MOSCOW EXCHANGE MICEX-RTS Unless stated otherwise, all figures below refer to performance in Q1 2022 and all comparisons are with the corresponding period of 2021, based on IFRS financials.
HIGHLIGHTS FOR Q1 2022
- Fee and commission (F&C) income increased by 15.1% to RUB 10,647.8 mln.
- Growth of F&C income was driven by robust trading volumes in January and February 2022. In Q2 2022, MOEX expects a meaningful decline in trading volumes that may persist in subsequent quarters.
- EBITDA rose by 17.8% to RUB 11,052.7 mln. Net profit grew by 18.5% to RUB 8,099.4 mln.
PERFORMANCE OF KEY BUSINESS LINES
| RUB mln | Q1 2022 | Q1 2021 | YoY | Q4 2021 | QoQ |
| Equities Market | |||||
| Fee and commission income, RUB mln | 1,538.4 | 1,257.1 | 22.4% | 1,559.0 | -1.3% |
| Trading volumes, RUB bln | 9,295.0 | 7,154.7 | 29.9% | 9,243.7 | 0.6% |
| Bond Market | |||||
| Fee and commission income, RUB mln | 291.3 | 516.9 | -43.6% | 601.2 | -51.5% |
| Trading volumes (excl. overnight bonds), RUB bln | 1,991.7 | 4,034.2 | -50.6% | 4,629.1 | -57.0% |
| FX Market | |||||
| Fee and commission income, RUB mln | 1,466.3 | 1,073.3 | 36.6% | 1,154.1 | 27.1% |
| Trading volumes, RUB bln | 102,544.8 | 78,726.8 | 30.3% | 81,120.9 | 26.4% |
| Money Market | |||||
| Fee and commission income, RUB mln | 2,763.4 | 2,388.2 | 15.7% | 3,372.6 | -18.1% |
| Trading volumes, RUB bln | 188,318.6 | 93,608.8 | 2.0x | 133,046.9 | 41.5% |
| Derivatives Market | |||||
| Fee and commission income, RUB mln | 1,204.9 | 1,228.2 | -1.9% | 1,638.5 | -26.5% |
| Trading volumes, RUB bln | 35,317.5 | 40,069.2 | -11.9% | 45,301.5 | -22.0% |
| Depository and Settlement Services | |||||
| Fee and commission income, RUB mln | 2,148.9 | 1,921.3 | 11.8% | 2,399.9 | -10.5% |
| Average assets under custody, RUB bln | 67,882.5 | 63,147.5 | 7.5% | 73,074.8 | -7.1% |
| Other fee and commission income (IT Services, Listing and Other fee income) | 1,234.6 | 867.9 | 42.3% | 1,237.5 | -0.2% |
| Information services, RUB mln | 347.7 | 274.0 | 26.9% | 306.8 | 13.3% |
| Sale of software and tech. services, RUB mln | 288.0 | 246.7 | 16.7% | 302.6 | -4.8% |
| Listing and other services, RUB mln | 116.1 | 155.9 | -25.5% | 233.4 | -50.3% |
| Financial marketplace services, RUB mln | 186.4 | 0.2 | n. m. | 180.3 | 3.4% |
| Other fee income, RUB mln | 296.4 | 191.1 | 55.1% | 214.4 | 38.2% |
| Total fee and commission income | 10,647.8 | 9,252.9 | 15.1% | 11,962.8 | -11.0% |
- The total market capitalization of the Equities Market as of the end of the first quarter was RUB 47.30 trln (USD 578.63 bln). Fee and commission income from the Equities Market grew by 22.4% on the back of an increase in trading volumes of 29.9%.
- Fees and commissions from the Bond Market decreased by 43.6% as trading volumes excluding overnight bonds shrank by 50.6%.
- Money Market fee income advanced 15.7% to reach nearly RUB 2.8 bln. Trading volumes were up 2x. The discrepancy between volume and fee dynamics was mainly attributable to a decrease in average repo terms.
- Fee income from the FX Market was up 36.6% following a 30.3% increase in trading volumes. The discrepancy in fee and volume dynamics is largely due to non-organic factors. Spot volumes added 19.2%, while swap volumes gained 35.6%.
- Derivatives Market fee income was virtually flat, decreasing by 1.9%, while trading volumes declined by 11.9%. The discrepancy between fee income and volumes dynamics is the result of a shift in the structure of trading volumes. The effective fee was also supported by revenue from standardized OTC derivatives.
- Sales of software and technical services added 16.7% YoY. Listing and other services declined 25.5% on the back of lower primary bond market activity. Financial marketplace services fees accounted for RUB 186.4 mln.
