The Group has three revenue-generating segments:

  • financial market,
  • commodity market,
  • other revenues.

Revenues from the financial market include revenues from:

  • trading,
  • listing,
  • information services.

Trading revenue includes fees paid by market participants in respect of:

  • transactions on markets of equities and equity-related instruments,
  • transactions in derivative financial instruments,
  • transactions in debt instruments,
  • transactions in other cash market instruments,
  • other fees paid by market participants.

Revenues from transactions in equities and equity-related instruments are the Group’s main source of trading revenues and its main source of sales revenues in general.

Revenues from transactions in derivative financial instruments are the second biggest source of trading revenues. Transactions in WIG20 index futures contracts account for the majority of revenues from transactions in derivatives.

Revenues from other fees paid by market participants include mainly fees for services providing access to the trading system.

Revenues from transactions in debt instruments are generated by the Catalyst market as well as Treasury BondSpot Poland operated by the WSE’s subsidiary BondSpot S.A.

Revenues from transactions in other cash market instruments include fees for trading in structured products, investment certificates, warrants and ETF units.

Listing revenues include two main segments:

  • one-off fees paid by issuers for introduction and admission of new shares and other instruments to trading on the exchange,
  • periodic (annual) listing fees.

Revenues from information services mainly include fees paid by data vendors for real-time market data as well as historical and statistical data. These fees include fixed annual fees and monthly fees based on the data vendor’s number of subscribers.

Revenues of the Group in the commodity market segment include revenues of WSE from the operation of the poee WSE Energy Market, revenues of PolPX and WCCH, and revenues of WSEInfoEngine S.A. as a trade and technical trade operator. The commodity market segment includes the following sub-segments:

  • trading,
  • operation of the Register of Certificates of Origin of electricity,
  • clearing.

Trading revenue on the commodity market includes:

  • revenue from trading in electricity (spot and forward),
  • revenue from trading in property rights in certificates of origin of electricity,
  • other fees paid by market participants (members).

Revenues from the operation of trade in electricity include revenues from transactions on the poee WSE Energy Market as well as revenues of the company PolPX on the Intra-Day Market, the Day-Ahead Market, the Commodity Forward Instruments Market, and Electricity Auctions. The sub-segment of trade in property rights in certificates of origin of electricity includes revenues of PolPX from such trade. Other fees paid by market participants include flat-rate fees paid by market participants of the poee WSE Energy Market and PolPX, as well as revenues of WSEInfoEngine as a trade and technical trade operator.

In December 2012, the WSE Management Board decided to concentrate trading in electricity on the Polish Power Exchange market and to discontinue organising trading in exchange commodities on the poee WSE Energy Market after the end of Q1 2013.

The sub-segment of operation of the Register of Certificates of Origin of electricity includes revenues of PolPX from that activity. Revenues of the sub-segment “clearing” include revenues of the company WCCH, which clears and settles exchange commodities, manages the resources of the clearing guarantee system and determines the amount of credits and debits of WCCH members resulting from their transactions.

The Group’s other revenues include revenues of the subsidiaries WSEInfoEngine S.A. (media segment) and Instytut Rynku Kapitałowego – WSE Research S.A., as well as revenues of WSE and the PolPX Group, among others, from educational services, office space lease, and sponsorship.

The Group’s sales revenues amounted to PLN 273.8 million in 2012, an increase of 1.9% (PLN 5.0 million) compared to 2011. The year-on-year increase in revenues was driven mainly by an increase in revenues of the Group from the commodity market (by PLN 60.6 million), which was mainly related to the acquisition of the PolPX Group in 2012. Revenues from the commodity market amounted to PLN 62.6 million in 2012 compared to PLN 2.0 million in 2011. Revenues from the financial market decreased by 20.6% (PLN 54.0 million) in 2012 compared to 2011 mainly as a result of a decrease in the value of trading in equities on the Main Market (by 24.3%) and a decrease in the volume of trading in derivatives (by 27.1%).

The Group’s quarterly sales revenues amounted to PLN 74.1 million in Q4 2012, an increase of 12.9% (PLN 8.5 million) compared to Q3 2012 and an increase of 21.7% (PLN 13.2 million) compared to Q4 2011. The increase in sales revenues compared to Q3 2012 was driven mainly by higher revenues from the commodity market segment operated by the PolPX Group, up by 61.7%. Revenues from the commodity market increased by PLN 9.1 million in Q4 2012 compared to Q3 2012 mainly as a result of revenues from clearing and settlement of exchange commodities in the clearing sub-segment operated by WCCH, which more than doubled (an increase of PLN 3.6 million), an increase in revenues from forward transactions in electricity (by PLN 2.5 million), an increase in revenues from trading in property rights in certificates of origin by PLN 2.0 million, and an increase in revenues from other fees paid by commodity market participants by PLN 1.4 million.

