EBITDA     EBIT       Net profit 
164.1 PLN mn 135.4 PLN mn 112.3 PLN mn

The WSE Group’s EBITDA[1] stood at PLN 164.1 million in 2014, an increase of 13.7% (PLN 19.8 million) compared to PLN 144.4 million in 2013.

The WSE Group generated an operating profit of PLN 135.4 million in 2014, an increase of 14.1% (PLN 16.7 million) compared to 2013. The increase in operating profit of 2014 was driven mainly by an increase of revenue from the commodity market by 50.6% combined with an increase of operating expenses by 9.3%. The WSE Group’s net profit was PLN 112.3 million in 2014, compared to PLN 113.5 million in 2013. The decrease of 1.1% year on year was driven mainly by an increase of revenues by PLN 33.8 million, an increase of operating expenses by PLN 15.4 million, a decrease in the share of profit of associates by PLN 8.7 million, and an increase of income tax by PLN 10.5 million.

The WSE’s EBITDA stood at PLN 83.1 million in 2014, a decrease of 8.7% (PLN 7.9 million) compared to PLN 91.1 million in 2013.

WSE generated a separate operating profit of PLN 59.0 million in 2014 compared to PLN 69.1 million in 2013. The decrease in the operating profit was driven by a decrease of operating income (by 2.2%) and higher operating expenses (by 4.3%), including fees and charges, depreciation and amortisation, salaries, and external service charges. Fees and charges increased due to higher fees paid to PFSA. Depreciation and amortisation increased due to the implementation of WSE’s new trading system (UTP): the additional depreciation and amortisation charges were incurred in nine months of 2013 and twelve months of 2014. Salaries increased due to the cost of reorganisation severance pay, provisions for retirement benefits, as well as severance pay due to changes on the Management Board. External service charges increased due to higher costs of advisory and promotion.

The net profit generated by WSE was PLN 52.9 million in 2014 compared to PLN 101.4 million in 2013. The net profit decreased owing to lower financial income from dividends received at PLN 14.8 million in 2014 compared to PLN 43.3 million in 2013. In addition, impairment losses of the subsidiaries WSEInfoEngine S.A. and IRK S.A. in the total amount of PLN 7.7 million were recognised in financial expenses. Income tax in 2014 was PLN 3.7 million higher than in 2013 when the Company recognised a tax relief for investment in new technologies including among others the UTP project. As a result, the income tax was reduced by PLN 7.0 million in 2013.

The PolPX Group generated an operating profit of PLN 78.4 million and a net profit of PLN 66.2 million in 2014, as compared to PLN 48.0 million and PLN 41.8 million, respectively, in 2013.

BondSpot generated an operating profit of PLN 3.6 million and a net profit of PLN 3.3 million in 2014, as compared to PLN 3.7 million and PLN 3.3 million, respectively, in 2013.

Detailed information on changes in revenues and expenses is presented in the sections below.

[1] WSE Group operating profit before depreciation and amortisation (not including share of profit/loss of associates).

Consolidated profit and loss account of WSE Group in 2013 and 2014

PLN'00020142013201420132012
Q4Q3Q2Q1Q4Q3Q2Q1
Sales revenue 83,930 77,869 69,255 86,507 70,847 69,000 64,557 79,358 317,561 283,762 273,825
Financial market 46,472 49,303 48,235 55,952 51,527 49,507 51,701 52,519 199,962 205,254 208,144
Trading 31,124 34,349 32,547 39,775 36,441 35,732 37,543 38,182 137,795 147,899 150,112
Listing 5,816 5,684 6,124 6,336 5,716 5,248 5,588 5,737 23,960 22,289 21,540
Information services 9,532 9,270 9,564 9,841 9,370 8,527 8,570 8,599 38,207 35,066 36,493
Commodity market 35,741 28,310 20,336 30,066 18,848 18,710 12,307 26,130 114,453 75,995 62,646
Trading 18,657 15,136 10,188 16,140 10,774 10,743 6,501 11,888 60,121 39,906 30,164
Register of certificates of origin 5,897 4,706 4,776 7,094 2,996 2,735 1,977 7,897 22,473 15,605 16,549
Clearing 11,187 8,468 5,372 6,832 5,078 5,232 3,829 6,345 31,859 20,484 15,933
Other revenue 1,717 256 684 489 472 783 549 709 3,146 2,513 3,035
Operating expenses 51,331 41,923 44,409 43,937 45,108 40,241 44,030 36,845 181,600 166,224 148,490
Depreciation and amortisation 7,524 6,916 7,146 7,183 7,203 6,921 7,922 3,676 28,769 25,723 16,564
Salaries 16,616 13,284 12,936 13,754 11,701 11,596 14,450 14,168 56,590 51,915 47,814
Other employee costs 3,473 2,584 3,347 3,549 3,003 2,631 3,469 3,019 12,953 12,121 12,089
Rent and maintenance fees 2,060 3,041 2,629 2,542 2,677 2,661 2,690 2,544 10,272 10,572 9,905
Fees and charges 4,863 5,910 5,871 5,743 5,612 5,441 4,879 4,838 22,387 20,770 19,452
incl,: PFSA fees (WSE) 5,357 5,278 5,210 5,210 4,956 4,578 4,358 4,356 21,054 18,249 16,823
External service charges 13,066 8,733 10,460 9,708 12,721 9,191 7,786 6,544 41,967 36,242 33,718
Other operating expenses 3,729 1,456 2,019 1,458 2,191 1,800 2,834 2,056 8,662 8,881 8,950
Other income 367 191 477 221 1,499 227 232 1,266 1,256 3,224 10,505
Other expenses (177) 85 1,048 905 824 491 82 729 1,861 2,126 10,583
Operating profit 33,143 36,052 24,275 41,886 26,414 28,495 20,677 43,051 135,356 118,636 125,257
Financial income 2,174 2,657 2,972 2,558 1,702 2,200 2,790 4,225 10,360 10,917 14,074
Financial expenses 2,723 2,528 2,584 2,522 2,790 2,561 3,520 3,344 10,356 12,215 17,800
Share of profit of associates (2,169) 1,087 861 3,966 1,614 3,385 2,846 4,649 3,745 12,494 9,243
Profit before income tax 30,425 37,267 25,524 45,888 26,940 31,519 22,792 48,581 139,105 129,832 130,774
Income tax expense 6,126 7,302 5,119 8,272 (1,605) 5,566 5,808 6,520 26,819 16,289 24,544
Profit for the period 24,300 29,965 20,405 37,616 28,545 25,953 16,984 42,061 112,286 113,543 106,230

