In the third quarter of 2024, the Warsaw Stock Exchange Capital Group achieved high sales revenues of PLN 112.1 million, representing a year-on-year increase of 5.7%. The EBITDA result for the entire Group in the third quarter rose by 7.2% year-on-year to PLN 42.5 million, while the net profit attributable to shareholders of the dominant entity reached PLN 42.0 million, marking a year-on-year increase of 5.7%. For the second quarter in a row, the growth rate of costs is lower than the growth dynamics of revenue, which improves profitability. In the third quarter, the Group’s costs increased by only 3.9% year-on-year.
Key financial highlights include:
- PLN 250.4 billion – a record value of session turnover after Q3 2024 (27.8% YoY)
- PLN 1.32 billion – average daily turnover value for Q3 2024 (27.1% YoY)
- PLN 351.1 million – sales revenue for Q3 2024 (6.7% YoY)
- PLN 121.8 million – EBITDA after Q3 2024, adjusted for non-recurring events (2.8% YoY)
- PLN 114.7 million – net profit after Q3 2024, adjusted for nonrecurring events (3.1% YoY)
## Growing Turnovers and Liquidity
In the third quarter of 2024, the Warsaw Stock Exchange maintained a position in the top tier of European markets. According to data from the Federation of European Securities Exchanges (FESE), the Warsaw Exchange for session turnover in shares increased by 35% YoY, which was one of the best results in Europe. The WSE came in second among the European exchanges in terms of liquidity with a turnover rate (velocity) of 37.2%.
In the third quarter of 2024, the WSE Main Market session turnover reached PLN 79.3 billion, a 29% increase compared with the third quarter of 2023. The average daily turnover value of shares was PLN 1.22 billion, a YoY increase of 27%. Investor activity remained high even in October, with the average daily turnover value of shares on the WSE Main Market amounting to PLN 1.25 billion.
From January to September this year, the session turnover value of shares on the WSE Main Market reached a record level of PLN 250.4 billion. This represents a 27.8% increase compared with the previous year, marking the best first nine months of the year in the history of the Warsaw Exchange.
“The increase in turnover and high liquidity in the third quarter confirm that the Warsaw Stock Exchange is a significant capital market in Europe. Our results are the effect of a good stock market situation and improving cost control. The most important event of the recent weeks was the debut of the Żabka Group – the fourth-largest offering in the history of the WSE, and at the same time, the fourth largest IPO in Europe this year. We hope that this debut will encourage other companies to enter the Warsaw Stock Exchange, and we will see more significant IPOs this year,” states Tomasz Bardziłowski, President of the Warsaw Stock Exchange.
## Record Revenues
After three quarters of 2024, the revenues of the Warsaw Stock Exchange Capital Group reached a record level of PLN 351.1 million, representing a YoY increase of 6.7%. The EBITDA result of the WSE CG for Q3 2024 amounted to PLN 116.0 million, 2.1% lower than in the same period of 2023. The net profit attributable to the shareholders of the dominant entity after three quarters of the current year reached PLN 108.9 million, down by 2.2% YoY. However, the EBITDA adjusted for the significant one-off event increased by 2.8% YoY to PLN 121.8 million, while the net profit attributable to the shareholders of the dominant entity (adjusting for the non-recurring event) grew by 3.1% to PLN 114.7 million.
In the third quarter of 2024 alone, the WSE CG revenues amounted to PLN 112.1 million, a 5.7% increase YoY. Revenues from the financial market increased by 9.3% YoY to PLN 71.8 million, while revenues on the commodity market grew by 1.6% YoY to PLN 36.2 million. The sale of information from the financial and commodity market increased by 13.9% to PLN 16.7 million.
For the second quarter in a row, the Group’s operating costs grew slower than its revenues. In the third quarter of 2024, costs increased by 3.9% YoY to PLN 77.5 million. The slowdown in cost dynamics is the result of strict control over costs of foreign services.
The EBITDA of the WSE CG for the third quarter amounted to PLN 42.5 million, 7.2% higher than the result obtained in the third quarter of the previous year. The net profit attributable to shareholders of the dominant unit in the third quarter increased by 5.7% YoY to PLN 42.0 million.
“We are pleased with the results of the WSE Capital Group in the third quarter. The solid increase in revenues is the effect of good performance on the domestic stock market and rising market data sales, with stable revenues in the commodity segment and maintained cost control. For the second quarter in a row, we have a cost dynamics lower than the revenue growth dynamics, which translates into improved profitability,” emphasizes Marcin Rulnicki, a member of the Warsaw Stock Exchange’s Management Board.
## Product Portfolio Development
The Warsaw Stock Exchange consistently expands its financial instruments offering, seeking to better cater to the diverse needs of investors. In the third quarter of 2024, new structured Tracker certificates based on the European EURO STOXX 50 Net Return and STOXX Europe 600 Oil & Gas Net Return indices were listed on the Warsaw Exchange. Tracker certificates are investment products that follow and strictly mimic the behaviour of the underlying instrument on a 1:1 basis. They are mainly intended for investors with a long-term investment horizon.
