The Nigerian Exchange Group (NGX), is struggling to grow its core operations as the exchange posted a loss of N109.54 million for the first quarter (Q1) of 2023 before the impact of its share of profit in equity accounted investees (largely CSCS), added to the bottom-line.
For the sake of valuing the company investors would be more interested in how well its core listings, and trading transaction fees are doing, rather than dividends received from companies the NGX is invested in.
Transaction fees the largest share of core revenues for the NGX in Q1, were down by 30.5% to N685.8 million, from N988 million in Q1, 2022.
Personnel expense while flat in Q1, still represented a huge outlay of N628.9 million, equivalent to 47.2% of core revenues of N1.332 billion.
NGX now owns 44.18% of CSCS after increasing its equity stake in the securities clearing firm in 2022.
CSCS is Nigeria’s Central Securities Depository (CSD) licensed to carry on the depository, clearing and settlement of all transactions in the Nigerian Capital Market.