Sales Revenue

The Group has three revenue-generating segments:

  • financial market,
  • commodity market,
  • other revenues

Revenues from the financial market include revenues from:

  • trading;
  • listing;
  • information services.

Trading revenue includes fees paid by market participants in respect of:

  • transactions on markets of equities and equity-related instruments;
  • transactions in derivative financial instruments;
  • transactions in debt instruments;
  • transactions in other cash market instruments;
  • other fees paid by market participants.

Revenues from transactions in equities and equity-related securities are the Group’s main source of trading revenues and its main source of sales revenues in general.

Revenues from transactions in derivative financial instruments are the second biggest source of trading revenues on the financial market. Transactions in WIG20 index futures account for the majority of revenues from transactions in derivatives.

Revenues from other fees paid by market participants include mainly fees for services providing access to the trading system.

Revenues from transactions in debt instruments are generated by the Catalyst market as well as Treasury BondSpot Poland operated by the WSE’s subsidiary BondSpot S.A.

Revenues from transactions in other cash market instruments include fees for trading in structured products, investment certificates, warrants and ETF units.

Listing revenues include two main segments:

  • one-off fees paid by issuers for introduction and admission of new shares and other instruments to trading on the exchange;
  • periodic listing fees.

Revenues from information services mainly include fees paid by data vendors for real-time market data as well as historical and statistical data. Real-time data fees include fixed annual fees and monthly fees based on the data vendor’s number of subscribers and the scope of data feeds used by a subscriber.

Revenues of the Group in the commodity market segment include revenues of PolPX and WCCH, and revenues of WSEInfoEngine as a trade operator. Until the end of Q1 2013, the Group also earned revenues from the operation of the poee WSE Energy Market.

In December 2012, the WSE Management Board decided to concentrate trade in energy on the market of the Polish Power Exchange and to discontinue organising trading in exchange commodities on the poee WSE Energy Market as of the end of Q1 2013.

The commodity market segment includes the following sub-segments:

  • trading,
  • operation of the Register of Certificates of Origin of electricity,
  • clearing.

Trading revenue on the commodity market includes:

  • revenue from trading in electricity (spot and forward),
  • revenue from trading in natural gas (spot and forward),
  • revenue from trading in property rights in certificates of origin of electricity,
  • other fees paid by market participants (members).

Revenues from the operation of trade in electricity include revenues from transactions on the poee WSE Energy Market (until the end of Q1 2013) as well as revenues of PolPX on the Intra-Day Market, the Day-Ahead Market, the Commodity Forward Instruments Market, and Electricity Auctions. Revenues from trade in natural gas include revenues of PolPX on the Day-Ahead Market, the Intra-Day Market and the Commodity Forward instruments. Revenues from trade in property rights in certificates of origin of electricity include revenues of PolPX from such trade. Other fees paid by market participants include flat-rate fees paid by market participants of the poee WSE Energy Market (until the end of Q1 2013) and PolPX, as well as revenues of WSEInfoEngine as a trade operator.

The sub-segment of operation of the Register of Certificates of Origin of electricity includes revenues of PolPX from that activity. Revenues of the sub-segment “clearing” include revenues of the company WCCH, which clears and settles transactions on the exchange commodities, manages the resources of the clearing guarantee system and determines the amount of credits and debits of WCCH members resulting from their transactions.

The Group’s other revenues include revenues of the subsidiaries Instytut Rynku Kapitałowego – WSE Research S.A., as well as revenues of WSE and the PolPX Group, among others, from educational services, office space lease, and sponsorship.

The Group’s sales revenues amounted to PLN 283.8 million in 2013, an increase of 3.6% (PLN 9.9 million) compared to 2012. The year-on-year increase in revenues was driven by an increase in revenues of the Group from the commodity market operated by PolPX Group (by PLN 14.7 million), which was mainly related to the acquisition of PolPX in 2012. The Group’s revenues from the commodity market amounted to PLN 76.0 million in 2013 compared to PLN 62.6 million in 2012. Revenues from the financial market in that period decreased by 1.4% (PLN 2.9 million) mainly as a result of:

  • decrease in the volume of trading in WIG20 index futures (by 9.0%);
  • modification of the price list for trading in derivatives as of 1 January 2013 including the introduction of day trading and a reduction of fees for index futures from PLN 1.7 to PLN 1.6;
  • lower revenue from trading in debt instruments on Treasury BondSpot Poland due to a decrease of the value of cash and conditional transactions.

The Group’s quarterly sales revenues amounted to PLN 70.8 million in Q4 2013, an increase of 2.7% (PLN 1.8 million) compared to Q3 2013 and a decrease of 4.4% (PLN 3.3 million) compared to Q4 2012. The increase in sales revenues compared to Q3 2013 was driven mainly by a 4.1% increase in revenues from the financial market segment, mainly including trading in equities and equity-related instruments, information services, and listing. Revenues from the commodity market were stable in Q3 and Q4 2013 at PLN 18.7 million and PLN 18.8 million, respectively.

