Jamaica Stock Exchange Limited (JSE), for the first six months ended June 30, 2020 recorded total revenue of $886.85 million, a 1% increase when compared to the $874.52 million booked the prior year’s corresponding period. For the second quarter the company reported a 12% decrease in total revenue to close the quarter at $378.26 million (2019: $429.41 million). JSE’s revenue breakdown for the six months period are as followed:
- Cess income decreased 39% to $174.45 million relative to $287.70 million the previous year.
- Fee income grew $133.86 million to close the period at $635.45 million (2019: $501.59 million).
- E-campus showed a decrease of 50% to $16.99 million, relative to $33.83 million in 2019
- Other operating income rose 17% during the period to total $59.95 million compared to $51.40 million in 2019.
Total expenses for the second quarter decreased slightly by 1% to $259.14 million (2019: $262.47 million). However, total expenses for the six months increased up by $51.85 million or 10% moving from $523.54 million in 2019 to $575.39 million booked for the period under review. Of this:
- Staff Costs had a 6% increase for the period totaling $224.53 million (2019: $211.99 million). Staff Costs for the quarter increased by $5.14 million or 5% to $109.91 million (2019: $104.78 million).
- Depreciation and amortization totaled $33.71 million relative to $26.34 million in 2019. For the second quarter, depreciation and amortization went up by $3.69 million (28%) to close at $16.80 million (2019: $13.11 million).
- Professional fees amounted to $45.58 million (2019: $30.32 million), a 50% increase year over year, for the six months ended June 2020. For the quarter, JSE registered an increase of 92% to close at $26.79 million (2019: $13.96 million).
- Property expenses climbed $37.08 million to $119.10 million (2019: $82.03 million) during the period under review. In addition, property expenses in Q2 exceeded 2019 by $13.35 million (31%) amounting to $56.26 million (2019: $42.91 million).
- Other operating expenses decreased by 1% to $32.69 million from $33.08 million the previous year. Whereas, Q2 experience a decrease of 42% to $10.93 million (2019: $18.80 million).
- Advertising and promotion decreased from the $63.09 million booked for the six months of 2019 to $60.52 million for the corresponding period in 2020. For the quarter, Advertising and promotion decreased 67% to $8.61 million (2019: $25.93 million).
- Securities commission fees posted a 40% decrease year over year to close at $26.65 million (2019: $44.26 million). Likewise, during the quarter, Securities common fees decreased 40% to $13.64 million (2019: $22.61 million).
- Lastly, E-campus expenses decreased by 37% to $14.76 million (2019: $23.59 million), while, for the quarter E-campus expense decreased by 50% to $6.60 million (2019: $13.25 million).
Investment income moved from $13.66 million posted for the six months period in 2019 to $22.79 million, reflecting an 67% increase year over year.
Consequently, profit before tax totaled $334.25 million compared to $364.65 million the year prior. For the second quarter the company reported a 25% decrease in profit before taxation totaling $135.30 million compared to $179.49 million recorded for the prior year’s similar quarter. Tax charges for the six months rose to $121.12 million relative to $119.28 million the prior year.
As such, JSE reported a net profit of $213.13 million for the six months compared to a profit of $245.37 million for the prior year, a 13% decline year over year. Net profit for the quarter had a 28% decrease to total $87.99 million compared to $121.76 million the year prior.
Total comprehensive income for the six months closed at $205.54 million relative to an income of $252.15 million. As for the quarter, total comprehensive amounted to $101.97 million ($125.54).
Earnings per share for the six months totaled $0.30 compared to $0.35 in 2019. EPS for the quarter amounted to $0.13 (2019: $0.17). The trailing twelve months earnings per share amounted to $0.70. The numbers of shares used in the calculations are 701,250,000 units. JSE stock price last traded on August 10, 2020 at $23.50.
Balance Sheet at a glance:-
As at June 30, 2020, assets totaled $1.85 billion, a 17% increase when compared with its balance of $1.58 billion a year prior. The increase was due to an 18% increase in ‘Property, Plant and Equipment’ from $503.20 million to $592.19 million in 2020. ‘Trade and Other Receivables’ also contributed to the increase amounting to $341.83 million (2019: $297.52 million)
Shareholders’ Equity amounted to $1.42 billion (2019: $1.20 billion), resulting in a book value per share of $2.02 (2019: $1.71).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein