the stock exchange Tonight (Monday) reported its financial results in the fourth quarter and for the whole of 2021 – during which records were recorded in almost all parameters and net profit jumped by 23%.
The stock exchange’s reports, issued in Tel Aviv in August 2019, show that its annual revenues increased by about 6% and amounted to NIS 324 million. This is a more moderate growth rate than the one recorded in 2020 (then revenues were NIS 304 million, 17% more than in 2019) – despite the records of issues and raising funds recorded this year. In the fourth quarter alone, revenues increased by 11% compared to the corresponding quarter and amounted to NIS 86 million.
As for the net profit, in 2021 as a whole the profit was NIS 45 million – a jump of 23% compared to the previous year. In the fourth quarter, profit increased by 25% and amounted to NIS 14 million. The quarterly adjusted EBITDA amounted to NIS 30 million, an increase of 14% compared to the last quarter of 2020, while the annual adjusted EBITDA increased by 8% compared to last year and amounted to NIS 103 million.
In 2021, the number of new companies on the stock exchange will increase by 28%. 107 new companies joined, including 94 issues of new companies in the framework of which a total amount of NIS 10.5 billion was raised. The stock exchange notes that this is the highest number of new issuers since 1993. At the end of the year, the number of companies on the stock exchange was 541 – the highest number in the last decade – with the highest total value ever, more than a trillion shekels. The volume of foreign investment has reached its highest level in more than a decade, amounting to NIS 13 billion.
The public is increasing its involvement in the capital market
The report stated that the TASE board of directors instructed the management to formulate a plan for the repurchase of the company’s shares in the amount of up to NIS 100 million and for a period of up to two years, in light of the company’s cash balances.
Itai Ben Zeev, CEO of the Stock Exchange, said that in addition to the peak of issuances and foreign investments, “We are seeing a continued increase in the involvement of the Israeli public and its activity in the Israeli capital market. This is reflected, among other things, in the stock market’s increase in revenue and growth in profitability. “In 2021, about 140,000 new accounts were added to the stock exchange, and according to Ben Zeev, advanced tools for capital market analysis will be launched in the coming year.
The stock exchange will distribute a dividend of about 50% of the profit, in the amount of NIS 22.7 million. The date determining eligibility for the dividend is March 30, 2022 and the payment date will be April 7th. This concludes the company’s dividend distribution plan as approved in 2019.
The year 2021 was also strong for the leading stock market indices. TA 35 rose by 32% and TA 90 by 33%, while for comparison 500 S&P Dow Jones in the US rose by 27% and 19% respectively and stock exchanges in Europe rose by an average of 21%.