Annual
The Group’s sales revenues amounted to PLN 283.8 million in 2013, an increase of PLN 9.9 million (3.6%) compared to 2012.
Operating expenses amounted to PLN 166.2 million in 2013, an increase of 11.9% (PLN 17.7 million) year on year. The increase in operating expenses was driven mainly by the consolidation of expenses of the PolPX Group in all of 2013 as well as a PLN 9.2 million increase in depreciation and amortisation mainly due to the completed implementation of the new trading system UTP. The operating expenses of PolPX Group consolidated by the WSE Group increased by PLN 5.2 million year on year in 2013.
The Group generated an operating profit of PLN 118.6 million in 2013, a decrease of 5.3% (PLN 6.6 million) compared to 2012. The decrease in operating profit of 2013 was driven mainly by an increase of operating expenses by 11.9% combined with a relatively lower increase of total sales revenues (3,6%).
EBITDA stood at PLN 156,9 million in 2013, an increase of 3.8% (PLN 5.8 million) compared to PLN 151.1 million in 2012.
The Group’s net profit was PLN 113.5 million in 2013, an increase of PLN 7.3 million (6.9%) year on year. The increase was driven among others by a significant decrease of interest costs of the debt service relating to the bond issue (PLN 4.3 million), as well as an increase in the share of profit of associates by PLN 3.3 million.
A comparison of the WSE Group’s current results in the context of the 2012 figures must take into account that WSE took control of the PolPX Group in 2012. The results of the PolPX Group were consolidated by the WSE Group as of March 2012.
WSE generated a separate operating profit of PLN 69.1 million in 2013 compared to PLN 75.9 million in 2012. The decrease in the operating profit was driven by higher operating expenses, including depreciation and amortisation due to the implementation of WSE’s new trading system UTP, as well as salaries, fees and charges and rent and other maintenance fees. The net profit generated by WSE in 2013 was PLN 101.4 million compared to PLN 65.6 million in 2012. The net profit increased among others owing to dividends received from subsidiaries and associates (including a dividend from PolPX at PLN 33.9 million) and a lower income tax expense owing to a recognised tax relief for investment in new technologies including among others the UTP project. As a result, the income tax was reduced by PLN 7.0 million in 2013, of which PLN 1.1 million referred to previous years investment was settled in Q1 2013, whereas PLN 5.9 million referred to UTP tax relief for investment in 2013 was recognised in Q4 2013.
The PolPX Group generated an operating profit of PLN 48.0 million and a net profit of PLN 41.8 million in 2013, as compared to PLN 45.7 million and PLN 38.8 million, respectively, in 2012, of which the WSE Group’s consolidated results only included the profits as of March 2012, i.e., PLN 37.1 million and PLN 31.5 million, respectively.
BondSpot generated an operating profit of PLN 3.7 million and a net profit of PLN 3.3 million in 2013, as compared to PLN 6.9 million and PLN 6.1 million, respectively, in 2012.
Quarterly
The Group’s sales revenues were PLN 70.8 million in Q4 2013, a decrease of 4.4% (PLN 3.3 million) compared to Q4 2012 and an increase of 2.7% (PLN 1.8 million) compared to Q3 2013. Operating expenses were PLN 45.1 million in Q4 2013, an increase of 13.6% (PLN 5.4 million) year on year and an increase of 12.1% (PLN 4.9 million) compared to Q3 2013.
The Group generated an operating profit of PLN 26.4 million and a net profit of PLN 28.5 million in Q4 2013, as compared to PLN 28.5 million and PLN 26.0 million in Q3 2013 and PLN 26.9 million and PLN 20.1 million in Q4 2012, respectively.
The net profit generated by the Group was PLN 28.5 million in Q4 2013, as compared to PLN 26.0 million in Q3 2013 and PLN 20.1 million in Q4 2012. The net profit in Q4 2013 was driven by the recognised tax relief for investment in new technologies in the UTP licence in 2013. As a result, the current income tax was reduced by PLN 5.9 million in 2013.
