Unless stated otherwise, all figures below refer to performance in Q2 2022 and all comparisons are with the corresponding period of 2021, based on IFRS financials.

HIGHLIGHTS FOR Q2 2022

  • Fee and commission (F&C) income decreased by 18.8% to RUB 8,056.3 mln.
  • During the quarter, MOEX experienced a decline in trading volumes that translated into F&C income contraction. The decline was mainly due to the absence of non-resident trading, lower RUB asset price levels and elevated RUB interest rates.
  • EBITDA rose by 17.7% to RUB 11,382.1 mln. Net profit added 19.0% to RUB 8,285.5 mln.

PERFORMANCE OF KEY BUSINESS LINES

RUB mlnQ2 2022Q2 2021 YoYQ1 2022 QoQ
Equities Market
Fee and commission income, RUB mln 466.7 1 199.1 -61.1% 1 538.4 -69.7%
Trading volumes, RUB bln 2 522.3 6 826.4 -63.1% 9 295.0 -72.9%
Bond Market
Fee and commission income, RUB mln 244.1 663.6 -63.2% 291.3 -16.2%
Trading volumes (excl. overnight bonds), RUB bln 1 450.1 4 835.9 -70.0% 1 991.7 -27.2%
FX Market
Fee and commission income, RUB mln 1 160.0 1 021.1 13.6% 1 466.3 -20.9%
Trading volumes, RUB bln 55 875.6 86 973.7 -35.8% 103 527.9 -46.0%
Money Market
Fee and commission income, RUB mln 2 246.0 2 894.4 -22.4% 2 763.4 -18.7%
Trading volumes, RUB bln 164 075.1 116 385.0 41.0% 192 800.6 -14.9%
Derivatives Market
Fee and commission income, RUB mln 555.6 1 092.4 -49.1% 1 204.9 -53.9%
Trading volumes, RUB bln 15 032.5 35 597.3 -57.8% 35 534.7 -57.7%
ITSLM (IT Services, Listing and Marketplace) fee income 825.1 875.5 -5.8% 938.2 -12.1%
Information services, RUB mln 263.6 309.4 -14.8% 347.7 -24.2%
Sale of software and tech. services, RUB mln 270.2 263.6 2.5% 288.0 -6.2%
Listing and other services, RUB mln 108.2 183.5 -41.0% 116.1 -6.8%
Financial marketplace services, RUB mln 183.1 119.0 53.9% 186.4 -1.8%
Other business lines, RUB mln 2 558.8 2 180.6 17.3% 2 445.3 4.6%
Total fee and commission income8056.39926.7 -18.8%10647.8 -24.3%
  • The total market capitalization of the Equities Market as of the end of the second quarter was RUB 40.89 trln (USD 778.90 bln). Fee and commission income from the Equities Market fell by 61.1% on the back of a nearly identical decrease in trading volumes of 63.1%. A slight improvement in effective fee is explained by the ascending tariff structure as trading volumes decrease.
  • Fees and commissions from the Bond Market decreased by 63.2% as trading volumes excluding overnight bonds shrank by 70.0% amid a backdrop of adverse interest rate environment. Effective fee dynamics was supported by migration of trading volumes to value-added, CCP-based trading modes.
  • Money Market fee income declined by 22.4%. Trading volumes were up 41.0%. The discrepancy between volume and fee dynamics was mainly attributable to a drop in repo terms and a contraction in FX repo activity. Overall on-exchange repo terms on average decreased by 22% to 4.6 days. Average GCC repo terms fell by 68% to 2.5 days.
  • Fee income from the FX Market was up 13.6% while trading volumes decreased by 35.8%. The discrepancy in fee and volume dynamics is largely explained by a shift in trading volumes mix towards spot segment. Spot volumes declined 4.4% while swap volumes shrank by 47.1% amid a general economic trend of decreasing FX exposure.
  • Derivatives Market fee income was down 49.1% as trading volumes declined by 57.8%. The discrepancy between fee income and volumes dynamics is the result of a shift in the structure of trading volumes. The effective fee dynamics was slightly supported by the new asymmetric tariff structure implemented 2 weeks prior to the end of second quarter. The new tariff structure favors liquidity makers.
  • Sales of software and technical services stood virtually flat, adding just 2.5% YoY. Information services line decreased 14.8% on the back of a significant ruble appreciation. Listing and other services declined 41.0% due to lower primary bond market activity. Financial marketplace services fees accounted for RUB 183.1 mln.