From July, the shares of nine new companies from the New York exchanges Nasdaq and NYSE: Alphabet, Amazon, Apple, JPMorgan Chase, Meta Platforms, Microsoft, Netflix, Nvidia, and Visa have been listed on the GlobalConnect market. GlobalConnect currently lists 25 companies, including 10 from the U.S. market. Shares of foreign companies are listed on the WSE in Polish zlotys.
In July, GPW Benchmark began publishing three new stock market indices: WIGind, WIGmed, and WIG.MS-ECM. The WIGind index (WIGindustry) includes companies operating in the industrial sector, excluding energy and mining companies. WIGmed (WIGmedicine) gathers companies in the medical sector, including hospitals, clinics, drug manufacturers, medical equipment and material manufacturers, and biotechnology companies. The WIGind and WIGmed indices, along with the existing WIGtechTR, made up a sub-family of cross-sector indices. The family of macro-sector indices, which already include WIG.MS-BAS, WIG.MS-FIN, and WIG.GAMES5, expanded in July with the new WIG.MS-ECM index. This index includes the five most liquid companies in the e-commerce sector: Allegro, Asbis, Dino, Eurocash, and Pepco.
August 2024 proved to be a record month in the history of ETFs listed on the Warsaw Stock Exchange. The value of turnover reached an all-time high of PLN 167 million. From September, two new ETF funds are available on the WSE: BETA ETF Nasdaq-100 3x lev and BETA ETF Nasdaq-100 2x short. These are financial leverage instruments primarily intended for active investors.
## Update of the WSE WATS Budget
The Board of the WSE decided to update the WSE WATS budget. The planned budget for developing version V1 of WATS, supporting the WSE and BondSpot markets, now stands at PLN 133.9 million. The development by the end of 2025 of version V2, which will facilitate operations on the All2All BondSpot market, and the analysis of version V3 facilitating the derivatives market in the second half of 2025 has been priced at PLN 19 million.
“The updated budget will allow the completion of manufacturing work and the implementation of the system according to a precisely and detailed planned scope of tasks. It also includes the development of the design and manufacturing of a new platform for the All2All BONDSPOT market, whose assumptions are currently being coordinated, and the commencement of the V3 version analysis. Updating the budget at the final stage of the project allows for a very precise determination of the necessary inputs,” adds Sławomir Panasiuk, Vice President of the Warsaw Stock Exchange.
The planned production launch date for the new system is November 10, 2025. The decision was made by the WSE Board in July following the recommendation of the WSE WATS Implementation Committee, which plays a key role in overseeing and coordinating all aspects of the implementation of the new system.
## 15th Anniversary of the Catalyst Market
In September 2024, the Catalyst market that specializes in trading corporate, municipal, and treasury bonds celebrated its 15th anniversary. Since its launch in 2009, Catalyst has become a key platform for Polish companies and local governments to raise capital, offering investors a broad choice of debt instruments.
At present, Catalyst includes 693 series of bonds denominated in Polish zlotys issued by 137 entities and 44 series of bonds in euro issued by 16 entities. The total value of bonds listed on the Catalyst market exceeds PLN 1.3 billion. In September, the KGHM company introduced its debt instruments to the Catalyst market. The C series of bonds worth PLN 1 billion was one of the largest corporate bonds issued introduced on Catalyst in recent years.
## Establishing the Issuers Council
In September, the Warsaw Stock Exchange established the Issuers Council, creating a platform for dialogue between issuers, investors, and regulators. Its aim is to increase market effectiveness and promote long-term strategies for the development of Polish companies through knowledge and experience exchanged with the exchange authorities. The Council’s activities focus on three key areas: improving transparency, promoting the capital market, and developing investor trust. The Council will actively initiate changes that support market development and stability, and its members will become ambassadors for these positive efforts, influencing the future capital market in Poland.
## Promoting Investment Education
The Stock Exchange Challenge co-organized by the WSE and the Investors’ Stock Exchange Gazette “Parkiet” has returned. The VI edition of the competition is a unique chance for anyone wanting to deepen their knowledge about the Warsaw Stock Exchange and test their investment skills. The Stock Exchange Challenge offers a chance to gain practical investment experience, using virtual money for real market prices. The main stage of the competition will last until November 22, with a grand final happening at the WSE on December 4. So far, tens of thousands of people have participated in the past editions of the competition.
Meanwhile, the first-ever summer investment contest “Vacation on the Stock Exchange,” organized in cooperation with Bankier.pl’s editorial team, attracted a record number of participants. The competition was entered by a total of over 6,000 people and nearly 100,000 virtual transactions worth close to PLN 108 million were conducted.
In October, the WSE Foundation opened registration for the 23rd edition of the School Online Stock Market Game, aimed at upper secondary school students and older primary school classes. This educational project aims to familiarize young people with the functioning of capital markets, attract interest in the Stock Exchange and, above all, opportunities in the field of investing and long-term saving. SIGG allows young people to learn about investing in a practical way, being a valuable complement to Business and Management classes. Over 25,000 students and over 1,200 teachers have already signed up for this year’s SIGG. Registration for the 23rd edition of the School Online Stock Exchange Game will run until November 11.
Source: https://managerplus.pl/grupa-gpw-odnotowuje-wzrost-przychodow-i-zyskow-w-3-kwartale-2024-r-90273
