JSE reports 35% decline in six months Net Profit but saw 41% increase for second quarter.

Jamaica Stock Exchange (JSE)

For the six months ended June 30, 2017 the Jamaica Stock Exchange (JSE) recorded total revenue of $477.65 million, a 5% decrease when compared to the $501.51 million booked the prior year’s corresponding period. For the quarter, the company reported a 35% increase in total revenue to close the quarter at $236.58 million (2015: $174.68 million), this change the JSE attributed to increases in all revenue streams. The revenue line items moved as follows for the six months:

• Cess income declined 44% to $126.37 million relative to $226.50 million the previous year.
• Fee income grew $66.01 million to close the period at $295.24 million (2016: $229.23 million).
• E-campus showed a slight decline of 1% to $7.94 million, relative to $8.06 million in 2016.
• Other operating income rose 28% during the period to total $48.10 million compared to $37.72 million in 2016.

Total expenses for the six months increased by $38.14million or 13% moving from $291.68 million in 2016 to $329.82 million. Of this:

• Staff Costs had a 14% increase for the period totaling $78 million (2016: $134.35).
• Depreciation and amortization totaled $55.58 million relative to $43.34 million in 2016.
• Professional fees amounted to $26.20 million, a 37% increase year over year.
• Property expenses increased by $12.25 million to $55.58 million during the period under review which was “largely associated with increases in maintenance costs and other licenses expense that were required based on the upgrades done on the Group’s IT infrastructure.”
• Other operating expenses increased by 6% to $20.09 million from $18.99 million the previous year.
• Advertising and promotion increased from the $28.14 million booked in 2016 to $34.42 million. This was due to “promotion of new and existing products and services and the paving of new paths for additional revenue generating products”.

Investment income moved from $24.20 million in 2016 to $10.81 million, reflecting a 55% reduction year over year.

Consequently, profit before tax totaled $158.65 million compared to $233.79 million the year prior. For the second quarter, the company reported a 58% increase in profit before taxation totaling $74.09 million compared to $47.02 million the prior 2016 quarter. Tax charges for the period decreased to $56.89 million relative to $76.08 million the prior year.

As such, JSE reported a net profit of $101.75 million for the six months compared to a profit of $157.72 million for the prior year, a 35% decline. However, Net Profit for the quarter increased by 41% to total $45.51 million compared to $32.22 million the year prior.  Earnings per share for the six months totaled $0.15 compared to $0.22 in 2016, while the trailing earnings per share amounted to $0.24. The numbers of shares used in the calculations are 701,250,000 units.

Balance Sheet at a glance:-

As at June 30, 2017, JSE had assets totaling $1.24 billion, a 36% increase when compared with its balance of $911.03 million a year prior. The JSE highlighted that the increase was “due primarily to an increase in Property, Plant and Equipment, Intangible Assets, Trade and Other Receivables, Cash and Cash Equivalents and Post-Employment Benefits.”

Shareholders’ Equity amounted to $891.43 million (2016: $708.06 million), resulting in a book value per share of $1.27 (2016: $1.01).