NGX Spurs Next Phase Of Capital Market Innovation With Made Of Africa Awards

Nigerian Exchange Group Plc (“NGX Group”) has announced its unaudited results for nine months ended 30 September 2023.

Group Financial Highlights2
Income statement
In millions of naira Sep-23 Sep-22 % Change
Revenue 5,949.1 4,974.7 19.6%
Other income 913.7 733.6 24.5%
Gross earnings 6,862.8 5,708.3 20.2%
Personnel expenses (2,270.7) (2,875.2) 21.0%
Operating expenses (1,856.6) (1,639.4) -13.2%
EBITDA 2,735.5 1,193.8 129.1%
Depreciation and Amortization (299.9) (395.2) 24.1%
EBIT 2,435.5 798.6 205.0%
Interest expense on borrowings (2,000.3) (1,689.3) -18.4%
Total expenses (6,427.5) (6,599.1) 2.6%
Operating (loss)/Profit 435.3 (890.8) 148.9%
Share of profit-equity accounted investees 1480.2 1355.2 9.2%
Profit before income tax 1,915.5 464.4 312.5%
Profit /(loss) for the year 1,219.3 172.7 606.2%

Balance Sheet
In millions of naira Sep-23 Dec-22 % Change
Cash and cash equivalent 5,188.5 4,749.7 9.2%
Long-term investment securities 16,470.5 16,330.1 0.9%
Investment in associates 28,455.0 29,711.2 -4.2%
Property, plant and equipment 3,698.8 3,827.4 -3.4%
Total assets 55,397.8 57,063.2 -2.9%
Total equity 37,442.2 36,807.3 1.7%
Total liabilities 17,955.6 20,255.9 -11.4%
Key ratios Jun-23 Dec-22 % Change
Returns on average equity (ROAE) 3.3% 0.5% 600.1%
Return on average assets (ROAA) 4.3% 1.4% 209.5%
EBITDA margin 39.9% 20.9% 90.6%
Operating profit margin 6.3% -15.6% -140.6%
Profit after tax margin 17.77% 3.02% 487.4%

Commenting, Mr. Oscar N. Onyema (OON), the Group Managing Director/Chief Executive Officer, said: “Amid the diverse economic challenges and opportunities that characterised the year, NGX Group has demonstrated remarkable resilience by achieving a 7-fold increase in profit after tax, reaching an impressive N1.2 billion. This outstanding performance is a testament to our unwavering commitment to bolstering the growth and stability of the
Nigerian capital market. It also reflects the positive sentiment prevailing within the ecosystem, in light of the pro-market stance of the new administration. As we diligently monitor both global and domestic economic shifts, our adaptability equips us to navigate the complex financial market landscape effectively. At NGX Group, we remain committed to driving growth, implementing cutting-edge technological solutions, and providing essential resources for successful cross-border engagements, not only within Africa but also on a global scale”.

Group Financial Performance Review (First Nine Months ending September 2023)

Gross Earnings: In the first nine months, we recorded a significant 20.2% growth in gross
earnings, elevating the value to N6.86 billion from N5.71 billion as of September 2022. This uptick is credited to increases in both the revenue and other income categories.

Revenue Insights: Revenue surged by 19.6% to reach N5.95 billion, up from N4.97 billion in September 2022, influenced by: A decrease of 5.9% in treasury investment income, constituting 24.2% of the revenue, resulted in N1,442.2 million. This is down from N1,533.1 million during the same period in 2022, attributed to a reduction in our naira-denominated investment instruments.

A robust 33.2% growth in transaction fees (60.8% of the revenue) to N3,615.3 million,
spurred by heightened trading activities in Nigerian Exchange Limited (NGX).

A 25.5% boost in listing fees (11.9% of revenue) to N705.8 million, reflecting the superior
listing services provided to domestic corporates.

Rental income from NGX Real Estate’s office spaces rose by 37.4% to N106.9 million.

Other fees, however, saw a 9.8% decrease, tallying up to N79 million.

Other Income Breakdown: Other income, representing 13.3% of gross earnings, expanded by 24.5%. This growth was fueled by: A 28.8% enhancement in Market data income (54.6% of other income) at N499.2 million. A 22.4% increment in other operating income (36.3% of other income) which amounted to N331.8 million.

Expense Analysis: Total expenses for the period saw a marginal 2.6% reduction to N6.43 billion. This change was primarily driven by: A rise of 13.2% in operating expenses to N1.86 billion. A spike in finance costs associated with a term loan facility. A notable 21% downturn in personnel expenses, leading to a figure of N2.27 billion.

Profit Metrics: The operating profit showcased a striking turnaround with an increase of 148.9%, registering N435.3 million. This contrasts with the loss of N890.8 million noted in
September 2022.

Profit before income tax experienced a 313% increase, culminating in N1.92 billion of
profit. This was propelled by the improved revenue and contained personnel expenses.

After-tax profit soared by 606% to N1.22 billion, with the after-tax margin now standing at
an impressive 17.77%.

Balance Sheet Highlights: Total assets for the period underwent a 2.9% reduction to N55.40 billion, primarily due to a 34.6% decrease in trade and other receivables. However, this was moderated by a 9.24% uplift in cash and cash equivalents.

Total liabilities receded by 11.4% to N17.96 billion, largely driven by significant drops in
other liabilities and deferred tax liabilities. These results for the nine months ending September 2023 underscore our steadfast commitment to progress, operational acumen, and delivering enhanced value to our stakeholders.


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