NGXGroup Makes N412m In The First Quarter Thanks To Cost-Cutting Measures And Innovations

Increased Global Competitiveness
NGX

The Nigerian Exchange Group Plc (NGX Group) reported a Profit Before Income Tax (PBT) of 412.2 million for the quarter that ended on March 31, 2023, compared to a PBT of 339.2 million for the same quarter in 2022.

In particular, the Group’s unaudited result for the first quarter (Q1) showed a 21.5% increase in PBT from 339.2 million to 412.2 million and a 109% increase in Profit After Tax (PAT) from 148.3 million to 310 million.

The Group credited the enhanced performance to the adoption of cost-cutting measures that lessened the effects of revenue decrease while also investigating fresh and creative approaches to appeal to a wider demographic and increase market share.

However, NGX Group saw a 14.2% decline in gross profits from the previous year, falling to 1.6 billion from 1.8 billion.

The decline, according to NGX Group, was caused by a 20.5% drop in income after a period of significant economic and political unpredictability. However, other income increased by 57.7%, making up for the revenue decline.

The Group’s top-line revenue decreased by 20.5% from 1.7 billion to 1.3 billion from 2022 to 2023, primarily due to fewer consumer and business purchases as a result of the recently concluded general election and the Central Bank of Nigeria’s effort to phase out Nigeria’s older, higher denomination banknotes.

Additionally, due to fewer business activities, transaction fees, which made up 51.5% of the total revenue, decreased by 30.6% from 988.1 million to 685.9 million.

Additionally, the Group’s treasury investment income decreased to 414.7 million from 520.5 million in 2022, primarily as a result of relatively lower yields on the portfolio due to unfavorable market conditions and uncertainty surrounding the general election.

Due to an increase in domestic companies’ demand for listing services, the Group saw a jump in listing fees of 44.6%, from 123.9 million to 179.2 million.

For NGX Real Estate, rental income (2.7 percent of revenue) from the lease of office floor spaces increased by 32.2 percent, from 27.2 million in Q1 2022 to 36 million.

Other fees, such as trading floor rent, annual broker fees, dealing license fees, and membership fees, decreased by 1.2% to $16.5 million, and overall expenses decreased by 10% to $1.7 billion from $1.9 billion in 2022, primarily due to lower personnel costs and falling finance costs.

Oscar N. Onyema, group managing director and chief executive officer, said: “Despite the challenging macroeconomic environment, occasioned by cash and energy scarcity, as well as political tension from the 2023 elections, the Group remained resilient.”

“We are pleased to announce 109 per cent increase in net profit, achieved through the implementation of cost-saving measures that minimised the impact of revenue reduction, just as we are exploring new and innovative ways to capture more market share and appeal to a broader demographic.”

In order to cater to the shifting customer preferences, Oscar reassured the shareholder that the group would keep investing in innovative marketing methods. He also said that the firm would look into chances to extend its product line, diversify its portfolio, and enter new markets.

Additionally, he reaffirmed the Group’s dedication to its long-term growth strategy and its capacity to successfully navigate the present difficult environment while also adding value for all stakeholders.

Subscribe to our newsletter for latest news and updates. You can disable anytime.
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments