Nigerian Exchange Group (NGX) Records 25% Surge in Other Income Despite Marginal Revenue Decline in H1 2023
Despite a marginal decline in revenue during the first half of 2023, the Nigerian Exchange Group (NGX) experienced a 25% surge in other income, totaling N490.25 million. This increase was mainly driven by market data income, other operating income, technology income, and net gains on disposal of property and equipment. NGX’s total assets dropped to N54.94 billion in June 2023, while total liabilities increased. The company’s total equity, however, saw an uptick. Net cash flow from operating activities turned negative, and net income for NGX in the period fell by 46%.
Key Points:
- NGX’s other income increased from N392.48 million in H1 2022 to N490.25 million in H1 2023, driven by market data income, other operating income, technology income, and net gain on disposal of property and equipment.
- Revenue dropped by 16% to N3.2 billion in H1 2023 compared to N3.82 billion in H1 2022.
- Profit for the year decreased to N444.08 million in H1 2023 from N820.17 million in the same period of 2022.
- Personnel expenses rose to N1.41 billion in H1 2023 from N1.35 billion in H1 2022.
- Total operating expenses grew to N2.61 billion in H1 2023 from N2.6 billion in H1 2022.
- NGX’s total assets dropped to N54.94 billion in June 2023 from N57.06 billion in December 2022, while total liabilities increased to N17.76 billion from N20.26 billion.
- NGX’s total equity increased to N37.18 billion in June 2023 from N36.81 billion in December 2022.
- Net cash from operating activities turned negative, shifting from a positive flow of N2.16 billion in December 2022 to a negative flow of N4.19 billion in June 2023.
Analysis: The Nigerian Exchange Group (NGX) saw a surge in other income despite a marginal decline in revenue for the first half of 2023. This increase was attributed to various sources, including market data income and technology income. While revenue experienced a dip, NGX’s financials exhibit both positive and negative trends in different areas, reflecting the complex economic environment. The company’s strategic investments, such as increasing its equity stake in CSCS, contributed to its financial performance. However, it’s essential to note the decrease in net income, which may require further examination to understand the underlying factors.
