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Trading statement for the six months ending 30 June 2019
JSE Limited
(Incorporated in the Republic of South Africa)
Registration number 2005/022939/06
Share code: JSE
ISIN: ZAE000079711
("JSE" or “the Group”)
TRADING STATEMENT FOR THE SIX MONTHS ENDING 30 JUNE 2019
The JSE is currently finalising its financial results for the six
months ending 30 June 2019 (the “period”), which results are expected
to be released on the Stock Exchange News Service on 30 July 2019.
In terms of the JSE Limited Listings Requirements, a listed company
must publish a trading statement once it is satisfied that a
reasonable degree of certainty exists that the financial results for
the period to be reported on next will differ by at least 20% from
the reported financial results for the previous corresponding
period.
Shareholders are accordingly advised that:
- Headline earnings per share (“HEPS”) for the Group for the
period is expected to be between 490.95 cents and 425.49 cents.
This is between 25% and 35% lower than the 654.6 cents reported
for the six months ended 30 June 2018 (“the comparative
period”); and
- Earnings per share (“EPS”) for the Group for the period is
expected to be between 491.03 cents and 425.56 cents. This is
between 25% and 35% lower than the 654.7 cents reported for the
comparative period.
HEPS and EPS for the Group for the period have been impacted by
several factors, including:
- A decline in the key activity drivers in the main asset classes
traded on the JSE and, in particular, lower value traded in the
equities market which has seen more than R28 billion net foreign
sales and muted local investor activity during H1 2019. This
has translated into lower revenues. This revenue performance
has been exacerbated by the high base effect in H1 2018;
- The impact of the new tiered billing model for equities trading,
which reduced the cost of trading for our clients. This model
was introduced in August 2018 and was applicable for H2 2018
but not in the comparative period;
- The impact of the income tax credit of R31m reported in H1 2018
which adds to the high base effect (as there was no tax credit
in H1 2019);
- Management actions to fill vacancies so as to reach planned
headcount levels (compared to the low base headcount throughout
H1 2018), in order to deliver on the JSE’s extensive strategic
initiatives; and
- Incremental technology and depreciation expenditures in the
period following the implementation of the Integrated Trading
and Clearing system.
The JSE’s cash and capital remain healthy and position the JSE well
to execute on its various strategic initiatives.
Although it is disappointing to reflect these expected results, the
JSE revenue performance largely reflects the reality of the difficult
economic environment in South Africa which, in turn, impacts investor
appetite. This notwithstanding, we are committed to resourcing our
business and making the investments we need to ensure the long-term
sustainability of the JSE as a critical component of the South
African economic ecosystem.
Shareholders are advised that the information provided in this
trading statement has not been reviewed and reported on by the
Group’s external auditors.
Sandton
24 June 2019
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 24/06/2019 07:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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