NGX Group Reports N7.5bn Gross Earnings In 2022

Nigerian Exchange Group (NGX Group) Plc has posted N7.5billion in gross earnings for the year ended December 31, 2022.

The Group audited results revealed that gross earnings grew by 10.3 per cent from N6.8 billion reported in full year 2021. This double-digit growth in the top line was because of the persistent growth in revenue and increase of other income.

Revenue increased by 6.8 per cent to N6.2 billion from N5.8 billion. Transaction fees which accounted for 51.2 per cent of revenue also increased by 9.0 per cent year-on-year (YoY) to N3.2 billion from N2.9 billion in 2021. Growth in treasury investment income moved to N2billion in full year 2022 relative to N1.3 billion in 2021 was driven largely by relatively higher yields on the Group’s treasury investment portfolio owing to improved yields on treasury bills, bonds and fixed deposit instruments.

A 9.0 per cent growth in transaction fees to N3.2 billion in 2022 from N2.9 billion recorded in 2021 was driven by improved trading activities in Nigerian Exchange Limited, while listing fees grew by 1.3 per cent to N774.7 million in 2022 from N754.9 million in 2021 driven primarily by a relatively higher listing of corporates on the Exchange in the year ended 2022 compared to the same period in 2021.

Growth recorded by the Group in other income was driven by a 47.2 per cent increase in market data income to N581.4 million from N395.0 million, while total expenses grew by 35.5 per cent to N8.8 billion from N6.5 billion in 2021.

EBITDA grew by 70.6 per cent to N1.3 billion from N775.9 million recorded in FY 2021. Profit before income tax declined to N823.0 million in 2022 from N2.4 billion in the corresponding period in 2021 due to the growth in finance costs.

Total assets expanded by 50.7 per cent to N57.1 billion from N37.9 billion as at year end 2021.

Speaking on the performance, the Group managing director/chief executive officer of NGX Group, Mr. Oscar Onyema said: “NGX Group continued to bed-down its operations post demutualisation and restructuring. Despite the economic headwinds affecting the country, as demonstrated by our year end results, we have continued to create lasting value.

“Our top-line expansion drove a 70.6 per cent increase in Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) in 2022. In the same year, the Group leveraged its strong equity position and strategically increased its investment in an associate company in order to drive growth, boost efficiency and further maximise overall shareholder value.”

He added that, “however, the bottom-line operating performance slipped mainly due to the interest expenses resulting from borrowing to fulfil the strategic acquisition mentioned above.

“Our growth will be driven by deepening value creation in subsidiaries and expansion into adjacent businesses. As an organisation, we remain committed to becoming Africa’s preeminent integrated market infrastructure group.”