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Compared to 2023, trading volumes in TASE markets increased significantly in 2024, with the equities' average daily trading volume reaching NIS 2.2 billion - up 10% over the average daily volume in 2023. During 2024, 8 new companies completed an IPO on TASE, with an aggregate value of NIS 8.4 billion, including 5 new issuers, two dual listings and one company that split off a TASE-listed company. Since the beginning of 2025, 5 new companies have completed an IPO on TASE and other companies are in the pipeline with IPOs scheduled in the coming months.

During 2024, the TASE bonds market increased strength as a major source for raising debt both for listed companies and for the Israeli government.  Corporate bond issuances totaled NIS 123.5 billion in 2024, compared to NIS 100 billion in 2023. Additionally, the volume of debt raised through deposit-backed bonds hit a new record, totaling NIS 27 billion, more than double the amount raised in 2023 and over eight times the amount raised in 2022. The strong demand in Israel and abroad for Israeli government bond is a strong sign of confidence in the Israeli economy – particularly as the war was still being fought throughout the year.

The Core Activities in 2024

In 2024, against the backdrop of exceptional events that had significant impact on the local capital market, TASE continued to implement its strategy of building up core activities and furthering the development and growth of the capital market.

TASE, together with the Israel Securities Authority (ISA) and the Bank of Israel, are preparing for the implementation of the move to change TASE's trading week to Mondays-Fridays, already at the beginning of 2026. This change will bring the trading days into line with international markets, increase the Israeli capital market's liquidity and accessibility for foreign investors and strengthen Israel's position on the international financial stage. As part of the preparations for the change in trading days, TASE recently announced that it intends, in conjunction with ISA, to use AI to translate immediate reports into English, in cooperation with Israeli fintech company, TipRanks. Initially, the reports of the companies included in the TA-125 Index will be published on TASE's MAYA English website, allowing foreign investors to receive reports in English in real time.

At the same time, TASE continues its efforts to grow the number of trading firms and members in the Israeli capital market and two new TASE members commenced operations in 2024 – Jump Trading Europe B.V., one of Europe's leading international trading entities that joined as a remote member, and Altshuler Shaham Trade, one of Israel's leading investment houses that has begun acting as a TASE member and as a TASE Clearing House member. In addition, Clearstream Banking S.A., one of the two international clearing houses operating in Europe, began to operate on TASE in September 2024, as a custodial member.

Alongside the growth in the number of new TASE members, the volume of trading by new retail investors trading on TASE increased by a notable 12%. This positive development is also part of the continued cooperation between the financial regulators, that are working together to promote competition and enhancing the local capital market by aligning it with international standards.

Responding to strong demand, in the last quarter of the year, TASE increased the colocation capacity in the main hosting site with an additional 11 cabinets. TASE also continued to develop the communication hubs outside of Israel.  In addition to the first PoP in London, TASE began to provide connectivity services through the second new PoP established in Frankfurt several months ago and has already recruited its first customers for the service.

In the trading sphere, TASE continued to invest resources in developing the indices market. Overall, during 2024, 21 new equity and bond indices were launched, of which 11 are bespoke indices, and TASE entered into exclusivity contracts with three leading index issuers, for exclusive agreements.  Consequently, TASE intends to increase and diversify the products in the coming year as part of its strategic plan to improve and develop more investment products for investors. At the end of December 2024, the total amount of AUM of TASE indices exceeded NIS 100 billion, representing an 18% increase over 2023.

At the beginning of November, TASE launched a block trade facility for large, pre-arranged and protected transactions that ensure real time transparency to the market, in alignment with global standards. In addition, TASE completed at the end of October 2024 the main phase in the reform of the OTC trading system, adapting it for use by foreign investors and aligning it with international standards.

Moreover, further to the Israel Securities Authority's approval last August for non-bank TASE members to trade in crypto currencies for their customers, in January 2025 TASE published a draft for public comments on the basis of which TASE will, for the first time, allow the registration of ETFs on digital assets, such as Bitcoin. This move is part of TASE strategic plan to operate in and develop the field of digital assets.

