MOEX announces net profit growth of 16% in Q1 2021

Moscow Exchange Group (MOEX) reported its results for the first quarter of 2021. The Russian market operator announced strong performance in fee income from the Equities and Derivatives Markets as well by the Money Market and Depository & Settlement Services helping the exchange sustain double-digit F&C income growth.

MOEX highlighted that fee and commission (F&C) income rose 17.0% to RUB 9,252.9 million compared to the same period last year.

Operating income was increased 7.2% YoY and F&C income accounted for more than 70% of operating income for the third consecutive quarter.

Moscow Exchange

EBITDA added 13.9% and the EBITDA margin grew to 73.0%. The adjusted EBITDA margin reached 71.7%.

Net profit rose 15.8% YoY to RUB 6,835.3 million and adjusted net profit increased by 1.6%.

Yury Denisov, Chief Executive Officer of Moscow Exchange, said:

Yury Denisov, MOEX

Yury Denisov

Moscow Exchange had a successful start to the year: trading volumes grew across most markets and we delivered strong financial results. The Exchange continues to actively develop its product line and expand opportunities for all types of investors.

Denisov continued:

We have now made it possible to trade currencies with an order size of just one USD or one EUR. We see strong interest in new stock placements on Moscow Exchange. Notably, Segezha Group recently debuted, raising RUB 30 billion on our market. In the quarters ahead we expect to see stronger activity on the Bond Market; the market is gradually adapting to the higher interest rate environment. We continue to deliver on our strategic initiatives and we are optimistic about the growth of our business this year.

Max Lapin, Chief Financial Officer of Moscow Exchange, said:

Max Lapin, MOEX

Max Lapin

We maintained a double-digit F&C growth this quarter at the level of 17%, in line with the strategic target, despite the elevated base of last year. The first quarter of 2020 featured extraordinary volatility, whereas the backdrop of the first quarter of this year was rather tepid. Nevertheless, market activity was strong as we witnessed F&C income from the Equities and Derivatives Markets post new records. Equities Market velocity during the quarter was almost at the level of 1Q 2020, supported by retail investor activity.

Lapin added:

Continued demand for repo operations drove a very solid performance of the Money Market as well as Depository and Settlement Services. Both business lines approached the 40% growth rate. The latter also feeds off a surge in the value of assets held in custody.

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