JSE declares record total dividend
The Johannesburg Stock Exchange (JSE) has announced its results for the full year ended December 2021, showing a 3% growth in operating revenue to R2.52 billion.
The record low interest rate environment did impact net profit, however, with headline earnings per share (HEPS) slipping 6% to 878.9 cents (2020: 936.7 cents per share).
Earnings before interest, tax, depreciation and amortisation (EBITDA) of R1.06 billion matched the prior year while EBITDA margin was healthy at 41% (2020: 42%), the group said.
“The JSE has delivered robust performance under a challenging macro-economic and trading environment. Our resilience while navigating an unfamiliar route through the pandemic has confirmed the value of the investments we have made in our technology platforms over an extended period,” said Group CEO Dr Leila Fourie.
This performance was attributable to disciplined cost management, a positive contribution from JSE Investor Services (JIS) and a rebound in value traded in the second half of 2021.
Strong cash generated from operations has enabled the board to declare an ordinary dividend of 754 cents per share for 2021, an increase of 4% YoY, the group said. “Given that the group remains well capitalised with a healthy balance sheet that supports its regulatory capital requirements and growth strategy, the board has declared a special dividend of 100 cents per share,” it said.
“Our core business model, centered around quality earnings and strong cash generation, continues to provide a solid foundation for growth. We are transforming in line with a changing marketplace. Our inorganic strategy is beginning to demonstrate the intended benefit of diversification. The JSE remains committed to accelerating organic and inorganic growth to unlock responsible value creation and shareholder returns,” said Fourie.
“We have made strides in our diversification strategy and in improving the resilience of our technology and systems. A focus on execution, in addition to a few high-impact priorities, will underpin business activities in 2022. Our long-term strategic objectives are to grow and diversify revenue, invest in operational robustness and resilience, and further entrench sustainability in the business.”
The group pointed to an average headcount of 519 (2020: 500): 408 at JSE (2020: 402) and 111 at JIS (2020: 98), as personnel expenses of 650 million, was up 8%, while technology costs climbed 5% to R337 million.
The JSE pointed to 25 company de-listings (2020: 20) largely through M&A and/or corporate action in the small to mid-cap space.
Delistings outpace new listings across a majority of exchanges
“The JSE continues to strengthen its operating resilience by investing in technology, latency and security, and our staff. The real-world stress tests of the past two years have proven the value of those investments. The business is well-positioned to deliver sustainable value for clients, employees, shareholders and the broader economy, remaining well capitalised and cash generative,” said Fourie.
Read: ‘End of an era’ as PSG set to delist from JSE