Revenues from the financial market segment amounted to PLN 51.5 million in Q4 2013, an increase of 4.1% (PLN 2.0 million) compared to Q3 2013 and an increase of PLN 1.5 million (3.1%) compared to Q4 2012. The increase in revenues from the financial market segment in Q4 2013 compared to Q4 2012 was driven mainly by an increase of revenues from transactions in equities and equity-related instruments (by PLN 3.0 million) as well as an increase of revenues from information services (by PLN 0.4 million). At the same time, there was a decrease of revenues from transactions in derivatives (by PLN 0.9 million) and trading in debt instruments on Treasury BondSpot Poland (by PLN 0.8 million).

  • Revenues from the commodity market segment stood at PLN 18.8 million in Q4 2013, a decrease of 21.2% (PLN 5.1 million) compared to Q4 2012. The decrease in revenues on the commodity market was reported in the trading sub-segment (a decrease of PLN 2.4 million), the operation of the Register of Certificates of Origin of electricity (a decrease of PLN 1.0 million) and clearing (a decrease of PLN 1.6 million).

The consolidated revenues of the WSE Group in 2013 include among others the revenues of the PolPX Group at PLN 74.6 million and the revenues of BondSpot S.A. at PLN 12.5 million.

Consolidated revenues of WSE Group and revenue structure in selected quarters of 2012 and 2013

PLN'000, % Three-month period endedYear ended 31 December
31 December 2013%30 September 2013%31 December 2012%2013%2012%
Financial market51 52773%49 50772%49 98367%205 25472%208 14476%
Trading 36 441 51% 35 732 52% 35 534 48% 147 899 52% 150 112 55%
Equities and equity-related instruments 27 541 39% 26 094 38% 24 590 33% 108 424 38% 101 166 37%
Derivative instruments 4 789 7% 5 451 8% 5 708 8% 21 207 7% 26 944 10%
Other fees paid by market participants 1 412 2% 1 375 2% 1 716 2% 5 743 2% 6 873 3%
Debt instruments 2 652 4% 2 764 4% 3 485 5% 12 339 4% 14 960 5%
Other cash instruments 47 0% 49 0% 34 0% 186 0% 168 0%
Listing 5 716 8% 5 248 8% 5 516 7% 22 289 8% 21 540 8%
Listing fees 4 209 6% 4 269 6% 4 095 6% 17 184 6% 16 520 6%
Introduction and admission fees, other fees 1 507 2% 979 1% 1 421 2% 5 105 2% 5 019 2%
Information services 9 370 13% 8 527 12% 8 933 12% 35 066 12% 36 493 13%
Commodity market18 84827%18 71027%23 91032%75 99527%62 64623%
Trading 10 774 15% 10 743 16% 13 165 18% 39 906 14% 30 164 11%
Electricity 3 798 5% 4 100 6% 5 303 7% 13 607 5% 11 129 4%
Spot 645 1% 573 1% 778 1% 2 545 1% 2 780 1%
Forward 3 153 4% 3 527 5% 4 525 6% 11 062 4% 8 349 3%
Gas 67 0% 10 0% - 0% 99 0% - 0%
Spot 10 0% 4 0% - 0% 25 0% - 0%
Forward 57 0% 6 0% - 0% 74 0% - 0%
Property rights in certificates of origin 4 750 7% 4 968 7% 4 759 6% 19 053 7% 11 821 4%
Other fees paid by market participants 2 159 3% 1 665 2% 3 103 4% 7 147 3% 7 214 3%
Register of certificates of origin 2 996 4% 2 735 4% 4 038 5% 15 605 5% 16 549 6%
Clearing 5 078 7% 5 232 8% 6 707 9% 20 484 7% 15 933 6%
Other revenue4721%7831%2210%2 5131%3 0351%
Total70 847100%69 000100%74 114100%283 762100%273 825100%

The Group generates sales revenues both from Polish and foreign clients. The table below presents the quarterly and annual revenues by client category.

Consolidated revenues of WSE Group by foreign and local customers in 2012-2013 and in selected quarters of 2012 and 2013

PLN'000, % Three-month period endedYear ended 31 December
31 December 2013%30 September 2013%31 December 2012%2013%2012%
Revenue from foreign customers 14 798 21% 13 310 19% 12 497 17% 58 978 21% 52 163 19%
Revenue from local customers 56 049 79% 55 690 81% 61 617 83% 224 784 79% 221 662 81%
Total70 847100%69 000100%74 114100%283 762100%273 825100%

The average exchange rate EUR/PLN in 2013 and 2012 was 4.20 EUR/PLN and 4.19 EUR/PLN, respectively. The average exchange rate EUR/PLN in Q4 2013, Q3 2013 and Q4 2012 was 4.18 EUR/PLN, 4.25 EUR/PLN and 4.11 EUR/PLN, respectively.

The Group is not dependent on any single customer as no customer has a share above 10% of total sales revenues.