NGX GROUP announces 16.3% decline in revenue to N3.2bn

By Philemon Adedeji

Nigerian Exchange Group Plc (‘NGX Group’ or ‘The Group’) announced its unaudited results for the half year ended 30th June 2023, announcing 16.3 per cent declined in profit to N3.2 billion at the end of June 30th, 2023 from N3.82 billion reported in the comparable period of 2022

The decline in revenue  was driven by 14.6 per cent decline in treasury investment income (27.1 per cent of revenue) to N869 million in June 2023 relative to N1,017.4 million in the comparative period in 2022 primarily driven by a comparative reduction in our treasury holdings year over year.

Gross earnings recorded a decrease of 12.5 per cent to N3.70 billion from N4.22 billion as of June 2022, while other income increased by 24.9 per cent to N490 million from N393 million in the same period.

Profit before income tax (PBT) declined by 40.6 per cent to N726 million in June 2023 from N1,223.2 million in the corresponding period in 2022 due to a reduction in the top line YoY.

Profit after income tax ( PAT) declined by 45.9 per cent to N444.1 million from N820.2 million. This also resulted in a decline in profit after-tax margin to 12.03 per cent from 19.45 per cent recorded in June 2022.

Total assets decreased by 3.7 per cent to N54.94 billion from N57.06 billion in December 2022, driven primarily by a 33.1 per cent decline in Trade and other receivables to N712.86 million from N1,065 million in December 2022, and moderated by a 5.31 per cent growth in Cash and Cash equivalent to N5 billion from N4.75 billion in Dec. 2022.

Total liabilities saw a 12.3 per cent reduction, falling from N20.3 billion in December 2022 to N17.8 billion. This decrease was primarily due to the repayment of a term loan that was used to finance investments in selected associates.

Commenting on the results, the Group Managing Director/Chief Executive Officer, Mr.Oscar N. Onyema (OON) said, “While our half-year financial results for 2023 may reflect the impact of economic headwinds, NGX Group demonstrated resilience by recording a profit before tax of N0.7 billion.

“We are optimistic that with market friendly pronouncements already made by the new government, trading and listing activities will continue the positive impact experienced in June 2023.

“Consistent with our strategic objective to maximise shareholder value, the Board of Directors has consented to an interim dividend of N0.25 Kobo per ordinary share of 50 Kobo. This translates to a total payout of N495,532,893 (Four Hundred and ninety-five million, five hundred and thirty-two thousand, eight hundred and ninety-three Naira).

“This initiative underscores better flow through of dividend from an associate company and first-time dividend payment from our flagship subsidiary. It also emphasises our continued commitment to working collaboratively with our shareholders and other stakeholders in creating and distributing value, even in challenging market conditions.”