The Nigerian Exchange Group (NGX Group) reported a 138.3% increase in gross earnings during the first half of the year (H1).
According to the group’s unaudited results for the six-month period that concluded on June 30, 2022, total earnings increased by 138.3% to N4.22 billion from N1.77 billion in the same period the previous year.
In order to build the groundwork for the franchise’s resuscitation as a fully fledged for-profit making firm with a clear focus on maximizing resources and boosting stakeholder returns in 2021, the group connected the better performance to strategic initiatives made to reorganize its organization.
Due to a 138.3% increase in gross revenue, its operating profit increased to N273.2 million in June 2022 from an operating loss of N177.2 million the previous year. Profit before income tax increased by 134.4%, from N521.9 million to N1.22 billion, as a result of the top line’s strong rise.
The group claims that even though the effective tax rate increased from 13.84 percent in June 2021 to 32.95 percent in June 2022, the profit after income tax increased by 82.4% to N820.2 million from N449.7 million in 2021.
According to the group, this caused the profit after tax margin to drop from 25.42 percent in June 2021 to 19.45 percent today.
Additionally, total assets increased by 59.9% to N39.8 billion from N24.9 billion in December 2021. This increase was primarily due to an increase of 91.3% in associate investment to N31.99 billion from N14.8 billion in December 2021 and an increase of 116.8% in cash and cash equivalents to N4.3 billion from N2.2 billion in December 2021.
The firm’s success in the first quarter of 2022, according to group managing director and chief executive officer Oscar Onyema, is evidence of the group’s capacity to generate long-term value.
Despite the unique difficulties posed by our operating environment, we managed to produce a profit before tax of N1.22 billion thanks to significant increase in our top line.
He stated that the objective is still to maintain its position as the premier integrated market infrastructure organization in Africa by expanding its sources of income and seeking out and funding new ventures.
Without losing sight of new potential in unrelated industries within the sub-Saharan African area, we remain committed to constructing formidable enterprises through broader and deeper involvement in every sector of the capital market value chain.
Onyema made a suggestion that the 165.1% growth in treasury investment income was the primary factor in the revenue growth of 140.4% to N3.82 billion from N1.58 billion reported in June 2021.
“A significant increase in trading activities at the Nigerian Exchange Limited (NGX) resulted in a 198.4% growth in transaction fees (60.7% of revenue), which increased to N2.32 billion in June 2022 from N777.7 million in June 2021. Additionally, revenue from the lease of office space from NGX Real Estate increased by 60.5%, from N32.2 million in June 2021 to N51.7 million.
According to him, “other fees” included rental income from the trading floor, annual broker fees, dealing licensing fees, and membership fees paid by the Group, decreased by 15.4% to N69.7 million in June 2022 from N82.4 million in June 2021 (1.8% of revenue).