Warsaw Stock Exchange in 2011: Consistent implementation of WSE strategy backed up by WSE’s robust financial standing

Warsaw Stock Exchange in 2011: Consistent implementation of WSE strategy backed up by WSE’s robust financial standing

13/03/2012

Consolidated results of WSE Group:

• Sales revenues: PLN 268.8 million, up by 19.1%
• Operating profit: PLN 133.7 million, up by 45.7%
• Record-high turnover on markets in shares
• Net profit: PLN 134.1 million, up by 41.5%
• EBITDA: PLN 164.7 million, up by 34.4%
• EBITDA margin: 61.3%, up by 7 percentage points
• ROE: 25.6%, up by 7.4 percentage points
• EPS: PLN 3.2
• Addition of the commodity market to WSE Group
 

The Warsaw Stock Exchange was the world’s #1 exchange by the growth rate in the number of listed companies and #7 by the growth rate of the value of trading in shares according to the World Federation of Exchanges (WFE). The number of companies listed on the WSE increased by 33% to 777, which is best proof of attractive conditions created by the WSE for domestic and foreign companies looking for growth capital. While indices on most global exchanges were falling, session trading in shares on the WSE increased by 25% (converted to US$) in view of a 0.1% decrease of the total turnover in shares on the global exchanges, which demonstrates the strong growth potential of the Warsaw Stock Exchange. This also confirms the rationale of many initiatives taken by the WSE and WSE Group companies in 2011. These include in particular the extension of the trading hours, which was one of the main drivers of growing investor activity in 2011.

WSE Group in 2011:

  • reported record-high turnover on most of its markets (including the Main Market in shares, session and block trades: PLN 268.1 billion, +21%; derivatives: 15.56 million instruments, +6%; Treasury bonds on TBSP, conditional and cash transactions: PLN 1,037.5 billion, +321%);
  • consolidated its position in Central and Eastern Europe by generating 50% of trade in shares of companies from the region and representing 45% of the capitalisation of the exchanges in the region;[1]
  • was one of the strongest IPO markets in Europe and world-wide (#1 by the number of IPOs and #3 by the value of IPOs);[2]
  • expanded its international footprint by attracting first issuers from Bulgaria, Lithuania and Slovenia and by extending the network of remote WSE Members whose number increased from 21 foreign investment banks and brokers at 2010 year-end to 31 at 2011 year-end;
  • made Catalyst into a vibrant platform of financing companies and other economic operators with bonds (the value of listed non-Treasury bond issues increased by 86% to more than PLN 40 billion).

The financial results of WSE Group followed these trends. Sales revenues increased by 19.1% to PLN 268.8 million, the highest figure in history; combined with a moderate increase of operating expenses (by 1.2% to PLN 134 million), this meant that net profit grew by 41.5% in 2011 to PLN 134.1 million. The WSE’s separate net profit was PLN 121.1 million, providing a good base for dividend pay-out in 2012.

The market achievements and the stable financial position of the WSE were acknowledged by retail and institutional investors who participated in a public offering of WSE bonds at the turn of 2012. Demand was much greater than the value of placed bonds (PLN 245 million nominal value) while the yield of the bonds at WIBOR + 117 basis points demonstrated that investors consider the WSE to be among the Polish companies in the best financial condition.

“The funds raised in the bond issue allowed us to enter 2012 with new assets in the Group: commodity trading assets (Polish Power Exchange) and clearing assets on the commodity market (Warsaw Commodity Clearing House). These changes combined with the implementation of a new trading system will drive further dynamic growth of the Group and diversify its sources of revenue. As a result, they will be an important factor of growing the attractiveness of the national financial market and building shareholder value of the WSE,” said Ludwik Sobolewski, President of the WSE Management Board.

[1]Source: WFE

[2]Source: PwC