JSE reports 22% increase in first quarter net profits

Date: May 13, 2019

JSE for the first three months ended March 31, 2019 recorded total revenue of $445.12 million, a 27% increase when compared to the $349.58 million booked the prior year. Of this:

    • Cess income rose by 10% to $139.03 million relative to $126.06 million the previous year.
    • Fee income grew by 32% to $247.71 million to close the quarter, compared to $187.55 million in 2018.
    • E-campus showed an increase of 549% to $21.04 million, relative to $3.24 million in 2018. The company noted, “the exceptional performance of the eCampus was primarily sue to the hosting of major workshops and seminar within the quarter”.
    • Other operating income rose 14% during the period to total $37.33 million compared to $32.73 million in 2017.

Total expenses for the year increased by 26% moving from $206.76 million in 2018 to $261.07 million in 2019.  Of this:

    • Staff cost increased 25% to total $107.22 million for the period (2018: $86.06 million) and was primarily due to, “salaries associated with new staff hires required to support new business lines and expansion of current business.”
    • Depreciation and amortization totaled $13.23 million for the year relative to $12.50 million in 2018.
    • Professional fees amounted to $16.36 million (2018: $17.25 million) a 5% decline year over year.
    • Property expenses climbed 23% million to $39.12 million (2018: $31.89 million) for the period and is attributed to “increase in maintenance costs and license expense”.
    • Other operating expenses grew by 8% to $14.28 million from $13.27 million the previous year.
    • Advertising and promotion was up by 72% from $21.61 million in 2018 to $37.17 million. Management noted, “this was largely due to planned increase advertising, public relation and outreach activities being carried out by the Group. Mainly in respect to the 50th Anniversary promotions.”
    • Securities commission fees posted an 17% increase year over year to close at $21.64 million (2018: $18.57 million).

Investment income declined from $8.18 million in 2018 to $1.11 million in 2019.

Profit before tax totaled $185.16 million compared to $151.0 million the prior year’s corresponding period. Tax charges for the quarter totaled $61.55 million (2018: $49.69 million).

Consequently, JSE reported a net profit for the quarter of $123.60 million compared to a profit of $101.31 million in the prior year, a 22% hike.

Total comprehensive income amounted to $126.61 million relative to $97.15 million in 2018.

Earnings per share for the quarter totaled $0.18 compared to $0.14 in 2018.  The trailing EPS is $0.62.  The numbers of shares  used in the calculations are 701,250,000.00 units. JSE stock price closed the trading period on May 13, 2019 at $20.05.

Balance Sheet at a glance:-

As at March 31, 2019, assets totaled $1.46 billion, a 6% increase when compared with its balance of $1.38 billion a year prior. The increase was due to a 45% increase in ‘Property, Plant and Equipment’ from $339.59 million to $491.20 million. ‘Intangible’ also contributed to the increase amounting to $91.73 million (2018:$63.29 million)

Shareholders’ Equity amounted to $1.08 billion (2018: $1.04 billion), resulting in a book value per share of $1.54 (2018: $1.48).


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