Revenue increased by 9% to R260 million (2021: R240 million)
- Equity Derivatives Trading: Revenue increased by 13% to R83 million (2021: R74 million)
- Bond and Interest Rate Trading: Revenue increased by 6% to R38 million (2021 R36 million)
- Currency Derivatives Trading: Revenue increased by 12% to R20 million (2021: R18 million)
- Commodity Derivatives Trading: Revenue increased by 5% to R49 million (2021: R46 million)
- JIS: Revenue increased by 46% to R76 million (2021: R52 million)
Post-Trade Services
- Clearing and Settlement revenue increased by 10% to R229 million (2021: R207 million)
- Back-office services (BDA) revenue increased by 4% to R180 million (2021: R173 million)
- Funds under management revenue increased by 13% to R45 million (2021: R40 million)
Information Services
- Revenue increased by 15% to R200 million (2021: R174 million)
Future focus
The JSE’s focus for the second half of the year will be to invest in its core business to sustain operations, whilst progressing its growth strategy for Information Services, formulated on a five-year horizon. “Our long-term strategic objectives are to grow and diversify revenue streams, invest in our infrastructure to ensure operational robustness and resilience, and further entrench sustainability (ESG) in the business,” concludes Fourie.
