JSE Says Full-Year Profit Declines on Lower Trading Revenue
JSE Ltd. (JSE), which operates the Johannesburg Stock Exchange, said full-year profit fell 12 percent on lower trading revenue even as the group moved its trading platform back to South Africa from London.
Net income declined to 302 million rand ($33 million) for the 12 months through December, compared with 342 million rand a year earlier, the company said in a statement today. Diluted earnings per share excluding one-time items fell 15.9 percent to 4.73 rand, beating the 4.30 rand median estimate of three analysts surveyed by Bloomberg.
“In common with most other cash equity exchanges around the world, our equity market trade execution revenues declined,” the company said today in a statement.
The exchange returned its trading platform to Johannesburg from London last year to allow faster trades and generate higher revenue, Chief Executive Officer Nicky Newton-King said in March 2012. The number of transactions on the exchange was little changed at 26.9 million in 2012, compared with 26.5 million the year before, the company said.
JSE shares dropped as much as 0.7 percent and were 0.1 percent lower at 76.40 rand by 3:10 p.m. in Johannesburg.
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