WSE generated an operating profit of PLN 16.7 million in Q4 2013, as compared to PLN 16.8 million in Q3 2013 and PLN 10.7 million in Q4 2012. The operating profit increased in Q4 2013 compared to Q4 2012 mainly as a result of goodwill impairment losses of poee, IRK and S.C. SIBEX in Q4 2012 as well as higher external service charges, depreciation and amortisation in Q4 2013. The net profit was PLN 18.9 million in Q4 2013, as compared to PLN 12.6 million in Q3 2013 and PLN 5.1 million in Q4 2012. The high net profit in Q4 2013 was mainly driven by the recognised tax relief for investment in new technologies in the UTP licence in 2013. As a result, the current income tax was reduced by PLN 5.9 million in November 2013.
The PolPX Group generated an operating profit of PLN 10.6 million in Q4 2013, as compared to PLN 11.8 million in Q3 2013 and PLN 13.9 million in Q4 2012. The net profit of the PolPX Group was PLN 9.1 million, PLN 10.0 million and PLN 12.0 million, respectively.
BondSpot S.A. generated an operating profit of PLN 0.3 million in Q4 2013, as compared to PLN 0.7 million in Q3 2013 and PLN 1.3 million in Q4 2012. The net profit of the BondSpot S.A. was PLN 0.1 million, PLN 0.6 million and PLN 1.0 million, respectively.
Detailed information on changes in revenues and expenses is presented in the sections below.
The results of the Group in Q4 2013 and in all of 2013 are not directly comparable to the results of 2012 mainly due to the following factors:
- consolidation of the PolPX Group as of March 2012;
- goodwill impairment losses of the poee WSE Energy Market and S.C. SIBEX in 2012 charged to other expenses (PLN 8.9 million);
- higher cost of severance pay and non-compete agreements of former WSE Management Board Members in 2013 (PLN 0.9 million);
- impact in Q1 2012 of fair value measurement of a minority stake of PolPX held by WSE before taking control (PLN 4.5 million);
- amendment of WSE’s accounting policy concerning impairment of receivables in 2012 (PLN 2.9 million); in addition, WSE received a reimbursement of PLN 1.7 million from employees in Q4 2012 in respect of the settlement of medical services as payment of outstanding contributions and personal income tax for medical packages from 2006 till January 2012.
Consolidated profit and loss account of WSE Group in 2012 and 2013 by quarter
| PLN'000 | 2013 | 2012 | 2013 | 2012 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Sales revenue | 70 847 | 69 000 | 64 557 | 79 358 | 74 114 | 65 663 | 70 110 | 63 938 | 283 762 | 273 825 |
| Financial market | 51 527 | 49 507 | 51 701 | 52 519 | 49 983 | 49 862 | 51 341 | 56 958 | 205 254 | 208 144 |
| Trading | 36 441 | 35 732 | 37 543 | 38 182 | 35 534 | 35 837 | 36 504 | 42 237 | 147 899 | 150 112 |
| Listing | 5 716 | 5 248 | 5 588 | 5 737 | 5 516 | 5 193 | 5 541 | 5 289 | 22 289 | 21 540 |
| Information services | 9 370 | 8 527 | 8 570 | 8 599 | 8 933 | 8 832 | 9 296 | 9 432 | 35 066 | 36 493 |
| Commodity market | 18 848 | 18 710 | 12 307 | 26 130 | 23 910 | 14 789 | 17 812 | 6 135 | 75 995 | 62 646 |
| Trading | 10 774 | 10 743 | 6 501 | 11 888 | 13 165 | 7 237 | 7 083 | 2 679 | 39 906 | 30 164 |
