NGXGroup earns N412m in Q1 through cost-saving strategy, innovations

For the period ended March 31, 2023, the Nigerian Exchange Group Plc (NGX Group) has achieved a Profit Before income Tax (PBT) of ₦412.2 million against ₦339.2 million recorded in the corresponding period in 2022.

Specifically, the Group’s unaudited result for the first quarter (Q1) showed 21.5 per cent rise in PBT from ₦339.2 million to ₦412.2 million while Profit After Tax (PAT) also rose from ₦148.3 million to ₦310 million, representing an increase of 109 per cent.

The Group attributed the improved performance to the implementation of cost-saving measures that helped to minimise the impact of revenue reduction, while also exploring new and innovative ways to appeal to a broader demographic and capture more market share.

However, NGX Group recorded 14.2 per cent decline in gross earnings to ₦1.6 billion from ₦1.8 billion recorded in the previous year.

According to NGX Group, the decline was driven by 20.5 per cent dip in revenue following a period of high economic and socio political uncertainty. On the other hand, other income grew by 57.7 per cent, offsetting the drop in revenue.

The Group’s top-line revenue fell by 20.5 per cent to ₦1.3 billion from ₦1.7 billion in 2022, driven primarily by reduced business transactions and consumer spending that resulted from the recently concluded general election and the Central Bank of Nigeria’s attempt to phase out Nigeria’s old higher denomination of banknotes.

Further, transaction fees, which accounted for 51.5 per cent of the revenue, also dropped by 30.6 per cent from ₦988.1 million to ₦685.9 million due to reduced business activities.

Its treasury investment income also dropped to ₦414.7 million from ₦520.5 million in 2022, primarily driven by relatively lower yields on the Group’s treasury investment portfolio owing to the unfavorable market conditions and uncertainties during the general election period.

The Group recorded a 44.6 per cent growth in listing fees to ₦179.2 million from ₦123.9 million due to increased demand for listing services by domestic firms.

For NGX Real Estate, rental income (2.7 per cent of revenue) earned from NGX Real Estate, lease of office floor spaces, recorded a 32.2 per cent increase to ₦36 million from ₦27.2 million recorded in Q1, 2022.

Other fees representing rent of trading floor, yearly charges from brokers, dealing licenses, and membership fell by 1.2 per cent to ₦16.5 million, while total expenses fell by 10 per cent to ₦1.7 billion from ₦1.9 billion achieved 2022, primarily driven by reduced personnel expenses and a fall in finance costs.

Group Managing Director/Chief Executive Officer, Oscar N. Onyema, said: “Despite the challenging macroeconomic environment, occasioned by cash and energy scarcity, as well as political tension from the 2023 elections, the Group remained resilient.

“We are pleased to announce 109 per cent increase in net profit, achieved through the implementation of cost-saving measures that minimised the impact of revenue reduction, just as we are exploring new and innovative ways to capture more market share and appeal to a broader demographic.”

Oscar assured stakeholder that the group will continue to invest in innovative marketing strategies to appeal to the changing consumer preferences, as well as explore opportunities to expand product line, portfolio mix, and penetrate new markets.

He also reiterated the Group’s committed to its long-term growth strategy, ability to navigate the current challenging environment as well as creating value for stakeholders.