BALANCE SHEET SUMMARY

RUB mlnQ2 2022Q2 2021 YoYQ1 2022 QoQ
Total assets 6,245,511.5 5,915,252.5 5.6% 7,556,452.4 -17.3%
Total liabilities 6,088,924.6 5,787,225.0 5.2% 7,430,096.1 -18.1%
Total equity 156,586.9 128,027.5 22.3% 126,356.3 23.9%

OPEX BREAKDOWN

RUB mln Q2 2022 Q2 2021 YoY Q1 2022 QoQ
General and Administrative Expenses 2 931.6 2 522.1 16.2% 3 535.9 -17.1%
Amortisation of intangible assets 770.4 670.9 14.8% 752.8 2.3%
Equipment and intangible assets maintenance 479.4 465.8 2.9% 559.6 -14.3%
Advertising and marketing costs 451.4 139.8 222.9% 797.9 -43.4%
Depreciation of property and equipment 306.3 241.3 26.9% 285.0 7.5%
Taxes, other than income tax 277.4 175.9 57.7% 313.3 -11.5%
Professional services 152.9 158.9 -3.8% 199.7 -23.4%
Agent fees 126.3 73.7 71.4% 128.5 -1.7%
Rent and office maintenance 78.7 79.7 -1.3% 86.1 -8.6%
Market makers fees 71.3 193.0 -63.1% 131.8 -45.9%
Registrar and foreign depository services 62.6 163.0 -61.6% 132.2 -52.6%
Communication services 33.9 26.8 26.5% 25.1 35.1%
Business trip expenses 11.4 8.3 37.3% 2.6 338.5%
Information services 9.5 93.0 -89.8% 90.8 -89.5%
Security expenses 7.3 7.6 -3.9% 7.5 -2.7%
Transport expenses 5.9 4.5 31.1% 4.4 34.1%
Loss on disposal of property, equipment and intangible assets 4.3 0.3 1333.3% 2.4 79.2%
Other 82.6 19.6 321.4% 16.2 409.9%
Personnel expenses 2 873.4 2 421.7 18.7% 3 067.0 -6.3%
Employees benefits except for share-based payments 2 431.9 1 954.7 24.4% 2 318.0 4.9%
Payroll related taxes 433.2 368.8 17.5% 633.1 -31.6%
Share-based payment expense on equity settled instruments 0.2 94.7 -99.8% 114.8 -99.8%
Share-based payment expense on cash settled instruments 8.1 3.5 131.4% 1.1 636.4%
Total operating expenses 5 805.0 4 943.8 17.4% 6 602.9 -12.1%
Headcount, employees e-o-p 2 377.0 2 045.0 16.2% 2 381.0 -0.2%
  • Total OPEX for 2Q'22 added 17.4%. Non-organic contribution from Inguru (consolidated in May'21) & NTPro (consolidated in Oct'21) was 2.5 p.p. Total contribution from Marketplace incl. Inguru was 10.3 p.p. Therefore, core business OPEX increased by 7.1%.
  • Net of marketing expenses, the largest expense growth factor, OPEX added 11.4% YoY - below the CPI.
  • Headcount growth of 16.2% decomposes into: 3.0 p.p. NTPro acquisition, 1.5 p.p. outsourced IT personnel brought in-house, 1.2 p.p. Inguru acquisition, 10.5 p.p. other hires, mainly for Finuslugi.
  • Market makers fees contracted on the back of trading volumes decline.
  • D&A and IT maintenance added 12.9% on the back of 18.0% growth in D&A. The latter is explained by higher CAPEX of 4Q'21.
  • Capex for the quarter was RUB 0.88 bln, mostly attributable to purchases and development of software as well as the development of the Finuslugi platform.
  • FY'22 OPEX growth expectation is at or below 20% YoY.
  • FY'22 CAPEX guidance: RUB 4.0-5.0 bln.


Contacts:
Investor Relations: Public Relations:

Anton Terentiev, CFA
+7 495 363 3232
ir@moex.com
Lev Bystrov
+7 495 363 3232
pr@moex.com

NOTES TO EDITORS

About Moscow Exchange

Moscow Exchange Group operates Russia's main trading platform for equities, bonds, derivative instruments, currencies, money market instruments and commodities. The Group includes the central securities depository (National Settlement Depository), and a clearing center (National Clearing Centre), performing the functions of central counterparty on the markets, which allows Moscow Exchange to offer its clients the full spectrum of trading and post-trading services. Moscow Exchange held the initial public offering of its shares on 15 February 2013 (ticker MOEX).

Disclaimers

Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in the Russian Federation, rapid technological and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations.

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OJSC Moscow Exchange MICEX-RTS published this content on 19 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2022 07:03:01 UTC.