OREANDA-NEWS. Moscow Exchange (MOEX) today announces its financial results under International Financial Reporting Standards (IFRS) for the year ended 31 December 2014. Higher volumes on the FX, Equities and Money Markets, as well as increased interest income and fees from Depository and Settlement Services resulted in strong growth in revenue and net income.

KEY FINANCIAL HIGHLIGHTS FOR 2014

  • Operating income increased 23.5% YoY to RUB 30.39 bln.
  • EBITDA increased 31.9% YoY to RUB 21.62 bln; the EBITDA margin was 71.1% vs. 66.6% in 2013.
  • Operating expenses grew by 5.2% YoY to RUB 10.37 bln.
  • Net income increased 38.1% YoY to RUB 15.99 bln; basic earnings per share increased to RUB 7.21 from RUB 5.23.
  • Proposed dividend of RUB 3.87 per share, representing 55% of 2014 net income.

KEY CORPORATE HIGHLIGHTS FOR 2014

  • MOEX's free float increased to more than 50%, one of the highest on the Russian market following The Central Bank of Russia's sale of half of its stake in MOEX in July with a RUB 16 bln (USD 469 mln) SPO transaction.
  • MOEX substantially expanded its product offering: corporate Eurobond listings, repo instruments for corporate Eurobonds, two new currency pairs (GBP/RUB and HKD/RUB), futures on Yandex and MOEX, volatility index and Eurobonds futures, derivatives and FX positions, currency risk netting, and intraday clearing on the Equities and Bonds Market.
  • Russian equities and corporate bonds became fully available for settlement via Euroclear and Clearstream direct links to Russia's CSD, the National Settlement Depository (NSD).

Mr. Alexander Afanasiev, Chief Executive Officer of Moscow Exchange, commented:

"2014 was another very successful year for Moscow Exchange despite the challenging environment. The main factors that drove the growth in volumes were the major market infrastructure reforms we implemented over the past several years, our strong relationships with clients, as well as the proven safety of Moscow Exchange's systems and risk management, which attracted more volumes in a volatile market. During the year we launched a range of new products and services in response to the requirements of our customers.

"We are pleased to report very strong financial results, and that we are recommending to the AGM a record dividend payout of 55% of net income, which exceeds the level that Moscow Exchange has committed to under its dividend policy.

"We are cautiously optimistic about 2015 as we see year-to-date volume growth across most of our markets. Our focus in the year ahead will be on continuing to grow revenue from our traditional business lines, diversifying the product offering, developing clearing and post-trading functions and closely monitoring costs.

"We will also continue to lead the way among Russian companies in corporate governance. We are compliant with Russia's new Corporate Governance Code, reflecting best international practice, and we remain committed to transparency and proactive engagement with investors and other stakeholders. We also have a high-calibre and rigorously engaged Board led by a strong non-executive Chairman."

Mr. Evgeny Fetisov, Chief Financial Officer of the Moscow Exchange, said:

"I am pleased to report that in 2014 we achieved outstanding financial results and successfully completed several important initiatives. The successful SPO of our shares helped to further diversify the company's high quality investor base and substantially increased the free float.

"Earnings per share increased 37.9% YoY to RUB 7.21 supported by strict cost control and solid operating income performance. Strong double-digit growth in fees and commissions was recorded on the FX Market (+41.3% YoY), Money Market (+27.8% YoY), Equities Market (+25.8% YoY), as well as Depository and Settlement Services (+37.3% YoY). We also maintained good cost discipline: operating expenses increased just 5.2% YoY, approximately half the inflation rate.

"We optimised the structure of MOEX Group through the sale of non-core assets, finalized mergers of several entities within the Group and increased our stake in NAMEX, the commodities exchange focused on grain trading, to a controlling interest."

About Moscow Exchange

Moscow Exchange Group manages the sole multifunctional exchange platform in Russia for equities, bonds, derivative instruments, currencies, money market instruments and commodities. The Group includes the central depository (National Settlement Depository), and a clearing centre (National Clearing Centre), performing the functions of central counterparty on the markets, which allows Moscow Exchange to render the full spectrum of trading and post-trading services to its clients.

Moscow Exchange ranks among the world's top 25 exchanges by total volume of equities traded, and also among the 10 largest exchange platforms by bonds and derivatives trading. As of 1 March 2015 securities of 726 issuers are admitted to trading on the securities market of Moscow Exchange, including securities of the largest Russian companies by market capitalization.

Moscow Exchange was formed in December 2011 as a result of a merger between Russia's two main exchange groups - MICEX Group, the oldest domestic exchange and operator of the leading securities, foreign exchange and money market platform in Russia; and RTS Group, at the time the operator of Russia's leading derivatives market. This combination created a vertically integrated public trading market across most major asset classes, which was reorganized into an open joint stock company (OJSC) and was named Moscow Exchange. Moscow Exchange held the initial public offering of its shares on 15 February 2013 (ticker MOEX).