Financial Review:

Group earnings after tax for 2014 increased by 25% to R634 million (2013: R507 million), with operating revenue growing by 13% (2013: 12%) to R1.8 billion (2013: R1.6 billion). This performance is underpinned particularly by good growth in annuity revenue from listed companies (with 24 new listings in 2014) and products as well as notable cost management.

The following areas also made healthy contributions to revenue:

  • Equity Market, where billable value traded grew by 7% year-on-year resulting in an 11% increase in revenue to R426 million (2013: R385 million);
  • Post-Trade Services,  where a combination of billable value traded growth and rebates given in the prior year resulted in growth of 20% to R299 million (2013: R249 million);
  • Market Data where revenue grew 15% to R203 million (2013: R177 million) as a result of the growth in the number of data terminals and increased passive tracking; and
  • In addition, new revenue lines in colocation and issuer services generated R9 million and R2 million respectively.

Total operating expenses increased by 5.5% to R1.14 billion (2013: R1.08 billion).   Personnel, technology and technology related costs (depreciation) continue to be the principal components of our largely fixed cost base.  With continued investment in technology, the technology component of our costs will increase over time.

Group earnings before interest and tax (EBIT) increased by 22% (2013: 42%) to R704 million (2013: R578 million). The earnings per share (EPS) rose to 742.4 cents (up 25%) and headline earnings per share (HEPS) to 735.0 cents (up 14%) respectively.

This performance, which is net of a rebate to Equity market clients for their back office fees, enabled the JSE to declare a total dividend of R417 million (2013: R348 million) or 480 cents per share (2013: 400 cents), 20% above the total dividend paid in 2013 and a record high dividend payout.

 The year ended in a solid cash position, with R1.6 billion in cash (2013: R1.4 billion).  Ongoing investment in business remains crucial and the JSE continues to apply cash to strategic investments which will position the JSE to better serve its clients and, in so doing, for long term sustainability.

Looking forward

In 2015, the JSE’s has stated that it’s top priorities are progressing the move of the Equity Market to a three-day settlement cycle (T+3) and to the integration of trading and clearing platforms.  Much corporate energy and investment will be dedicated to progressing these.   At the same time, the JSE said it is conscious that the financial market landscape is changing fast and so continues to work on its initiatives.

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