BALANCE SHEET SUMMARY
| RUB mln | Q1 2022 | Q1 2021 | YoY | Q4 2021 | QoQ |
| Total assets | 7,556,452.4 | 5,792,266.8 | 30.5% | 6,143,438.3 | 23.0% |
| Total liabilities | 7,430,096.1 | 5,648,879.9 | 31.5% | 6,003,267.3 | 23.8% |
| Total equity | 126,356.3 | 143,386.9 | -11.9% | 140,171.0 | -9.9% |
OPEX BREAKDOWN
| RUB mln | Q1 2022 | Q1 2021 | YoY | Q4 2021 | QoQ |
| General and Administrative Expenses | 3,535.9 | 2,130.0 | 66.0% | 3,388.1 | 4.4% |
| Advertising and marketing costs | 797.9 | 27.7 | 28.8x | 570.9 | 39.8% |
| Amortisation of intangible assets | 752.8 | 658.9 | 14.3% | 700.2 | 7.5% |
| Equipment and intangible assets maintenance | 559.6 | 423.7 | 32.1% | 558.8 | 0.1% |
| Taxes, other than income tax | 313.3 | 157.9 | 98.4% | 291.5 | 7.5% |
| Depreciation of property and equipment | 285.0 | 232.4 | 22.6% | 266.4 | 7.0% |
| Professional services | 199.7 | 117.4 | 70.1% | 19.5 | 10.2х |
| Registrar & foreign depository services | 132.2 | 159.3 | -17.0% | 143.2 | -7.7% |
| Market makers fees | 131.8 | 169.8 | -22.4% | 201.6 | -34.6% |
| Agent fees | 128.5 | - | n. m. | 328.6 | -60.9% |
| Information services | 90.8 | 39.6 | 2.3x | 128.9 | -29.6% |
| Rent and office maintenance | 86.1 | 96.7 | -11.0% | 73.1 | 17.8% |
| Communication services | 25.1 | 18.1 | 38.7% | 32.8 | -23.5% |
| Security expenses | 7.5 | 7.8 | -3.8% | 6.8 | 10.3% |
| Transport expenses | 4.4 | 8.6 | -48.8% | 4.0 | 10.0% |
| Business trip expenses | 2.6 | 0.7 | 3.7x | 5.3 | -50.9% |
| Loss on disposal of property, equipment and intangible assets | 2.4 | 0.3 | 8.0x | 12.9 | -81.4% |
| Other | 16.2 | 11.1 | 45.9% | 43.6 | -62.8% |
| Personnel expenses | 3,067.0 | 2,394.0 | 28.1% | 2,707.4 | 13.3% |
| Employees benefits except for share-based payments | 2,318.0 | 1,790.8 | 29.4% | 2,210.5 | 4.9% |
| Payroll related taxes | 633.1 | 509.8 | 24.2% | 389.6 | 62.5% |
| Share-based payment expense on equity settled instruments | 114.8 | 91.4 | 25.6% | 83.5 | 37.5% |
| Share-based payment expense on cash settled instruments | 1.1 | 2.0 | -45.0% | 23.8 | -95.4% |
| Total operating expenses | 6,602.9 | 4,524.0 | 46.0% | 6,095.5 | 8.3% |
| Headcount, employees e-o-p | 2,283 | 1,993 | 14.6% | 2,208 | 3.4% |
- Total OPEX increased by 46.0%, driven mainly by administrative expenses. The non-organic contribution from Inguru & NTPro was 6.4 p.p. Total contribution from Marketplace (including Inguru) was 22.4 p.p.
- Net of marketing costs, OPEX grew 28.9%. Net of marketing and non-organic factors, OPEX added 22.8%.
- Personnel expenses growth of 28.1% breaks down as follows: 15.3 p.p. headcount growth; 10.2 p.p. net effect of bonus provisions; 2.6 p.p. other factors.
- Headcount growth of 14.6% breaks down as follows: 3.3 p.p. stemming from NTPro acquisition; 1.1 p.p. from Inguru acquisition; 10.2 p.p. other hires, mainly for Finuslugi project.
- D&A and IT maintenance added 21.5%, mainly driven by a 32.1% growth in IT maintenance that was largely due to RUB depreciation, inflation and headcount growth.
- G&A expenses beyond D&A and IT maintenance grew 137.9%, breaking down as follows: 95 p.p. advertising & marketing expenses; 19 p.p. taxes other than income tax - mainly VAT on marketing costs; 16 p.p. agent fees, largely attributable to Inguru; 9 p.p. other factors.
- Capex for the quarter was RUB 1.10 bln, mostly attributable to purchases and development of software as well as the development of the Finuslugi platform.
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 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 07:01:02 UTC.