Revenues from the financial market segment amounted to PLN 50.0 million in Q4 2012; they were stable compared to Q3 2012 and decreased by PLN 8.8 million (14.9%) compared to Q4 2011. The decrease in revenues from the financial market segment in Q4 2012 compared to Q4 2011 was driven mainly by lower revenues from transactions in equities and equity-related instruments (a decrease of PLN 4.4 million) as well as lower revenues on the financial market from transactions in derivatives (a decrease of PLN 4.0 million).

The consolidated revenues of the WSE Group in Q4 2012 include among others the revenues of the PolPX Group at PLN 22.6 million and the revenues of BondSpot S.A. at PLN 3.5 million.

Consolidated revenues of the WSE Group by segment in 2011-2012 and in selected quarters of 2011-2012
PLN'000, % For the three-month period ended Year ended December 31,
 December
31, 2012
% September
30, 2012
% December
31, 2011
% 2012 % 2011 %
Financial market 49,983 67% 49,862 76% 58,762 96% 208,144 76% 262,154 98%
Trading 35,534 48% 35,837 55% 43,739 72% 150,112 55% 202,199 75%
Shares and other equity instruments 24,590 33% 23,738 36% 29,037 48% 101,166 37% 143,092 53%
Derivative instruments 5,708 8% 6,278 10% 9,669 16% 26,944 10% 40,223 15%
Other fees paid by market participants 1,716 2% 1,654 3% 1,516 2% 6,873 3% 5,134 2%
Fixed-income instruments 3,485 5% 4,132 6% 3,449 6% 14,960 5% 13,451 5%
Other cash instruments 34 0% 35 0% 68 0% 168 0% 300 0%
Listing 5,516 7% 5,193 8% 5,561 9% 21,539 8% 23,386 9%
Annual listing fees 4,095 6% 4,062 6% 4,255 7% 16,520 6% 16,753 6%
Introduction and admission fees, other fees 1,421 2% 1,131 2% 1,305 2% 5,019 2% 6,632 2%
Information services 8,933 12% 8,832 13% 9,462 16% 36,493 13% 36,569 14%
           
Commodity market 23,910 32% 14,789 23% 758 1% 62,646 23% 2,011 1%
Trading 13,165 18% 7,237 11% 758 1% 30,164 11% 2,011 1%
Trading in electricity 5,303 7% 2,816 4% 255 0% 11,129 4% 620 0%
Cash market 778 1% 796 1% 155 0% 2,780 1% 511 0%
Derivatives market 4,525 6% 2,020 3% 100 0% 8,349 3% 109 0%
Trading in property rights in certificates of origin 4,759 6% 2,720 4% 0 0% 11,821 4% 0 0%
Other fees paid by market participants 3,103 4% 1,701 3% 503 1% 7,214 3% 1,391 1%
Operation of RCO 4,038 5% 4,428 7% 0 0% 16,549 6% 0 0%
Clearing 6,707 9% 3,124 5% 0 0% 15,933 6% 0 0%
           
Other revenues 221 0% 1,012 2% 1,389 2% 3,035 1% 4,633 2%
         
Total 74,114 100% 65,663 100% 60,907 100% 273,825 100% 268,797 100%
Source: Consolidated Financial Statements, Company

The Group generates sales revenues both in the Polish zloty and in foreign currencies. Revenues earned in the Polish zloty in Q4 2012, Q3 2012 and Q4 2011 accounted for 86%, 91% and 88% of total revenues, respectively. That proportion was mainly determined by the revenues of WSE. The impact of revenues in foreign currencies earned by BondSpot is negligible due to the relatively low share of its revenues in the Group’s total revenues. The share of revenues denominated in the Polish currency was 87% in 2012, which was more than in 2011 (80%). The increase in the share of revenues denominated in the Polish currency in 2012 compared to 2011 was driven by a modification of the price list of information services, which consisted in replacing fees denominated in the euro with fees denominated in the Polish currency for foreign clients, effective as of January 2012 for annual fees and as of July 2011 for monthly fees.

Revenues of the Group from foreign and domestic customers in 2011-2012 and in selected quarters of 2011-2012
PLN'000, %  For the three-month period ended Year ended December 31,
December
31, 2012
% September
30, 2012
% December
31, 2011
% 2012 % 2011 %
Revenues denominated in PLN 63,800 86% 59,496 91% 53,570 88% 236,923 87% 215,348 80%
Revenues denominated in foreign currencies 10,314 14% 6,167 9% 7,338 12% 36,902 13% 53,449 20%
Total 74,114 100% 65,663 100% 60,907 100% 273,825 100% 268,797 100%
Source: Consolidated Financial Statements, Company

The average exchange rate EUR/PLN in 2012 and 2011 was 4.19 EUR/PLN and 4.12 EUR/PLN, respectively. The average exchange rate EUR/PLN in Q4 2012, Q3 2012 and Q4 2011 was 4.11 EUR/PLN, 4.14 EUR/PLN and 4.42 EUR/PLN, respectively.

The Group is not dependent on any single customer as no customer has a share above 10% of total sales revenues.

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