| Register of certificates of origin | 2 996 | 2 735 | 1 977 | 7 897 | 4 038 | 4 428 | 6 017 | 2 066 | 15 605 | 16 549 |
| Clearing | 5 078 | 5 232 | 3 829 | 6 345 | 6 707 | 3 124 | 4 712 | 1 390 | 20 484 | 15 933 |
| Other revenue | 472 | 783 | 549 | 709 | 221 | 1 012 | 957 | 845 | 2 513 | 3 035 |
| Operating expenses | 45 108 | 40 241 | 44 030 | 36 845 | 39 717 | 34 438 | 39 326 | 35 009 | 166 224 | 148 490 |
| Depreciation and amortisation | 7 203 | 6 921 | 7 922 | 3 676 | 4 203 | 4 096 | 4 292 | 3 973 | 25 723 | 16 564 |
| Salaries | 11 701 | 11 596 | 14 450 | 14 168 | 13 304 | 11 985 | 12 126 | 10 399 | 51 915 | 47 814 |
| Other employee costs | 3 003 | 2 631 | 3 469 | 3 019 | 3 018 | 2 918 | 2 971 | 3 181 | 12 121 | 12 089 |
| Rent and maintenance fees | 2 677 | 2 661 | 2 690 | 2 544 | 3 022 | 2 129 | 2 492 | 2 262 | 10 572 | 9 905 |
| Fees and charges | 5 612 | 5 441 | 4 879 | 4 838 | 3 963 | 4 816 | 5 470 | 5 203 | 20 770 | 19 452 |
| :incl.: PFSA fees (WSE) | 4 956 | 4 578 | 4 358 | 4 356 | 2 585 | 4 469 | 4 885 | 4 885 | 18 249 | 16 823 |
| External service charges | 12 721 | 9 191 | 7 786 | 6 544 | 9 327 | 6 664 | 9 633 | 8 094 | 36 242 | 33 718 |
| Other operating expenses | 2 191 | 1 800 | 2 834 | 2 056 | 2 881 | 1 830 | 2 342 | 1 897 | 8 881 | 8 950 |
| Other income | 1 499 | 227 | 232 | 1 266 | 1 959 | 209 | 1 589 | 6 748 | 3 224 | 10 505 |
| Other expenses | 824 | 491 | 82 | 729 | 9 458 | 99 | 999 | 27 | 2 126 | 10 583 |
| Operating profit | 26 414 | 28 495 | 20 677 | 43 051 | 26 898 | 31 335 | 31 374 | 35 650 | 118 636 | 125 257 |
| Financial income | 1 702 | 2 200 | 2 790 | 4 225 | 3 180 | 3 221 | 3 788 | 3 885 | 10 917 | 14 074 |
| Financial expenses | 2 790 | 2 561 | 3 520 | 3 344 | 4 483 | 4 463 | 4 099 | 4 755 | 12 215 | 17 800 |
| Share of profit of associates | 1 614 | 3 385 | 2 846 | 4 649 | 915 | 2 013 | 1 738 | 4 577 | 12 494 | 9 243 |
| Profit before income tax | 26 940 | 31 519 | 22 792 | 48 581 | 26 510 | 32 106 | 32 801 | 39 357 | 129 832 | 130 774 |
| Income tax expense | (1 605) | 5 566 | 5 808 | 6 520 | 6 434 | 6 193 | 6 075 | 5 842 | 16 289 | 24 544 |
| Profit for the period | 28 545 | 25 953 | 16 984 | 42 061 | 20 076 | 25 913 | 26 726 | 33 515 | 113 543 | 106 230 |
Consolidated statement of financial position of WSE Group at the end of each quarter in 2012 and 2013
| PLN'000 | 2013 | 2012 | ||||||
|---|---|---|---|---|---|---|---|---|
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
| Non-current assets | 576 421 | 574 749 | 568 880 | 579 151 | 512 004 | 518 215 | 516 251 | 513 308 |
| Property, plant and equipment | 124 042 | 120 622 | 128 000 | 131 182 | 133 115 | 133 864 | 134 649 | 129 332 |
| Intangible assets | 269 155 | 272 388 | 268 372 | 271 026 | 209 545 | 214 487 | 213 593 | 209 888 |
| Investment in associates | 158 540 | 156 694 | 154 050 | 155 071 | 151 213 | 149 456 | 147 045 | 152 537 |
| Deferred tax assets | - | 645 | 3 897 | 7 096 | 3 155 | 4 306 | 4 847 | 5 177 |
| Available-for-sale financial assets | 20 955 | 20 982 | 11 010 | 11 141 | 11 183 | 11 002 | 10 910 | 11 004 |
