JSE Limited

For the half year ended 30 June 2026, operating income increased 14.6% year-on-year, operating expenditure increased 11.5% reported but only 3.5% excluding trade-related and once-off costs, EBITDA margin expanded to 43.1% from the comparable half, net profit after tax rose 16.9%, and headline earnings per share increased 18.8% to ZAR 8.16. Net finance income decreased to ZAR 89 million. On cash flow, net cash generated was ZAR 624.7 million, up 20.6%, cash and bonds closed at about ZAR 2.6 billion, regulatory capital was ZAR 0.85 billion, and the company repurchased 1.1 million shares, equal to 1.28% of issued share capital. Segmentally, Capital Markets revenue rose to ZAR 719 million, Post-trade revenue to ZAR 619 million, JSE Clear revenue to ZAR 142 million, Information Services revenue to ZAR 273 million, and AIS revenue fell to ZAR 102 million. For full-year 2026, management narrowed operating expense guidance to 6% to 8%, reiterated capital expenditure guidance of ZAR 190 million to ZAR 230 million, and said the dividend policy remains a payout ratio of 67% to 100%.

CEO Valdene Reddy emphasized that the JSE is entering its next phase from a position of strength, pointing to 99.99% market availability, no outages, and a more diversified earnings base. She framed Forge 2031 as a disciplined 5-year roadmap with two pillars: transformation, to improve efficiency and margins through operating-model and technology changes, and growth, to unlock new revenue streams in data, technology, and a pan-African digital marketplace. Her tone was confident and forward-looking, with repeated emphasis on commerciality, accountability, and phased capital deployment.

CFO Fawzia Suliman focused on the financial mechanics behind the quarter: operating income up 14.6%, operating expenditure up 11.5% reported but 3.5% excluding once-offs and trade-related costs, and EBITDA margin up to 43.1%. She highlighted strong cash conversion, with ZAR 624.7 million in net cash generated, cash and bonds of ZAR 2.6 billion, and no need for extra credit lines or external financing; half of the cash balance is reserved for regulatory capital and investor protection funds. She also noted CapEx rose to ZAR 110.3 million from ZAR 27.1 million because of BDA modernization and other infrastructure work, and said full-year CapEx should be ZAR 190 million to ZAR 230 million while operating expense guidance is now 6% to 8%.

The only notable analyst question asked management to elaborate on how Forge 2031 will be delivered. Reddy जवाबed that the plan is built around transformation and growth, with early emphasis on improving margin via organizational redesign, modernizing technology, and scaling the core business, while growth comes from new products, data monetization, and broader market opportunities. She stressed that execution discipline, cultural change, and phased, gated capital allocation are critical, and said the company sees these initiatives as areas where it has a 'right to win.'