Financial Results Review
In 2018, the Exchange reported record fee and commission income. Fees and commissions accounted for 59% of total operating income, the highest share ever in the Exchange’s history as a public company. Net interest and other finance income Calculated as the sum of interest and other finance income, gains/losses on FVTOCI, gains/losses on AFS and foreign exchange gains less losses less interest expense. slightly decreased on the back of lower realized gains/losses from investment portfolio revaluation. As a result, MOEX’s operating income rose 3.5% YoY
The Exchange maintained its focus on cost control. Operating expenses (net of other operating expenses) increased 7.6% YoY, primarily on the back of rising amortization and amortization expenses. In early 2018, the company revised amortization schedules and reduced useful lives of certain intangible assets. As a result, the amortization expense for the year increased. Excluding this impact, operating expenses added just 5.1% YoY.
Changes in the cost Operating expenses (net of other operating expenses) excluding amortization and depreciation expenses. and revenue structure led to a further reduction in the cost-to-income ratio, underscoring that greater operating efficiency was the key driver of higher fee income, not that fee growth outstripped cost growth.
EBITDA grew by 2.6% YoY. The EBITDA margin remained strong at 72.1%. Net profit declined 2.6% YoY.
|Operating expenses||30,394.0||45,990.0||43,567.2||38,538.9||39,901.4||3.5 %|
|Fee and commission income||15,586.0||17,784.0||19,797.6||21,207.6||23,647.1||11.5 %|
|Net interest and other finance income||14,279.4||28,084.9||23,695.0||17,285.3||16,061.0||-7.1 %|
|Other operating income||528.7||121.1||74.6||46.0||193.3||320.2 %|
|Operating Expenses (excl. other operating expenses)||-10,373.3||-11,271.9||-12,259.4||-13,431.8||-14,453.7||7.6 %|
|Operating Profit (before other operating expenses)||20,020.8||34,718.1||31,307.8||25,107.1||25,447.7||1.4 %|
|EBITDA (before other operating expenses)||21,616.1||36,519.0||33,602.1||28,059.6||28,787.2||2.6 %|
|EBITDA margin, %||71.1||79.4||77.1||72.8||72.1||-0.7 p. p.|
|Other operating expenses||–||–||–||–||-1,075.2||–|
|Net Profit||15,993.2||27,852.1||25,182.6||20,255.2||19,720.3||–2.6 %|
|Basic earnings per share, RUB||7.21||12.51||11.22||9.02||8.76||–2.8 %|