In the derivatives market, in September 2024 TASE launched futures contracts on three leading indices: TA-35, TA-90 and TA-Banks 5, and also appointed a market maker to ensure liquidity and trade volume in this market and to enable the public to invest at more competitive prices. In addition, following the move that began in June 2024 to reduce the multipliers in the derivatives market on the options in the TA-35, TA-Banks 5, TA-125 and foreign exchange indices, the average daily trading volumes on these options have grown by 25% compared to the same period last year.

In January 2024, as part of the continuing restructuring of TASE, a deal took place for the sale of the banks' Legacy Arrangement shares. Within the framework of this deal, 18.5% of the company's shares were sold, of which the consideration to TASE totaled NIS 242 million. In December 2024, an additional consideration of NIS 10 million was received from a TASE member, that is another shareholder of Legacy Arrangement shares. TASE has now received a total of NIS 317 million from the sale of Legacy Arrangement shares, with only an immaterial balance of such shares remaining. The proceeds received by TASE for the Legacy Arrangement shares have been credited directly to TASE's shareholders equity and are earmarked for developing investments in TASE's technologies infrastructure.

Further to the buyback plans implemented by TASE since 2022, which resulted in the purchase of 10.2 million shares for a consideration of NIS 186 million, on January 9, 2025, a buyback transaction took place with Manikay Fund, an interested party in the company that held 19.2% of TASE's equity at the time. The buyback transaction comprised the purchase of 4.6 million ordinary shares, constituting 4.82% of TASE's issued share capital, at a price of NIS 43.79 per share, for a total consideration of NIS 202.4 million.

In addition, TASE adopted a dividend distribution policy for the years 2024-2026, as part of which TASE will distribute to its shareholders a cash dividend at a rate of 50% of the annual net profit for 2024. In accordance with this policy, TASE's Board of Directors has approved the distribution of a dividend to the shareholders of TASE (for which the record date is March 12, 2025) in a total amount of NIS 51 million, representing NIS 0.53 per ordinary share, that will be paid on March 20, 2025.

In total, over the 14-month period from January 2024 to March 2025, TASE will have made NIS 526 million in distributions to its shareholders, comprising NIS 324 million through dividends, and NIS 202 million through share buyback.

Highlights of the results for the fourth quarter of 2024:

Revenue in the fourth quarter of 2024 totaled NIS 115.4 million, compared to revenue of NIS 101.4 million in the corresponding quarter last year, an increase of 14%. The increase in revenue is due mainly to an increase in revenue from data distribution and connectivity services, as a result of the increased volume of activity and the impact of the updated index-usage fees, this in addition to the increase in revenue from Clearing House services, mainly as a result of the increase in Clearing House services to members following the completion of regulation measures in relation to OTC transactions.

Revenue from trading and clearing commissions totaled NIS 43 million, an increase of 5% compared to the corresponding quarter last year. The increase in the trading volumes, mainly in shares and derivatives, and in the volume of creations/redemptions of mutual fund units increased revenue from trading and clearing commissions by 19%. In opposition, a reduction of six trading days between the quarters and a reduction in the effective commission rate, primarily in shares and mutual funds, deducted 9% and 5% from the increase in revenue, respectively.

Revenue from listing fees and levies increased by 11% and totaled NIS 22.3 million. Revenue from Clearing House services increased by 25%, totaling NIS 26 million in the fourth quarter. Revenue from data distribution and connectivity services totaled NIS 23 million in the fourth quarter of 2024, a 24% increase compared to the corresponding period last year.

Costs in the fourth quarter of 2024 totaled NIS 84.2 million, compared to costs of NIS 76.9 million in the corresponding quarter last year, an increase of 9%. The increase in the costs is due mainly to the increase in employee benefit expenses and marketing expenses.

Net financing income in the fourth quarter of 2024 totaled NIS 2.6 million, compared to net financing income of NIS 3.2 million in the corresponding quarter last year. The decrease in net financing income was due mainly to the increase in the financing expenses with respect to a loan obtained at the end of 2023.

