Interim report. First quarter of 2018

Transcription

1 Interim report First quarter of 2018

2 Main features of the first quarter: Continued high level of activity in both the primary and secondary markets Six new companies admitted to listing on Oslo Børs/Oslo Axess/Merkur Market - 37 new equity issuers registered with VPS 143 new fixed income issues admitted to listing and 445 new fixed income issues registered with VPS Number of VPS securities accounts up 11% relative to the first quarter of 2017 Value of shares traded up 11% relative to the first quarter of 2017 market share of trading in OBX shares of approximately 62% in the first quarter of 2018 Operating revenue NOK 264 million (252) EBITDA NOK 128 million (124) Earnings per share NOK 2.14 (2.02) Business activities in the quarter (same period last year in brackets) Oslo Børs VPS Holding reports a profit of NOK 92 million for the first quarter of 2018 (NOK 87 million). Operating revenues Operating expenses EBITDA Operating profit (EBIT) Earnings for the period Earnings per share (NOK) 2,14 2,02 8,30 Earnings per share (NOK) before amortisations and write-down 2,16 2,03 8,36 There continued to be high levels of market activity in the first quarter of 2018 in the primary and secondary equity and fixed income markets. Reported revenue for first quarter of 2018 was NOK 264 million, which is NOK 12 million higher than in the first quarter of Revenue from Oslo Børs and VPS increased with NOK 10 million and NOK 2 million respectively. Operating expenses before capitalisation of internal costs, depreciation and amortisation of excess value amounted to NOK 136 million in the first quarter of 2018, an increase of NOK 8 million from the first quarter of The increase principally relates to restructuring costs and project costs at VPS. Net financial income for the first quarter of 2018 totalled NOK 2 million, in line with the same period in Bond issue Oslo Børs VPS Holding ASA has mandated Danske Bank and Pareto securities to arrange a series of fixed income investor meetings commencing on Wednesday 2 May A NOK 450 million 5 year inaugural senior unsecured bond issue may follow, subject to inter alia market conditions. The proceeds from the contemplated bond issue will be used for an extraordinary dividend distribution to shareholders. 2

3 Outlook Operating expenses for 2018 before capitalisation of internal costs, depreciation and amortisation are expected to be in excess of NOK 500 million. Included in this figure is an increase in costs at Centevo in relation to planned development activities at the company. The group s operating revenue varies in line with the level of activity in the securities market. Oslo Børs VPS is committed to offering a range of products and a pricing structure that are competitive and that encourage active use of the group s services. Oslo Børs VPS anticipates that its marketplace activities will continue to face intense competition, and it also expects increasing competition for the group s post-trade activities. 3

4 Oslo Børs Equties - value of turnover Oslo Børs Operating revenues Salary and other operating expenses EBITDA Depreciations and write-downs Amortisations Operating profit (EBIT) Reported revenue for Oslo Børs for the first quarter of 2018 was NOK 134 million (NOK 124 million), an increase of NOK 10 million from the same period in The OSEBX Index (the Benchmark Index) was at the end of the first quarter of 2018, a decrease of 1.1% in the quarter. Four companies were admitted to listing in the first quarter on the Oslo Børs and Oslo Axess marketplaces, two companies were admitted to trading on Merkur Market, and four companies were removed from listing/trading. At the end of the first quarter of 2018, a total of 215 companies were listed on Oslo Børs and Oslo Axess, while 17 companies had been admitted to trading on Merkur Market. There were 43 companies registered on the NOTC list at the end of the first quarter of 2018, with one company deregistered in the quarter. A total of 2,091 fixed income issues were listed on Oslo Børs and Nordic ABM (Alternative Bond Market) at the end of the first quarter of 2018, representing an increase of 159 relative to the end of the first quarter of Listing fees paid by issuers in the first quarter of 2018 totalled NOK 35 million, an increase of NOK 6 million from the same period in Document inspection and admission to listing fees in the first quarter of 2018 totalled NOK 19 million, an increase of NOK 1 million from the same period in Revenue of NOK 2 million from NOTC AS is included in the figures for the first quarter. The value of shares, ETFs and equity certificates traded in the first quarter of 2018 totalled NOK 335 billion (NOK 302 billion), an increase of 11% from the first quarter of We estimate that in the first quarter of 2018 Oslo Børs had a market share of trading in OBX shares of approximately 62%, up from approximately 57% in the first quarter of Oslo Børs had 48 member firms at the end of the first quarter of 2018, of which 18 are local firms and 30 are remote members. The overall level of activity in the derivatives market in the first quarter of 2018, as measured by the number of contracts traded, was approximately 23% higher than in the same period in The level of activity when measured in value terms was approximately 6% higher. Fish Pool reported total contract turnover of 9,174 tonnes for the first quarter of 2018, representing a decrease of approximately 20% from the same period in Total revenue related to trading in the first quarter of 2018 was NOK 35 million, a decrease of NOK 0.5 million from the same period in Revenue related to trading in shares was NOK 2 million higher than in the first quarter of 2017, while revenue related to trading in fixed income instruments was NOK 2 million lower. Revenue related to trading in derivatives was NOK 0.5 million lower. Revenue from Fish Pool, which is included in revenue related to trading in derivatives, was NOK 0.5 million lower than in the first quarter of 2017 at NOK 1.5 million. The estimated number of end users of market data from Oslo Børs at the end of the first quarter of 2018 was approximately 8% lower than at the end of the first quarter of The number of professional users was lower, but the largest decrease was in the number of private users. There was also an increase in non-display use of market data. Revenue related to market data for the first quarter of 2018 was NOK 39 million, an increase of NOK 3 million from the same period in Salary and other operating expenses for the first quarter of 2018 totalled NOK 53 million, a decrease of NOK 1 million relative to the same period in The decrease largely relates to trading system projects at Oslo Børs in Financial market data - number of end-users (professional og private) Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 4

