Nigerian Exchange Group has said the last general elections and the Naira redesign policy of the Central Bank of Nigeria impacted its top-line revenue negatively.
It said this resulted in a 20.5% decline to ₦1.33 billion in the first quarter of 2023, from Q1, 2022 revenue of ₦1.67 billion.
This was disclosed in its unaudited results for the first quarter ended March 31, 2023.
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The group said it recorded “a 14.2% year-on-year (YoY) decline in gross earnings to ₦1.56 billion (Q1 2022: ₦1.82 billion), driven by a 20.5% dip in revenue, following a period of high economic and socio-political uncertainty.
Gains Recorded
On the other hand, other income grew by 57.7%, offsetting the drop in revenue.
“The group’s top-line revenue fell by 20.5%; driven primarily by Naira scarcity, the recently concluded general election and the CBN’s Naira redesign policy.”
According to the NGX, transaction fees, which accounted for 51.5% of revenue, dropped by 30.6% YoY to ₦685.9 million(Q1 2022: ₦988.1 million) due to reduced business activities.
Treasury investment income (31.1% of revenue) dropped to ₦414.7 million in Q1 2023 (Q1 2022: ₦520.5 million), driven by lower yields on the Group’s treasury investment portfolio due to uncertainties during the general election period.
However, the Group recorded a 44.6% listing fees growth to ₦179.2 million in Q1, 2023 from ₦123.9 million in Q1, 2022.
Growth in listing fees was driven by increased demand for listing services by domestic firms.
Also, rental income (2.7% of revenue) earned from NGX Real Estate, lease of office floor spaces, recorded a 32.2% increase to ₦36.0 million in Q1, 2023 from ₦27.2 million recorded in Q1, 2022.
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Other fees representing rent of trading floor, annual charges from brokers, dealing licenses, and membership fell by 1.2% to ₦16.5 million in Q1, 2023 (Q1, 2022: ₦16.9 million).
NGX Group’s profit before income tax expense increased by 21.5% YoY to ₦412.2 million in Q1 2023 from ₦339.2 million in the corresponding period in 2022 due to an improved share of profit-equity accounted investees and a fall in finance cost.
Profit for the period recorded a 109.0% increase to ₦310.0 million in Q1 2023 from ₦148.3 billion in Q1, 2022, resulting in significant growth in profit after tax margin to 23.3% in Q1, 2023 from 8.9% recorded in Q1 2022.
