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Trading statement for the six months ending 30 June 2020
JSE LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2005/022939/06
Share Code: JSE
ISIN Code: ZAE000079711
LEI: 213800MZ1VUQEBWRFO39
(“JSE” or “the Group”)
TRADING STATEMENT FOR THE SIX MONTHS ENDING 30 JUNE 2020
The JSE is currently finalising its financial results for the six months
ending 30 June 2020 (the “period”), which results are expected to be
released on the Stock Exchange News Service on or about 5 August 2020.
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 540.67 cents and 577.96 cents. This is between
16% and 24% higher than the 466.1 cents reported for the six months
ended 30 June 2019 (“the comparative period”); and
- Earnings per share (“EPS”) for the Group for the period is expected
to be between 541.72 cents and 579.08 cents. This is between 16%
and 24% higher than the 467.0 cents reported for the comparative
period.
HEPS and EPS for the Group for the period have been impacted by several
factors, including:
- An increase in revenue activity drivers and a change in trading
patterns in the main markets operated by the JSE, with sentiment and
volatility driven by the impact of COVID-19, the sovereign credit-
rating downgrade and South Africa’s exit from the World Government
Bond Index. Net foreign outflows in the equities and bonds markets
in the period to date have exceeded R45 billion and R68 billion,
respectively. The equities market, in particular, has recorded
material increases in value traded which has translated into higher
operating revenues;
- Growth in other income driven by an uplift in foreign exchange gains;
- Higher personnel costs largely as a result of executive changes,
including related retention and restraint payments. The JSE also
incurred higher leave pay provisions linked to changing leave
patterns;
- Additional unforeseen general expenditures in response to COVID-19;
and
- Incremental technology and depreciation expenditures principally
relating to the Integrated Trading and Clearing system and
information and increased cyber security spend.
Although these results are pleasing, the revenue performance largely
reflects the near-term impact of market volatility in response to the
COVID-19 pandemic, and masks the structural impediments and low growth
environment facing the South African economy and financial markets. This
provides added impetus to our efforts to diversify revenues and enhance
the quality of earnings. Managing the cost growth trajectory will remain
a key management focus so as to maintain, and in time, improve margins.
The JSE remains strongly cash generative and is sufficiently capitalised,
which provides a solid platform to execute various strategic and inorganic
initiatives.
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
26 June 2020
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 26-06-2020 04:07:00
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