The profit in the fourth quarter of 2024 totaled NIS 25.4 million, compared to NIS 20.7 million in the corresponding quarter last year, a 22% increase. Most of the increase in profit was due to the increase in revenue, less the increase in costs and in tax expenses, as described above.

The Adjusted EBITDA in the fourth quarter of 2024 totaled NIS 46.8 million, compared to NIS 40.1 million in the corresponding quarter last year, a 17% increase. Most of the increase is due to the NIS 6.7 million increase in profit before financing.

The adjusted profit in the fourth quarter of 2024 totaled NIS 26.5 million, compared to NIS 22.7 million in the corresponding quarter last year, an increase of 16%. Most of the increase is due to an increase in revenue from services, less the increase in costs and in tax expenses.

Highlights of the results for full fiscal year 2024

Revenue in 2024 totaled NIS 438 million, compared to NIS 390 million in 2023, an increase of 12%, which is due mainly to an increase in revenue from data distribution and connectivity services, as a result of the increased volume of activity and the impact of the updated index-usage fees.

Revenue from trading and clearing commissions increased to NIS 166.6 million, an increase of 7% year-over-year.

The increase in the trading volumes in 2024, particularly in shares, and in the volume of creations/redemptions of mutual fund units compared to 2023 increased revenue from trading and clearing by 14%. In opposition, a reduction of four trading days between the years and a reduction in the effective commission rate, primarily in shares, derivatives and mutual funds, deducted 2% and 5% from the increase in revenue, respectively.

Otehrwise in revenue from operations: listing fees and levies totaled NIS 88 million, an increase of 9% compared to 2023. Revenue from Clearing House services grew by 14% to NIS 89 million, but the most significant increase was achieved in revenue from data distribution and connectivity services - an increase of 28% year-over-year to a total of NIS 90.8 million.

Costs in 2024 totaled NIS 313.4 million, compared to revenues of NIS 291.5 million in 2023, an 8% increase. The increase in the costs is due mainly to the increase in employee benefit expenses, and in computer and communication expenses.

Net financing income in 2024 amounted to NIS 10 million, compared to net financing income of NIS 11.3 million in 2023. Net financing income in 2024 decreased, mainly due to the increase in the financing expenses with respect to a loan obtained at the end of 2023, this despite the increase in financing income as a result of interest income on the deposits and gains on marketable securities.

Net tax expenses in 2024 totaled NIS 33.1 million, compared to NIS 26.4 million in 2023, an increase of 25%. The increase in the tax expenses was due mainly to the increase in the pre-tax profit.

The profit in 2024 totaled NIS 101.4 million, compared to NIS 83.2 million in 2023, an increase of 22%. Most of the increase in profit was due to the increase in revenue, less the increase in costs and in tax expenses.

The adjusted EBITDA in 2024 totaled NIS 186.3 million, compared to NIS 157.6 million in 2023, an 18% increase. The increase is due mainly to an increase of NIS 26.1 million in profit before financing, net of the change in share-based payment expenses and depreciation expenses of NIS 2.6 million.

The adjusted profit in 2024 totaled NIS 107.2 million, compared to NIS 89.3 million in 2023, an increase of 20%. Most of the increase is due to an increase in revenue from services, less the increase in costs and in tax expenses, and to the adustment of the decrease in costs with respect to share-based payments.

Click here for the link to the full financial statements for the fourth quarter of 2024 and the full year 2024>

Click here for the link to the financial presentation of the fourth quarter of 2024 and the full year 2024>

This notification does not supersede the stated in the periodic financial statements of the Company for the fourth quarter of 2024 and the full year 2024, which contain the full and accurate information.

Seasonality

As a rule, the Company's operations are not characterized by seasonality. Nevertheless, the revenue of the Company from trading and clearing is affected, inter alia, by the number of trading and clearing days. Presented below is information on the quarterly breakdown of trading days:

Contact:
Orna Goren
Head of Communication and Public Relations Unit
Tel: +972 76 8160405
tase.ir@tase.co.il

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SOURCE The Tel Aviv Stock Exchange Ltd.