JSE (JSE) H1 2024 earnings summary

Executive summary

• Delivered stable H1 2024 results with 4.2% growth in operating income and flat net profit after tax at R493 million, despite a 12% decline in equity trading activity and challenging macroeconomic and political conditions.

• Strategic focus on diversification, technology, and innovation is driving growth in non-trading income and operational improvements, with non-trading income now representing 39% of operating income.

• Positive market sentiment post-election and formation of the Government of National Unity led to a recovery in equity trading activity in Q2, continuing into July.

• Continued focus on infrastructure innovation, operational resilience, and strategic transformation initiatives.

Financial highlights

• Operating income rose 4.2% year-on-year to R1.54 billion; total revenue up 4.3% to R1.48 billion.

• Net profit after tax (NPAT) was R493 million; headline earnings per share (HEPS) at 606.0 cents, both flat year-on-year.

• OPEX increased 6.4% year-on-year, mainly due to investments in people, technology, and inflationary pressures.

• EBITDA margin declined by 2 percentage points to 42%; EBIT margin at 36.5%.

• Cash generated from operations was R503 million, up 3% year-on-year; closing cash and bonds balance at R2.3 billion.

Outlook and guidance

• Full-year 2024 guidance maintained: OPEX growth expected at 5%-8%, CapEx within R145-165 million, and dividend payout ratio of 67%-100%.

• H2 2024 priorities include investing in core business, modernising legacy systems, and further diversifying revenue.

• NPAT growth targeted in line with CPI, with a focus on maintaining margins and strong ROE.

• Improved post-election sentiment expected to support macroeconomic conditions.