Summary of annual and quarterly results

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 2013201220132012
Q4Q3Q2Q1Q4Q3Q2Q1
Sales revenue70 84769 00064 55779 35874 11465 66370 11063 938283 762273 825
Financial market51 52749 50751 70152 51949 98349 86251 34156 958205 254208 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 market18 84818 71012 30726 13023 91014 78917 8126 13575 99562 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 revenue4727835497092211 0129578452 5133 035
Operating expenses45 10840 24144 03036 84539 71734 43839 32635 009166 224148 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 profit26 41428 49520 67743 05126 89831 33531 37435 650118 636125 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 tax26 94031 51922 79248 58126 51032 10632 80139 357129 832130 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 period28 54525 95316 98442 06120 07625 91326 72633 515113 543106 230

Consolidated statement of financial position of WSE Group at the end of each quarter in 2012 and 2013

PLN'000 20132012
Q4Q3Q2Q1Q4Q3Q2Q1
Non-current assets576 421574 749568 880579 151512 004518 215516 251513 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 assets482 707445 915506 026473 336447 020415 847499 153477 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 assets1 059 1281 020 6641 074 9061 052 486959 024934 4621 015 404991 021
Equity638 105609 024584 102600 756555 890537 534525 409560 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 liabilities249 578248 234247 950247 889247 842250 313250 213263 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 liabilities171 445163 406242 855203 841155 292146 215239 782166 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 liabilities1 059 1281 020 6641 074 9061 052 486959 024934 0621 015 404991 021