OREANDA-NEWS. Moscow Exchange (MOEX) today announces its financial results for the second quarter (2Q) 2014 according to International Financial Reporting Standards (IFRS). Strong earnings were driven by growth across our highly diversified business, particularly the FX Market, equities and depository and settlement services.

KEY 2Q14 OPERATING AND FINANCIAL HIGHLIGHTS

Net profit increased 5.2% YoY to RUB 3.47 bln; earnings per share (EPS) increased 6.0% YoY to RUB 1.58.

Total operating income rose 7.1% YoY to RUB 6.75 bln.

EBITDA grew 11.8% YoY to RUB 5.08 bln; EBITDA margin was 75.3%, versus 72.1% in 2Q13.

KEY CORPORATE HIGHLIGHTS

Moscow Exchange paid a record dividend to shareholders of RUB 2.38 per share (a payout of 46% of IFRS net profit). Payments were made by August 15.

The company"s AGM reduced the number of Supervisory Board members from 19 to 15, further enhancing the efficiency of the Board. Five members of the new board are independent directors. Former Deputy Prime Minister, Alexey Kudrin, was elected as Chairman of the Supervisory Board.

Moscow Exchange completed reforms to the listing process, simplifying the quotation list structure and also strengthening listing requirements for issuers, including with respect to corporate governance. The new quotation list structure has helped to broaden the range of investment opportunities for Russian pension funds.

Shares of Yandex (MOEX: YNDX), one of Europe's largest internet companies and the leading search provider in Russia, began trading on Moscow Exchange.

Moscow Exchange introduced new trading opportunities by offering interdealer repo and repo with the Central Bank of Russia using Eurobonds on the CBR"s Lombard list.

Moscow Exchange joined the FIX Trading Community as a new Global Premier member. The use of the FIX protocol is essential in order to reach the global trading community across all our asset classes.

Moscow Exchange hosted in Moscow the leaders of the world's futures and options markets and global clearing houses at the 31st World Federation of Exchanges (WFE) - International Options Market Association (IOMA) Derivatives Conference.

The Company signed cooperation agreements with Gift of Life, Vera and ORBI charitable foundations. Moscow Exchange undertook to allocate a significant portion of its charity budget to these three organisations, thereby increasing the efficiency of its allocation of charitable funds, while also reaching a larger audience and enabling the Exchange to engage more of its employees into its charity work.

EVENTS OCURRING AFTER THE END OF 2Q 2014

Moscow Exchange's free-float increased to 55.7%, one of the largest free-floats on the Russian market, as a result of the Central Bank of Russia selling an 11.7% stake in the company.

Alexander Afanasiev, Chief Executive Officer of Moscow Exchange, said:

"We are announcing the best quarterly numbers for Moscow Exchange to date, demonstrating once again that our business model is capable of delivering strong results in any market environment. We are experiencing high trading volumes across our main markets, we have maintained a disciplined focus on cost control, and we benefit from important reforms to the market infrastructure recently introduced.

"We have seen a rapidly changing operating environment and market conditions this year, presenting a test to Moscow Exchange and its ability to provide a seamless service to clients and to continue to develop its business. I am pleased to say that we have successfully passed this test.

"We remain focused on offering market participants new trading and post-trading opportunities. Opening up of the Russian stock market to international central securities depositories is an important milestone in this process.

"The past AGM approved a record high dividend payment, which is yet another example of our commitment to share profits with shareholders. The recent sale by the Central Bank of Russia of an 11.7% stake in Moscow Exchange to the market once again demonstrated the quality and depth of the local market, and the potential for companies to carry out large transactions in local shares. With this transaction, we have reached a free-float of over 55.7%, one of the largest in the Russian market, giving us an even more balanced and diverse shareholder base. Going forward, we remain committed to best-in-class corporate governance and delivering strong returns for shareholders."

Evgeny Fetisov, Chief Financial Officer of Moscow Exchange, added:

"I"m pleased that we have managed to achieve such a strong set of numbers in the second quarter. Infrastructure upgrades to the equity market, which were completed last year, continued to bear fruit, driving fees from equities up 20.7% YoY. At the same time, the FX market and post-trade services remained key growth drivers, with each posting double-digit fee and commission income growth. This allowed us to reach another record for fee and commission income in the second quarter. We maintained our focus on strict cost control, bringing administrative expenses down 4.2% YoY, which contributed to our EBITDA margin of 75.3%, a new record high."