ISE reports 15% increase in pre-tax profits for 2013
- Strong performance across debt, funds and equities businesses
- Results show the ISE is “a vibrant, growing business” - CEO Deirdre Somers
- Five new equity listings during 2013 – the highest number of new IPOs since 2007
The ISE has reported pre-tax profits of €7.2m for 2013, a 15% increase on 2012 (2012: €6.3m).
Revenues were 12% higher at €22.9m (2012: €20.4m). The increase was driven by strong growth in primary markets business (in particular from listing debt securities), where revenues grew 17% to €15.4m and accounted for 67% of total ISE revenues.
Primary markets business relates to international debt, fund and equity listings. At the end of December 2013 the ISE had approximately 30,000 securities from 4,000 issuers in 78 countries listing their securities on its markets.
Traded markets business (income from market data sales, transaction income, infrastructure and membership fees), represented 33% of ISE revenue in 2013. This revenue increased by 6% to €7.5m, largely due to increased revenue from ISE Xetra transaction charges, sales of equity and bond market data, and new revenue streams such as pre-LEI (Legal Entity Identifier) code issuance.
ISE Chief Executive Deirdre Somers said the ISE performed strongly across its main businesses – debt, funds and equities – in 2013.
"Our performance in 2013 shows the ISE is a vibrant, growing business,” said Ms Somers. “We benefited from much better market conditions in 2013. The diversified nature of our business and the depth of our customer relationships meant we were well placed to take full advantage of the opportunities that arose during the year.”
"We were especially pleased to see five new companies list on the ISE during 2013. These listings, together with a further three new IPOs so far in 2014, demonstrate that the public markets continue to offer an important source of funding to growing companies and that the ISE can provide valuable access to a global pool of investors.”
Ms Somers added: "We will continue to build on this strong performance. We are successfully developing new revenue streams and the recent announcement of our planned dual listing arrangement with NASDAQ OMX shows our commitment to providing innovative services for the companies and institutions we are here to serve.”
Operating costs rose by 8% to €16.5m. The increase in costs was significantly below the rate of revenue growth with a consequent positive impact on profitability.
Due to the prevailing lower interest rate environment the ISE’s income from investments fell from €1.2m in 2012 to €0.8m in 2013.
As previously announced, the ISE implemented changes to its corporate structure subsequent to year end and has now become The Irish Stock Exchange plc.
This new legal structure brings the ISE more in line with corporate norms and provides the ISE with greater flexibility for its future development.
Note to Editors
Profit before tax
Income tax expense
Profit for the year