How are energy investors positioned?
Introduction & Market Context
The Warsaw Stock Exchange (WSE:GPW) reported exceptional Q2 2025 financial results during its presentation on August 21, 2025, showcasing record-high revenues and significant profit growth driven by surging equity turnover. The exchange’s performance outpaced European peers, with cash equity turnover increasing by nearly 49% year-over-year to PLN 131.5 billion.
The WSE’s indices demonstrated remarkable strength, with the main indices rising over 30% year-over-year in H1 2025. Notably, the WIG index surpassed the milestone of 100,000 points on April 24, 2025. This performance has been reflected in the company’s share price, which reached an all-time high of PLN 58.0 on August 11, 2025.
As shown in the following chart comparing WSE’s turnover growth with other European exchanges, the Polish exchange significantly outperformed its peers with a 50.4% year-over-year increase in cash equity turnover:
Quarterly Performance Highlights
WSE Group delivered historic financial results in Q2 2025, with revenues reaching PLN 144.1 million, a 19.2% increase compared to the same period last year. This growth represents a significant acceleration from the 12% year-over-year increase reported in Q1 2025. The Financial Market segment was the primary growth driver, with revenues increasing by 23.7% to PLN 95.2 million, while the Commodity Market segment grew by 12.5% to PLN 44.4 million.
The company’s profitability metrics showed even stronger improvement, with EBITDA surging by 43.0% year-over-year to PLN 62.4 million and net profit increasing by 42.9% to PLN 57.7 million in Q2 2025. The cost-to-income ratio improved by 6.4 percentage points to 62.9%, reflecting enhanced operational efficiency.
The comprehensive financial results are presented in the following table:
WSE Group’s revenue mix reveals that cash equity trading remains the largest contributor at 36.5% of total revenues, followed by market data from the financial market at 32.7%. The Financial Market segment’s share of total revenue increased to 66.1% in Q2 2025, highlighting its growing importance to the group’s performance.
Detailed Financial Analysis
The exceptional performance in equity trading was the cornerstone of WSE’s Q2 results, with revenues in this segment rising by 45% year-over-year, supported by significantly higher trading volumes. The number of equity transactions increased by 33.3% to 18.4 million in Q2 2025, while the average fee remained stable at 0.33 basis points.
The Commodity Market segment also delivered strong results, particularly in gas trading, where revenue increased by 51.2% year-over-year to PLN 11.8 million in Q2 2025. This growth reflects the increasing role of gas in Poland’s energy generation mix and contributed significantly to the overall performance of the Commodity Market segment.
On the cost side, operating expenses increased by 8.1% year-over-year to PLN 90.6 million in Q2 2025, primarily driven by higher staff costs (+13.5%) and external services (+6.7%). Despite this increase, the company’s EBITDA margin improved to 43.3% in Q2 2025, compared to 31.3% in the same period last year, demonstrating effective cost management.
The company maintained a strong liquidity position with PLN 468.1 million in net cash as of June 30, 2025. Capital expenditures increased to PLN 40.4 million in H1 2025, primarily related to IT equipment and intangible assets for the implementation of the WATS trading platform.
Strategic Initiatives
WSE Group continues to advance several strategic initiatives aimed at developing the Polish capital market. The Analytical Coverage Support Programme 5.0 (PWPA) has expanded to cover a record 65 companies, primarily small and medium-sized enterprises. The company is also working on revitalizing the NewConnect market by updating qualification criteria, with the first qualification expected in September 2025.
Other key initiatives include the WSE IPO Academy, a five-month workshop program with recognized capital market institutions launching in October, and the expansion of ETF offerings. The ETF/ETC Zero Trading Fees Program has contributed to a 109.6% increase in ETF/ETC turnover in H1 2025, with the recent debut of Beta ETF Dividend Plus on August 18th and more ETFs planned for the near future.
A particularly significant development is the introduction of the Personal Investment Account (OKI), which offers tax incentives for individual investors. Based on the success of similar programs in other countries, this initiative has the potential to significantly boost Poland’s domestic equity market capitalization.
The company is also making progress on implementing its proprietary WATS trading platform, with production deployment scheduled for November 10, 2025. This represents a significant technological upgrade that should enhance the exchange’s capabilities and efficiency.
Forward-Looking Statements
The outlook for H2 2025 remains positive, with continued growth in equity turnover observed in July (+69.2% year-over-year) and August (+41.0% year-over-year). The gas market also shows strong momentum, with turnover increasing by 84.1% in July and 98.7% in August compared to the same periods last year.
However, the company expects higher year-over-year cost growth in H2 2025 due to intensified work on the WATS platform implementation. Capital expenditures in H2 2025 are projected to be similar to or higher than in H1 2025, reflecting continued investment in technological infrastructure.
The introduction of the Personal Investment Account (OKI) represents a significant long-term growth opportunity for the Polish capital market, potentially increasing domestic equity market capitalization relative to GDP, which currently stands at 26%. This initiative, combined with the company’s other strategic programs, positions WSE for sustained growth beyond 2025.
WSE’s strong Q2 2025 performance, coupled with its strategic initiatives and positive outlook, demonstrates the exchange’s resilience and growth potential in an increasingly competitive European market landscape.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.