5 VPS VPS Operating revenues Salary and other operating expenses EBITDA Depreciations and write-downs Amortisations Operating profit (EBIT) First-quarter operating revenue for VPS totalled NOK 129 million (NOK 127 million), an increase of NOK 2 million from the first quarter of As a result of VPS fund services activities being spun off to Centevo, the registration of funds in the securities register will, with effect from January 2018, lead to revenue for both the issuer and the investor areas. Revenue from the funds area/centevo will accordingly be lower than in previous periods. In the issuer area, registered securities saw a decrease in the number of limited companies registered with VPS but an increase in the number of fixed income issues registered relative to the first quarter of At the end of the first quarter of 2018, 997 (1,004) limited companies and 3,226 (2,948) fixed income issues were registered with VPS. Revenue from the issuer area for the first quarter of 2018 totalled NOK 36 million, an increase of NOK 2 million from the same period in 2017, of which approximately NOK 1 million is related to funds. In the investor area, the market value of holdings at the end of the first quarter of 2018 was 12% higher than at the end of the first quarter of million VPS accounts were registered at the end of the first quarter of 2018, up from 1.20 million at the end of the first quarter of Revenue from the investor area for the first quarter of 2018 was NOK 46 million, an increase of NOK 9 million relative to the same period in 2017, of which approximately NOK 4 is related to funds. The number of transactions in the settlement area in the first quarter of 2018 was 17% lower than in the same period in There was a high level of investor transactions in the first quarter of Revenue from the settlement area for the first quarter of 2018 totalled NOK 29 million, a decrease of NOK 1 million from the same period in Revenue from Centevo in the first quarter of 2018 totalled NOK 17 million, a decrease of NOK 7 million from the same period in After taking into account the recognition of revenue from funds-related activities by the issuer and investor areas totalling NOK 5 million in the quarter, this represents a decrease of NOK 2 million. Salary and other operating expenses for the first quarter of 2018 were NOK 8 million higher than in the same period in The increase to a large extent relates to restructuring costs and project costs (including CSDR, GDPR, share savings accounts and the new issuer portal). Number of trade transactions processed in VPS (1000) Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Investor accounts and value of holdings Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q # income-earning accounts (1000) Holdings (NOK bill) 5

6 Oslo Market Solutions Oslo Market Solutions Operating revenues Salary and other operating expenses EBITDA Depreciations and write-downs Amortisations Operating profit (EBIT) Operating revenue for the first quarter of 2018 was NOK 0.1 million higher than in the same period in 2017, while operating expenses were NOK 0.4 million higher. Oslo Market Solutions operating revenue fluctuates with the timing of the implementation of customer projects and the delivery of routine services. Please see for further operational key figures. All figures are in thousands of Norwegian kroner and apply to the Oslo Børs VPS group unless otherwise stated. The group comprises the parent company Oslo Børs VPS Holding ASA and the subsidiaries Oslo Børs ASA, Verdipapirsentralen ASA (VPS) and Oslo Market Solutions AS. The accounting information in this report has not been audited. 6

7 Profit and loss account This interim report has been prepared in accordance with IAS 34. The same accounting principles and methods of calculation are used in the interim report as in the annual accounts. Earnings per share is calculated on the basis of earnings for the period in question. Operating revenues Operating expenses Salary and other personnel expenses Other operating expenses Depreciations and write-downs Amortisations Write-downs Operating expenses before capitalisation of internal resources, depreciations and amortisations Total operating expenses EBITDA Operating profit (EBIT) Net financial items Ordinary pre-tax profit Tax Earnings for the period Actuarial gains/losses defined benefit pension plans Tax-effect Total comprehensive income Profit/loss attributable to non-controlling interests Profit/loss attributable to owners of the parent Earnings per share (NOK) 2,14 2,02 8,30 Diluted earnings per share (NOK) 2,14 2,02 8,30 Earnings per share (NOK) before amortisations and write-down 2,16 2,03 8,36 EBITDA= Driftsinntekter fratrukket lønns- og personalkostnader og andre driftskostnader 7

