2Q 2023 Earnings Presentation
23 August 2023
Delivery on strategic initiatives in 2Q 2023 and beyond
- New Products -
- CarMoney, a fintech microfinance company, had its IPO on MOEX and raised a total of RUB 600 mln.
- Two new futures contracts on commodities and four on Russian equities were introduced on the Derivatives Market.
- Cash-settledEuropean-type premium options on USD-RUB,EUR-RUB and CNY-RUB were launched on the Derivatives Market.
- FX interest rate swap contracts in CNY with maturities of up to five years are now available on MOEX, expanding hedging oppor tunities for clients.
- New services -
- MOEX presented Trade Radar - an information and trading terminal which allows to provide indicative prices and negotiate OTC transactions in secure chats.
- MOEX obtained two licences to do business with digital financial assets (DFAs): (1) exchange operator #1 in Russia, (2) information system operator.
- A discrete auction mechanism now applies to all equities and DRs traded on MOEX, allowing the smoothing of price fluctuations.
- Russia's first warehouse real estate index was introduced, enabling further development of derivatives and other associated i nstruments.
- Equities and Bond Markets are now operating in T+1 mode, in sync with other MOEX Markets in terms of settlement periods.
- New clients & partners -
- MOEX became a partner of the Zorko investment platform, which allows access to pre-IPO financing.
- The total number of retail clients registered on the Securities Market approached 26.4 mln 1. The number of registered IIAs amounted to 5.6 mln1.
- In 2Q 2023, 84 corporates - including 8 newcomers - placed 152 bond issues, raising a total of RUB 880 bln.
Source: Moscow Exchange. | 2 |
1. | As of the end of July. |
2Q 2023 summary of financials
Fee & commission income
RUB bln
+48.1% | +19.8% | ||||||
11.9 | |||||||
8.9 | 9.9 | 10.0 | |||||
8.1 | |||||||
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 |
EBITDA
RUB bln
+43.6%-14.3%
15.3 | 19.1 | 16.3 |
11.4 11.9
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 |
Reported EBITDA = PBT + D&A
Operating expenses (excluding other operating expenses)
RUB bln
+1.7% | +8.9% | ||||||||||||||||||||||
6.0 | 5.9 | ||||||||||||||||||||||
5.8 | 5.4 | 5.4 | |||||||||||||||||||||
1.4 | 1.4 | 1.4 | |||||||||||||||||||||
2.9 | 1.0 | 2.9 | 3.1 | 1.1 | 2.7 | 2.9 | |||||||||||||||||
1.6 | 1.5 | 1.5 | 1.6 | 1.6 | |||||||||||||||||||
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | |||||||||||||||||||
Remaining administrative expenses1 | D&A and IT maintenance | ||||||||||||||||||||||
Net income | Personnel expenses | ||||||||||||||||||||||
RUB bln | |||||||||||||||||||||||
+46.2% | -15.5% | ||||||||||||||||||||||
14.3 | 12.1 | ||||||||||||||||||||||
11.2 | |||||||||||||||||||||||
8.38.7
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 |
Reported net income
Source: Moscow Exchange.
1. Includes remaining administrative expenses, calculated as general and administrative expenses less D&A and maintenance of equipment and intangible assets.
3
Diversified fee and commission income
Fee & commission income performance | Fee & commission income breakdown | |
RUB bln | RUB bln |
2Q 2022 | 2Q 2023 | Change | Change | |
YoY, bln | YoY, % | |||
Money Market | 2.25 | 2.77 | +0.52 | +23.2% |
Depository & Settlement | 1.75 | 2.30 | +0.55 | +31.5% |
FX Market | 1.16 | 1.62 | +0.46 | +39.8% |
Equities Market | 0.47 | 1.62 | +1.15 | +246.6% |
Derivatives Market | 0.56 | 1.46 | +0.91 | +163.6% |
ITSLOFI1 | 1.64 | 1.45 | -0.18 | -11.3% |
Fixed Income Market | 0.24 | 0.71 | +0.47 | +191.8% |
Total F&C income | 8.06 | 11.93 | +3.88 | +48.1% |
+48.1%
8.06
3%
20%
7%
6%
14%
22%
28%
11.93
6% | Fixed Income Market |
12% | ITSLOFI |
12% | Derivatives Market |
14% | Equities Market1 |
14% | FX Market |
19% | Depository & Settlement |
23% | Money Market |
2Q 2022 | 2Q 2023 |
Source: Moscow Exchange. | 4 |
1. ITSLOFI stands for IT Services, Listing and Other Fee Income. The line includes Information services, Sale of software and technical services, Listing and other service fees, Financial marketplace services and Other fee income. |
Operating expenses in 2Q'23 (excluding provisions)
Major expense items | comments |
RUB mln
2Q 2022 | 2Q 2023 | Change | ||
YoY | ||||
Personnel expenses | 2,873.4 | 2,902.4 | 1.0% | |
D&A and IT maintenance | 1,556.1 | 1,606.6 | 3.2% | |
Remaining administrative | 1,375.5 | 1,397.5 | 1.6% | |
expenses,1 incl.: | ||||
• | Advertising and marketing costs | 451.4 | 300.7 | -33.4% |
• | Market makers fees | 71.3 | 173.6 | 143.5% |
Total OPEX | 5,805.0 | 5,906.5 | 1.7% | |
• OPEX for 2Q'23 increased by 1.7% YoY. 1H'23 OPEX was down 8.7% YoY. |
• Personnel expenses were up 1.0% YoY and 7.0% QoQ. The latter is due to |
the low base effect: 1Q'23 figure included some unwinding of extra bonus |
provisions accumulated during FY 2022. |
• The employee headcount was up 1.2% YoY. |
• Advertising and marketing costs decreased 33.4% YoY but surged 2.4x |
QoQ. The quarterly change is explained by Finuslugi-related spending. |
• Market makers' fees expanded 2.4x YoY as trading activity recovered |
across markets. |
• Taxes other than income tax declined by 40.2% YoY following a reduction in |
Headcount, number of employees EOP
+1.2% | +1.1% | |||
2,377 | 2,394 | 2,339 | 2,379 | 2,405 |
Operating expenses
RUB mln
+1.7%+8.9%
5,805 | 5,389 | 6,046 | 5,424 | 5,907 |
51% | 46% | 48% | 50% | 51% |
49% | 54% | 52% | 50% | 49% |
taxable (VAT) spend on marketing and IT maintenance. |
• D&A and IT maintenance grew 3.2% YoY, and the D&A alone was up 14.2% |
YoY on the back of higher CAPEX for 4Q'22. IT maintenance costs |
decreased 21.3% YoY as foreign vendors discontinued their services. The |
13.2% QoQ increase in IT maintenance costs is due to the gradual |
implementation of the software & hardware renewal program. |
• 2Q'23 CAPEX was RUB 0.92 bln. 1H'23 CAPEX amounted to RUB 1.49 bln |
The FY'23 CAPEX guidance stays intact at RUB 4 - 6 bln. Actual spend will |
depend on the implementation of the software & hardware renewal |
program. |
2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 2Q 2022 | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 |
General and administrative expenses
Personnel expenses
• Updated FY'23 OPEX growth guidance is 6 - 10% YoY. |
5
1. Remaining administrative expenses are calculated as general and administrative expenses less depreciation of property and equipment, amortization of intangible assets, maintenance of equipment and intangible assets.
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OJSC Moscow Exchange MICEX-RTS published this content on 23 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 August 2023 11:44:06 UTC.