May 12, 2020

Jamaica Stock Exchange Group (JSE) for the first three months ended March 31, 2020 recorded total revenue of $508.59 million, a 14% increase when compared to the $445.12 million booked the prior comparable quarter. Of this:

• • Cess income reduced by 38% from $139.03 million booked as at March 2019 to $86.64 million recorded for the period under review.
  • Fee income grew by 46% to $362.51 million to close the quarter under review, compared to $247.71 million reported in the same quarter of 2019.
  • E-campus showed an decrease of 53% to $9.99 million relative to $21.04 million documented in the prior comparable quarter.
  • Other operating income rose 32% during the period to total $49.45 million compared to $37.33 million booked in the same quarter last year. The company noted, “the performance of Other Operating Income was primarily due to the Regional Conference. The Regional Conference Income increased by $11.6m (45%) when compared to the corresponding quarter for 2019.”

Total expenses for the year increased by 21% moving from $261.07 million recorded as at March 2019 to $316.24 million in the first quarter of 2020.  Of this:

• • Staff cost increased 7% to total $114.61 million for the period under review (2019: $107.22 million) and was primarily due to, “the 2019 salary increase, and salaries associated with new staff hires required to support the expansion of current business lines,” JSE noted.
  • Depreciation and amortization totaled $16.91 million for the quarter under review relative to $13.23 million recorded in the prior comparable quarter.
  • Professional fees amounted to $18.78 million (2019: $16.36 million), a 15% increase.
  • Property expenses climbed 61%  to $62.85 million (2019: $39.12 million) for the period under review and as stated by JSE, “is attributed to increase in maintenance costs and license expense”.
  • Other operating expenses grew by 52% to $21.76 million (2019: $14.28 million).
  • Advertising and promotion went up by 40% from $37.17 million in 2019 to $51.91 million booked for the first quarter of 2020. Management noted, “this was largely due to successful Regional Conference and the final planned activity which took place in February in respect to the 50th Anniversary promotion.”
  • Securities commission fees posted a 40% decrease to close at $13.01 million (2019: $21.64 million).
  • Net impairment closed at $8.24 million, a 381% increase when compared to $1.72 million booked in the previous corresponding quarter. Management commented that, “this is attributed to the Expected Credit Loss on trade receivable incorporating current and forward looking economic data.”
  • E-campus expense decreased by 21% to $8.16 million (2019: $10.34 million).
  • Other operating expenses climbed 52% from $14.28 million booked in the first quarter of 2019 to $21.76 million for the quarter under review.

Investment income rose from $1.11 million recorded for the first quarter in 2019 to $6.60 million as at March 2020.

Profit before tax totaled $198.95 million compared to $185.16 million reported in the same quarter of last year.

Tax charges for the quarter totaled $73.80 million (2019: $61.55 million). As such, JSE reported a net profit for the quarter of $125.14 million compared to a profit of $123.60 million in the prior comparable quarter, a 1% marginal increase. Notably, JSE highlighted that, “for the First Quarter, market activities have declined. However, there has been no significant change in profit over the corresponding period.”

Total comprehensive income amounted to $103.57 million relative to $126.61 million recorded in the previous corresponding quarter.

Earnings per share for the quarter totaled $0.18 (2019: $0.18).  The twelve-months trailing EPS is $0.74.  The numbers of shares used in the calculations are 701,250,000 units. JSE stock price closed the trading period on May 12, 2020 at $20.98.

Balance Sheet at a Glance:

As at March 31, 2020, total assets totaled $1.80 billion, a 23% increase when compared to $1.46 billion a year prior. The increase was due to a 20% increase in ‘Property, Plant and Equipment’ from $491.20 million in 2019 to $590.92 million booked for the current period. ‘Trade and Other Receivables’ also contributed to the increase amounting to $364.43 million (2019: $264.83 million).

Shareholders’ Equity amounted to $1.31 billion (2019: $1.08 billion), resulting in a book value per share of $1.87 (2019: $1.54).

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