Key Financial Figures 2010

Sales revenues: PLN 225.6 million – an increase of 13.1%

Operating profit: PLN 91.8 million – an increase of 15.4%

Net profit: PLN 94.8 million – a decrease of 5.8%

EBITDA: PLN 122.6 million – an increase of 16.7%

EBITDA margin: 54.3% – an increase of 1.6 percentage points

Net profit per share: PLN 2.26

 

The Warsaw Stock Exchange has entered the first full year of its operation as a public company with excellent financial results generated by the WSE Group in 2010. The WSE has been and will be a leader of change and innovation on the capital market in Poland and the main stock market in Central and Eastern Europe.” Ludwik Sobolewski, President of the WSE Management Board

The financial results of the WSE Group in 2010 reflect the market situation, the macroeconomic conditions, the status of implementation of the WSE Group business strategy, as well as extraordinary events of historic importance to the development of the Exchange and the Polish capital market. These include mainly the privatisation and the public offering of the WSE completed in November 2010.

In 2010, the WSE Group took advantage of the favourable macroeconomic environment in the Polish economy and the good conditions on the Polish stock market (WIG gained 18.76% and WIG20 14.88% in 2010), and enjoyed the benefits of its international position. This was reflected in the growth of virtually all parameters of the Exchange’s business: capitalisation, trading in shares and derivatives, the number of IPOs, and the number of foreign listings. This translated into considerable growth of the Group’s sales revenues, operating profit, EBITDA, and EBITDA margin.

The year 2010 was a period of change in the structure of the Exchange’s financial model due to the privatisation and its inherent costs. The key factors from this perspective included the payment in 2010 of a cumulative dividend for previous years and a dividend for 2009, which reduced financial revenues (from PLN 32.8 million in 2009 to PLN 10.3 million in 2010), and the cost of the privatisation of the WSE (PLN 8.5 million). Despite effective and efficient achievement of the business targets, these financial parameters specific to 2010 reduced the Group’s net profit year on year. However, the dividend payments in 2010 improved the Group’s ROE.

The dividend for previous years (including 2009) paid by KDPW in January 2011 was a payment from an affiliate and, as such, it was included in the WSE’s stand-alone financial statements. According to IAS 18, the payment was recognised in the Company’s 2010 results.

The year-on-year increase of the sales revenues in 2010 did not involve any major change in the Group’s revenue structure by business line. Trading revenues represented close to 75% of the Group’s total revenues both in 2010 and in 2009. Listing revenues and their share increased modestly (from 7.6% in 2009 to 9.2% in 2010). Revenues from information services, which depend to a certain degree on the euro exchange rate, remained relatively stable; however, their share in the sales revenues decreased modestly (from around 17% to around 15%). The share of revenues from trading in derivatives in total trading revenues increased (revenues up by PLN 1.9 million to PLN 8.6 million, the share up to 7.4%).

The effective and efficient achievement of the business targets in the context of historical transformation of the Exchange of fundamental importance to the entire capital market reflects a significant increase of operating profit by over 15 percent and a year-on-year increase in the operating margin of the WSE Group in 2010.

The increase of operating profit confirms the effectiveness and correctness of the adopted business strategy while the reduction of the profit on all operations of the Group demonstrates two historic processes implemented in 2010: the payment of a share in profits of many years to the shareholders, and the finalisation of the privatisation of the WSE.” Ludwik Sobolewski, President of the WSE Management Board