APA – Lagos (Nigeria)
The Nigerian Exchange Group Plc (NGX Group) has announced a profit before tax of N0.7bn in unaudited half year result ended June 30, 2023.
Commenting on the report, the Group Managing Director/Chief Executive Officer of the NGZ Group Plc, Mr. Oscar N. Onyema, said: “While our half-year financial results for 2023 may reflect the impact of economic headwinds, NGX Group demonstrated resilience by recording a profit before tax of N0.7 billion.
“We are optimistic that with market friendly pronouncements already made by the new government, trading and listing activities will continue the positive impact experienced in June 2023. Consistent with our strategic objective to maximise shareholder value, the Board of Directors has consented to an interim dividend of N0.25 Kobo per ordinary share of 50 Kobo. This translates to a total payout of N495,532,893 (Four Hundred and ninety-five million, five hundred and thirty-two thousand, eight hundred and ninety-three Naira).”
This initiative, according to him, underscores better flow through of dividend from an associate company and first-time dividend payment from our flagship subsidiary.
“It also emphasizes our continued commitment to working collaboratively with our shareholders and other stakeholders in creating and distributing value, even in challenging market conditions,” he added.
The Group Financial Performance Review showed that gross earnings recorded a decrease of 12.5% to N3.70 billion from N4.22 billion as of June 2022, while other income increased by 24.9% to N490 million from N393 million in the same period.
According to the review, revenue decreased by 16.3% to N3.2 billion in June 2023 from N3.82 billion recorded in June 2022. This was driven by 14.6% decline in treasury investment income (27.1% of revenue) to N869 million in June 2023 relative to N1,017.4 million in the comparative period in 2022 primarily driven by a comparative reduction in our treasury holdings year over year. 21.2% decline in transaction fees (57.2% of revenue) to N1,830 million in June 2023 from N2,320.7 million recorded in June 2022 due to a drop in trading activities in Nigerian Exchange Limited (“NGX” or “The Exchange”).
The review also showed that total expenses grew marginally by 0.4% from N2.60 billion in June 2022 to N2.61 billion in June 2023 primarily driven by a 3.7% growth in operating expenses (39.3% of total expenses) to N1.02 billion from N991.2 million in June 2022, while profit before income tax declined by 40.6% to N726 million in June 2023 from N1,223.2 million in the corresponding period in 2022 due to a reduction in the top line YoY.
“Profit after income tax declined by 45.9% to N444.1 million from N820.2 million. This also resulted in a decline in profit after-tax margin to 12.03% from 19.45% recorded in June 2022,” it added. ($1=N788)
GIK/APA