Source: Consolidated Financial Statements, Company

Consolidated statement of financial position of WSE Group at quarter-end, 2012-2014

PLN'000201420132012
Q4Q3Q2Q1Q4Q3Q2Q1Q4
Non-current assets 572,710 586,336 587,013 590,634 576,421 574,749 568,880 579,151 512,004
Property, plant and equipment 119,762 119,368 118,530 121,045 124,042 120,622 128,000 131,182 133,115
Intangible assets 261,019 261,523 264,294 265,932 269,155 272,388 268,372 271,026 209,545
Investment in associates 188,104 189,894 188,674 187,811 158,540 156,694 154,050 155,071 151,213
Deferred tax assets - 1,343 1,341 1,568 - 645 3,897 7,096 3,155
Available-for-sale financial assets 207 10,676 10,706 10,775 20,955 20,982 11,010 11,141 11,183
Prepayments 3,618 3,532 3,468 3,503 3,729 3,418 3,551 3,635 3,793
Current assets 451,449 406,233 424,816 417,511 357,381 321,334 352,303 329,216 325,531
Inventories 120 127 147 142 166 180 176 266 253
Corporate income tax receivable 8,378 6,853 6,974 6,138 10,797 5,166 3,970 2,511 4,837
Trade and other receivables 42,594 39,103 41,115 52,345 34,792 44,754 40,555 50,194 62,929
Available-for-sale financial assets 10,503 586 428 272 118 586 428 272 118
Assets held for sale 812 - - - - - - - -
Other current assets - 7 - - 3 - - - -
Cash and cash equivalents 389,042 359,557 376,152 358,614 311,505 270,648 307,174 275,973 257,394
Total assets 1,024,159 992,569 1,011,829 1,008,145 933,802 896,083 921,183 908,366 837,535
Equity 700,466 676,019 696,280 675,692 638,105 609,024 584,102 600,756 555,890
Share capital 63,865 63,865 63,865 63,865 63,865 63,865 63,865 63,865 63,865
Other reserves 1,930 1,783 1,643 1,249 1,278 1,129 1,920 1,806 (1,000)
Retained earnings 633,555 609,294 629,756 609,436 571,842 542,825 517,159 533,614 491,647
Non-controlling interests 1,116 1,077 1,016 1,142 1,120 1,205 1,158 1,471 1,377
Non-current liabilities 259,419 255,781 253,239 249,563 249,578 248,234 247,950 247,889 247,842
Employee benefits payable 5,562 4,037 4,447 4,452 4,456 4,283 4,284 4,314 4,305
Finance lease liabilities 205 262 296 284 439 449 279 289 381
Provisions for other liabilities and charges - - - - - - - 15 -
Liabilities under bond issue 244,078 243,963 243,848 243,733 243,617 243,502 243,387 243,272 243,157
Deferred income tax liability 9,574 7,519 4,648 1,094 1,066 - - - -
Current liabilities 64,274 60,769 62,310 82,890 46,119 38,825 89,132 59,721 33,803
Trade payables 10,017 13,747 6,967 3,763 12,738 5,402 3,518 8,924 4,284
Finance lease liabilities 154 224 265 338 365 460 364 337 336
Corporate income tax payable 1,250 1,745 754 1,990 657 969 298 1,705 2,549
Liabilities under bond issue - 2,375 - 2,336 - 2,377 6,419 3,214 -
Dividends and other liabilities 41,321 31,997 42,811 63,331 18,709 15,422 65,182 33,589 12,696
Employee benefits payable 9,911 9,510 10,254 9,240 11,511 12,844 11,997 10,601 12,574
Liabilities directly related to assets held for sale 275 - - - - - - - -
Provisions for other liabilities and charges 1,346 1,171 1,259 1,892 2,139 1,351 1,354 1,351 1,364
Total equity and liabilities 1,024,159 992,569 1,011,829 1,008,145 933,802 896,083 921,183 908,366 837,535

Source: Consolidated Financial Statements, Company