NGX Group’s Gross Earnings Dip By 14.2% In Q1 2023

The Nigerian Exchange Group Plc (NGX Group) has reported N1.6 billion gross earnings for the first quarter (Q1) 2023, representing a 14.2 per cent year-on-year (Y-o-Y) decline from N1.8 billion it posted in Q1 2022.

The Group, in a statement issued on audited financial performance in the quarter under review, indicated that the decline in gross earnings was driven by a 20.5 per cent dip in revenue, following a period of high economic and socio-political uncertainty.

It explained that the top-line revenue also fell to N1.3 billion, indicating a decrease by 20.5 per cent from the N1.7 billion it recorded in Q1 2022 due primarily to decline in business transactions and consumer spending that resulted from the 2023 general elections and the CBN’s Naira redesign policy.

According to the NGX, the transaction fees, which accounted for 51.5 per cent of revenue during the quarter in review also dropped by 30.6 per cent Y-o-Y to N685.9 million compared to the N988.1 million recorded in the corresponding quarter of last year due to lull in business activities.

The group further reported that treasury investment income, which accounted for 31.1 per cent of revenue, also dropped to N414.7 million in Q1 2023 from N520.5 million recorded in Q1 2022, due to lower yields on the Group’s treasury investment portfolio owing to the unfavourable market conditions and uncertainties during the general election period.

A further analysis of the key indices in the financial result showed that the Group recorded a 44.6 per cent listing fees growth to N179.2 million in Q1 2023 from N123.9 million in Q1 2022 while its Rental income, which accounted for 2.7 per cent of revenue, earned from NGX Real Estate, lease of office floor spaces, recorded a 32.2 per cent increase to N36.0 million in Q1 2023 from N27.2 million recorded in Q1 2022.

Other fees representing rent of the trading floor, annual charges from brokers, dealing licenses, and membership fell by 1.2 per cent to N16.5 million in Q1 2023 from N16.9 million recorded in Q1 2022 just as its Other income, representing 14.9 per cent of gross earnings grew by 57.7 per cent to N233.4 million in the first quarter this year from the N148.0 million generated in Q1 2022.

Commenting on the Group’s financial performance in the quarter under review, the NGX Group Managing Director/Chief Executive Officer, Mr. Oscar Onyema, said: “We are pleased to announce a 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.

“The Group will continue investing in innovative marketing strategies to appeal to the changing consumer preferences, as well as explore opportunities to expand the product line, portfolio mix, and penetrate new markets. We stay committed to our long-term growth strategy and are confident in our ability to navigate the current challenging environment and create value for our stakeholders,” Onyema added.