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 50^th 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).

Disclaimer:

Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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.