16.06.2023 09:13

Moscow Exchange announces results for the full year 2022

Unless stated otherwise, all figures below refer to performance in 2022 and all comparisons are with the previous year, based on IFRS financials.

HIGHLIGHTS FOR 2022

  • F&C income was down 9.8% to RUB 37.5 bln as non-resident trading discontinued and RUB asset prices declined.
  • Operating expenses added 16.2%, comfortably below the FY’22 OPEX guidance.
  • EBITDA rose 28.4% to RUB 49.7 bln. Net profit added 29.2% to RUB 36.3 bln.

PERFORMANCE OF KEY BUSINESS LINES

  FY 2022 FY 2021 Change Q4 2022 Q4 2021 Change
Equities Market
Fee and commission income, RUB mln 3 266.3 5 200.8 -37.2% 701.8 1 559.0 -55.0%
Trading volumes, RUB bln 17 595.4 29 996.8 -41.3% 2 656.7 9 243.7 -71.3%
Bond Market
Fee and commission income, RUB mln 2 003.6 2 431.6 -17.6% 982.0 601.2 63.3%
Trading volumes (ex. overnight bonds), RUB bln 12 865.0 18 608.7 -30.9% 6 673.3 4 629.1 44.2%
FX Market
Fee and commission income, RUB mln 5 661.6 4 191.4 35.1% 1 508.5 1 154.1 30.7%
Trading volumes, RUB bln 267 838.1 322 032.3 -16.8% 50 716.2 81 518.8 -37.8%
Money Market
Fee and commission income, RUB mln 9 497.0 11 699.1 -18.8% 2 416.2 3 372.6 -28.4%
Trading volumes, RUB bln 672 733.2 476 352.0 41.2% 165 830.2 133 351.4 24.4%
Derivatives Market
Fee and commission income, RUB mln 3 741.3 5 198.4 -28.0% 924.9 1 638.5 -43.6%
Trading volumes, RUB bln 77 875.8 158 529.3 -50.9% 11 343.7 45 676.1 -75.2%
ITSLM (IT Services, Listing and Marketplace) fee income
Information services, RUB mln 1 118.2 1 185.8 -5.7% 258.1 306.8 -15.9%
Sale of software and tech services, RUB mln 1 221.2 1 133.6 7.7% 361.4 302.6 19.4%
Listing and other services, RUB mln 578.0 763.8 -24.3% 199.0 233.4 -14.7%
Financial marketplace services, RUB mln 747.4 497.0 50.4% 217.9 182.9 19.1%
             
Other business lines, RUB mln 9 652.6 9 252.5 4.3% 2 285.4 2 611.7 -12.5%
             
Total fee and commission income, RUB mln 37 487.2 41 554.0 -9.8% 9 855.2 11 962.8 -17.6%
  • The total market capitalization of the Equities Market at the end of 2022 was RUB 38.4 trln (USD 530.1 bln). Fee and commission income from the Equities Market was down 37.2% on the back of a similar decrease in trading volumes. Foreign investors, a major client category of the Equities Market, were largely unable to operate, triggering the decrease in trading volumes.
  • Fee income from the Bond Market decreased 17.6% while trading volumes (excluding placements of overnight bonds) contracted by 30.9%. Primary market volumes (excluding placements of overnight bonds) were down 25.4%, mostly driven by lower OFZs & OBRs placements in a volatile interest rate environment. Secondary market trading volumes declined by 35.5%. Effective fee dynamics were supported by the migration of trading volumes to value-added, CCP-based trading modes.
  • Fee income from the FX Market was up 35.1%. Trading volumes were down 16.8%. Spot volumes added 5.5%, while swap volumes declined by 26.2%. There are two major factors behind the effective fee dynamics. First, the trading volume mix substantially improved towards the more profitable spot segment. Second, the new tariff structure that came into effect on the 1st of August and favoured liquidity makers also supported the effective fee.
  • Money Market fee income was down 18.8%. Trading volumes grew 41.2%. The effective fee dynamics is mainly explained by the 38% decline of the average repo terms as the planning horizon deteriorated. GCC-repo volumes improved by 58.8% to reach RUB 133 trln. CCP repo trading volumes improved 22.6%.
  • The Derivatives Market F&C income declined by 28.0%. The trading volume dropped 50.9% as foreign investors discontinued operations. The discrepancy between fee income and volume dynamics was the result of a shift in volumes’ mix towards FX derivatives and the new asymmetric tariff structure implemented in June 2022.
  • IT Services, Listing and Marketplace fee income line was largely driven by revenue from financial marketplace Finuslugi. Sale of software and tech services improved by 7.7%. Listing and other services decreased 24.3% as primary market activity deteriorated. Sales of information services declined by 5.7%, primarily on the back of RUB appreciation during the year.

