NGX group’s profits plunge by 63% in Q2 2023

Nigerian Exchange Group reported its 2023 second-quarter results showing pre-tax profits fell 63% to N319 million. 

This took the half-year pre-tax profits to N726 million versus N1.223 billion in the same period last year. 

NGX also reported a loss before investee income of N16.86 million in the year’s second quarter due to a drop in total income and an increase in operating expenses. 

Key highlights 2023 02:  

• Total income to N2.125 billion -11.14% YoY 
• Total Operating expenses N1.5 billion +3.81%. YoY 
• Operating profit N625 million -33.98% YoY 
• Finance cost N642 million -1.8% YoY 
• Loss before investee income (N16.86) million -105.5% YoY 

• Share of profit-equity accounted investees N336 million -41.56% YoY. 
• Investment in Associates N27.832 billion -6.33% YoY. 
• Investment in securities N16.503 billion; +1.06% YoY 
• Total Assets N54.94 billion -3.72% YoY 
• Net cash flow from operating activities (N4.193) billion YoY 

Insights

NGX earnings were impacted by a reduction in transaction fees and were a major reason for the decline in pre-tax profits before the Share of profit-equity accounted investee. 

• Share of profit-equity accounted investee contributed N335.5 million to the bottom line helping boost profits. 
• The company earnings were also impacted by higher personnel cost 
• NGX also generated negative operating cash flow during the quarter.