| Prepayments | 3 729 | 3 418 | 3 551 | 3 635 | 3 793 | 5 100 | 5 207 | 5 370 |
| Current assets | 482 707 | 445 915 | 506 026 | 473 336 | 447 020 | 415 847 | 499 153 | 477 713 |
| Inventories | 166 | 180 | 176 | 266 | 253 | 325 | 278 | 266 |
| Corporate income tax receivable | 10 797 | 5 166 | 3 970 | 2 511 | 4 837 | 1 578 | 111 | - |
| Trade and other receivables | 34 792 | 44 754 | 40 555 | 50 194 | 62 929 | 64 073 | 95 618 | 79 434 |
| Available-for-sale financial assets | 118 | 586 | 428 | 272 | 118 | 586 | 58 254 | 57 389 |
| Other current financial assets | 3 | - | - | - | - | - | - | - |
| Cash and cash equivalents | 436 831 | 395 229 | 460 897 | 420 093 | 378 883 | 349 285 | 344 892 | 340 624 |
| incl.: assets of the clearing guarantee system | 125 326 | 124 581 | 153 723 | 144 120 | 121 489 | 100 862 | 104 590 | 92 647 |
| Total assets | 1 059 128 | 1 020 664 | 1 074 906 | 1 052 486 | 959 024 | 934 462 | 1 015 404 | 991 021 |
| Equity | 638 105 | 609 024 | 584 102 | 600 756 | 555 890 | 537 534 | 525 409 | 560 793 |
| Share capital | 63 865 | 63 865 | 63 865 | 63 865 | 63 865 | 63 865 | 63 865 | 63 865 |
| Other reserves | 1 278 | 1 129 | 1 920 | 1 806 | (1 000) | (2 639) | (1 459) | (2 681) |
| Retained earnings | 571 842 | 542 825 | 517 159 | 533 614 | 491 647 | 472 010 | 455 429 | 492 202 |
| Non-controlling interests | 1 120 | 1 205 | 1 158 | 1 471 | 1 377 | 4 298 | 7 574 | 7 407 |
| Non-current liabilities | 249 578 | 248 234 | 247 950 | 247 889 | 247 842 | 250 313 | 250 213 | 263 322 |
| Employee benefits payable | 4 456 | 4 283 | 4 284 | 4 314 | 4 305 | 4 984 | 4 765 | 4 540 |
| Finance lease liabilities | 439 | 449 | 279 | 289 | 381 | 329 | 448 | 424 |
| Provisions for other liabilities and charges | - | - | - | 15 | - | - | - | 1 010 |
| Liabilities under bond issue | 243 617 | 243 502 | 243 387 | 243 272 | 243 157 | 245 000 | 245 000 | 245 000 |
| Loans and borrowings | - | - | - | - | - | - | - | 12 348 |
| Deferred tax liability | 1 066 | - | - | - | - | - | - | - |
| Current liabilities | 171 445 | 163 406 | 242 855 | 203 841 | 155 292 | 146 215 | 239 782 | 166 906 |
| Trade payables | 12 738 | 5 402 | 3 518 | 8 924 | 4 284 | 6 108 | 11 533 | 16 829 |
| Finance lease liabilities | 365 | 460 | 364 | 337 | 336 | 356 | 229 | 283 |
| Corporate income tax payable | 657 | 969 | 298 | 1 705 | 2 549 | 1 487 | 1 751 | 7 169 |
| Liabilities under bond issue | - | 2 377 | 6 419 | 3 214 | - | 3 917 | 7 917 | 4 088 |
| Loans and borrowings | - | - | - | - | 13 | 1 760 | 19 332 | - |
| Dividends and other liabilities | 144 035 | 140 003 | 218 905 | 177 709 | 134 185 | 121 260 | 190 065 | 132 431 |
| incl. liabilities of the clearing guarantee system | 125 326 | 124 581 | 153 723 | 144 120 | 121 489 | 100 862 | 104 590 | 92 647 |
| Employee benefits payable | 11 511 | 12 844 | 11 997 | 10 601 | 12 574 | 10 317 | 7 794 | 6 106 |
| Provisions for other liabilities and charges | 2 139 | 1 351 | 1 354 | 1 351 | 1 351 | 1 010 | 1 161 | - |
| Total equity and liabilities | 1 059 128 | 1 020 664 | 1 074 906 | 1 052 486 | 959 024 | 934 062 | 1 015 404 | 991 021 |