Nigerian Exchange Group Plc (NGX Group), a leading integrated market infrastructure provider in Africa has announced its unaudited results for the half year ended 30 June 2023.
Key Financial Highlights
- Revenue for the half-year period was N3,200.1 million, representing a 16.3% decrease compared to the same period in 2022.
- Other income surged by 24.9% to N490.3 million from N392.5 million in the previous year.
- Gross earnings stood at N3,690.3 million, showing a decrease of 12.5% compared to the first half of 2022.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) amounted to N1,252.6 million, registering a decline of 33.0% compared to the same period last year.
- Profit before income tax decreased by 40.6% to N726.0 million from N1,223.2 million in the corresponding period in 2022.
- The Group’s total assets decreased by 3.7% to N54.94 billion, while total liabilities saw a reduction of 12.3%, falling from N20.3 billion in December 2022 to N17.8 billion.
Commenting on the financial performance, Mr. Oscar N. Onyema (OON), the Group Managing Director/Chief Executive Officer, expressed optimism, stating, “While our half-year financial results for 2023 may reflect the impact of economic headwinds, NGX Group demonstrated resilience by recording a profit before tax of N0.7 billion. We are optimistic that with market-friendly pronouncements already made by the new government, trading and listing activities will continue the positive impact experienced in June 2023.”
To emphasize its commitment to maximizing shareholder value, NGX Group’s Board of Directors has consented to an interim dividend of N0.25 Kobo per ordinary share of 50 Kobo. This amounts to a total payout of N495,532,893 (Four Hundred and ninety-five million, five hundred and thirty-two thousand, eight hundred and ninety-three Naira). This initiative underscores better flow through of dividend from an associate company and first-time dividend payment from our flagship subsidiary, highlighting the Group’s commitment to creating and distributing value, even in challenging market conditions.
Key Financial Performance Review
- Gross earnings declined by 12.5% due to a decrease in treasury investment income and a drop in trading activities in the NGX.
- Revenue decreased by 16.3%, primarily driven by declines in treasury investment income and transaction fees, partially offset by an increase in listing fees and rental income.
- Other income increased by 24.9% due to growth in market data income and other operating income.
- Total expenses grew marginally by 0.4%, with operating expenses and personnel expenses contributing to the increase.
- Operating profit decreased by 33.3% as a result of the decline in revenue.
- Profit before income tax declined by 40.6% due to the reduction in the top line year over year.
