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By Chinwendu Obienyi
Due to increased demand for listing services by domestic firms, listing fees on the floor of the Nigerian Exchange Limited (NGX) grew to N179.2 billion for the first quarter (Q1) of 2023.
This represents a 44.6 per cent growth from N123.9 million recorded in the Q1 2022.
According to the exchange’s unaudited results for the period ended March 31, 2023, its profit before income tax expense increased by 21.5 per cent year-on-year (y/y) to N412.2 million in Q1 2023 from N339.2 million in the corresponding period in 2022.
The board noted that this was due to an improved share of profit-equity accounted investees and a fall in finance cost.
However, the group recorded a 14.2 per cent year-on-year (YoY) decline in gross earnings to N1.6 billion (Q1 2022: N1.8 billion), driven by a 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 N1.3 billion (Q1 2022: N1.7 billion), driven primarily by reduced business transactions and consumer spending that resulted from the recently concluded general election and the CBN’s attempt to phase out Nigeria’s old higher denomination of banknotes.
Furthermore, transaction fees, which accounted for 51.5 per cent of revenue, dropped by 30.6 per cent y/y to N685.9 million (Q1 2022: N988.1 million) due to reduced business activities. Treasury investment income (31.1 per cent of revenue) also dropped to N414.7 million in Q1 2023 (Q1 2022: N520.5 million), primarily driven by relatively lower yields on the group’s treasury investment portfolio owing to the unfavourable market conditions and uncertainties during the general election period.
Commenting on the results, the Group Managing Director, NGX Group Plc, Oscar Onyema, said that despite the challenging macroeconomic environment during the quarter amid cash and energy scarcity, political tension from the 2023 elections, the group remained resilient.
He 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 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,” he said.