BALANCE SHEET SUMMARY, RUB mln

  FY 2022 FY 2021 Change
Total Assets 6 619 280.3 6 143 438.3 7.7%
Total Liabilities 6 442 538.5 6 003 267.3 7.3%
Total Equity 176 741.8 140 171.0 26.1%

OPEX BREAKDOWN

  FY 2022 FY 2021 Change Q4 2022 Q4 2021 Change
General and Administrative Expenses 11 860.9 10 632.9 11.5% 2 899.0 3 388.1 -14.4%
Amortisation of intangible assets 3 184.4 2 717.6 17.2% 846.6 700.2 20.9%
Equipment and intangible assets maintenance 1 779.9 1 912.1 -6.9% 347.4 558.8 -37.8%
Advertising and marketing costs 1 563.6 835.5 87.1% 153.0 570.9 -73.2%
Depreciation of property and equipment 1 176.0 971.9 21.0% 288.4 266.4 8.3%
Taxes, other than income tax 951.2 787.8 20.7% 153.7 291.5 -47.3%
Professional services 808.0 629.6 28.3% 268.1 216.2 24.0%
Agent fees 453.3 328.6 37.9% 104.9 131.9 -20.5%
Market makers fees 438.4 764.1 -42.6% 138.0 201.6 -31.5%
Registrar and foreign depository services 389.5 620.8 -37.3% 134.7 143.2 -5.9%
Rent and office maintenance 350.3 337.9 3.7% 96.9 73.1 32.6%
Information services 202.9 433.5 -53.2% 64.5 128.9 -50.0%
Loss on disposal of property, equipment and intangible assets 119.9 13.5 788.1% 109.3 12.9 747.3%
Charity 114.1 34.9 226.9% 107.9 15.6 591.7%
Communication services 103.9 104.3 -0.4% 26.1 32.8 -20.4%
Security expenses 29.7 29.8 -0.3% 7.3 6.8 7.4%
Business trip expenses 22.1 16.8 31.5% 6.0 5.3 13.2%
Transport expenses 21.9 21.0 4.3% 5.7 4.0 42.5%
Other 151.8 73.2 107.4% 40.5 28.0 44.6%
Personnel expenses 11 982.3 9 881.7 21.3% 3 147.1 2 707.4 16.2%
Employees benefits except for share-based payments 9 758.0 7 839.0 24.5% 2 623.4 2 210.5 18.7%
Payroll related taxes 1 960.0 1 620.8 20.9% 459.6 389.6 18.0%
Share-based payment expense on equity settled instruments 228.6 372.6 -38.6% 46.3 83.5 -44.6%
Share-based payment expense on cash settled instruments 35.7 49.3 -27.6% 17.8 23.8 -25.2%
             
Total operating expenses 23 843.2 20 514.6 16.2% 6 046.1 6 095.5 -0.8%
             
Headcount, employees e-o-p 2 339 2 279 2.6% 2 339 2 279 2.6%
  • FY’22 OPEX increased by 16.2%, fitting the FY’22 OPEX guidance of below 20%.
  • OPEX for 4Q’22 came virtually unchanged, decreasing by 0.8% YoY, as dynamics of personnel and G&A expenses offset each other.
  • The 16.2% YoY rise in 4Q’22 personnel expenses decomposes into: [1] 17.0 p.p. net effect of additional bonus provisions, [2] -0.8 p.p. other factors.
  • Headcount measured by the number of employees was up 2.6% YoY.
  • Advertising and marketing costs in 4Q’22 decreased 73.2% YoY as the Finuslugi promo campaign came to a conclusion.
  • Loss on disposal of property, equipment and intangible assets line surged 8x 4Q’22 as obsolete software was written off.
  • D&A and IT maintenance declined by 2.8% YoY in 4Q’22, while D&A was up 17.4%. The latter is explained by the higher CAPEX of 4Q’21. IT maintenance costs decreased 37.8% YoY in 4Q’22 as foreign vendors discontinued their service.
  • The cash position[1] at the end of 2022 was RUB 107.33 bln. The company had no debt as of the end of the reporting period.
  • CAPEX for the year amounted to RUB 4.18 bln, in-line with the FY’22 guidance of RUB 3.8-4.3 bln. It was mostly attributable to purchases of software and equipment as well as software development.
  • The FY’23 OPEX growth expectation is 12-16% YoY.
  • FY’23 CAPEX guidance range is RUB 4-7 bln. Actual spend depends on the implementation of software & hardware renewal program.


Contacts:

Investor Relations: Public Relations:
Anton Terentiev
+7 495 363 3232
ir@moex.com
Lev Bystrov
+7 495 363 3232
pr@moex.com

NOTES TO EDITORS

About Moscow Exchange

Moscow Exchange Group operates Russia’s main trading platform for equities, bonds, derivative instruments, currencies, money market instruments and commodities. The Group includes the central securities depository (National Settlement Depository), and a clearing center (National Clearing Centre), performing the functions of central counterparty on the markets, which allows Moscow Exchange to offer its clients the full spectrum of trading and post-trading services. Moscow Exchange held the initial public offering of its shares on 15 February 2013 (ticker MOEX).

Disclaimers

Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in the Russian Federation, rapid technological and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations.

 
[1] Cash position is calculated as the sum of Cash and cash equivalents, Financial assets at fair value through profit and loss, Due from financial institutions, Financial assets at fair value though other comprehensive income, Current tax prepayments and Other financial assets less Balances of market participants, Overnight bank loans, Distributions payable to holders of securities, Margin account, Liabilities related to assets held for sale, Current tax payables and Other financial liabilities.
Contacts for media
+7 (495) 363-3232
Public Relations Department
Contacts for clients
+7 (495) 232-3363
Feedback form
Investor Relations News