8 Segment information The Oslo Børs VPS Holding group has three segments: Oslo Børs, VPS, and Oslo Market Solutions. The segments are equivalent to the subsidiaries of the same name. Fish Pool and NOTC are included in the segment Oslo Børs. Centevo is included in the segment VPS. Oslo Børs Operating revenues Salary and other operating expenses EBITDA Depreciations and write-downs Amortisations Operating profit (EBIT) VPS Operating revenues Salary and other operating expenses EBITDA Depreciations and write-downs Amortisations Operating profit (EBIT) Oslo Market Solutions Operating revenues Salary and other operating expenses EBITDA Depreciations and write-downs Amortisations Operating profit (EBIT) Other/eliminations Operating revenues Salary and other operating expenses EBITDA Depreciations and write-downs Amortisations Operating profit (EBIT) Total operating revenues Total salary and other operating expenses Total EBITDA Total capitalisation of internal resources Total depreciations and write-downs Total amortisations Total operating profit (EBIT)

9 Balance sheet Current receivables totalled approximately NOK 146 million at the end of the first quarter. Of this, trade receivables totalled NOK 98 million, and other current receivables, including prepaid expenses and income accrued but not yet invoiced, amounted to NOK 48 million. Cash and cash equivalents held at the end of the first quarter totalled NOK 871 million. Current liabilities, which consist of other non-interest-bearing liabilities, amounted to approximately NOK 424 million, of which prepayments from customers and tax payable accounted for NOK 203 million and NOK 84 million respectively. Fixed assets 31 March 31 March 31 Dec IT systems Registrations Goodwill Deferred tax assets Tangible assets Financial fixed assets Current assets Receivables Cash and liquid assets Assets Equity Contributed equity Non-controlling interests Total equity Liabilities Pension liabilities Deferred tax liabilities Current liabilities Equity and liabilities

10 Cash flow Cash flow is reported in accordance with IAS 7. Oslo Børs VPS Holding recorded an increase in cash and cash equivalents of NOK 241 million in the first quarter. Cash and cash equivalents held at the end of the first quarter totalled NOK 871 million. Cash flow from - operational activities investment activities investments in systems and tangible assets investments in subsidiaries financial income financing activities Cash and cash equivalents at period's start Change in cash and cash equivalents Cash and cash equivalents at period's end Cash flow per share (NOK) 5,61 4,75 0,59 Equity Equity amounted to NOK 1,100 million at the end of the first quarter, and the equity ratio was 65%. 31 Dec Equity at period's start Total comprehensive income Dividends Purchase of own shares Acturial gains/losses in the period Change in non-controlling interests etc Equity at period's end Equity ratio 65 % 68 % 72 % 10

11 Shareholder information Oslo Børs VPS Holding ASA share price: The graph shows movements in the share price of Oslo Børs VPS Holding ASA over the last five years. The company has issued 43,004,000 shares. Approximately 1.3 million shares were traded in the first quarter, with prices from NOK 120 to NOK 129. The last registered trade in the first quarter of 2018 was at NOK 126. Dividends last five years Dividend per share (NOK) 7,00 7,00 8,20 6,75 6,45 8,20 Payout ratio vs EPS adjusted for amortisations and write-downs 113 % 111 % 111 % 92 % 93 % 407 % In addition to dividends above, a special dividend of NOK 4,50 per share was paid out in August Oslo Børs VPS Holding ASA 20 largest shareholders at 23 April

12 Key Figures Financial Earnings per share (NOK) 2,14 2,02 8,30 Diluted earnings per share (NOK) 2,14 2,02 8,30 Earnings per share (NOK) before amortisations and write-down 2,16 2,03 8,36 Change in cash per share (NOK) 5,61 4,75 0,59 Return on equity 35,0 % 33,6 % 33,7 % Return on total capital 30,8 % 30,5 % 31,2 % Net operating margin 46,0 % 45,4 % 44,9 % Operational OSEBX index at period's end 805,32 687,85 814,45 Change in period -1,1 % 0,6 % 19,1 % Equities - no. of transactions (1000s) Equities - value of turnover (NOKbn) Equities - market value listed companies (NOKbn) No. of companies listed Change in period Number of trade transactions processed in VPS (1000s) Number of VPS-accounts (1000s) Derivatives - no. of contracts traded (1000s) Turnover derivatives (NOK million) Financial market data - number of end-users The Board of Directors of Oslo Børs VPS Holding ASA Oslo, 25 April

13 OSLO BØRS VPS HOLDING ASA PO Box 460 Sentrum 0105 Oslo