SGX Q1 net profit stable at S$91m, declares interim dividend of 7.5 cents

THE Singapore Exchange on Friday reported a net profit of S$91.1 million for the first quarter ended Sept 30, comparable to S$90.7 million in the year-ago period. This was on the back of stable operating profit of S$106.4 million, compared to S$106 million in the year-ago period.

Revenue for the first quarter of the 2019 financial year was S$208.9 million, up 2 per cent from S$204.5 million in Q1 2018. However, expenses rose 4 per cent or S$4 million to S$102.5 million.

Earnings per share were unchanged at 8.5 Singapore cents. SGX has declared an interim dividend of 7.5 Singapore cents per share, payable on Nov 5, which is higher than the dividend of five Singapore cents declared a year ago.

Noting that continued market volatility will increase demand for risk management and investment solutions, SGX chief executive officer Loh Boon Chye said: "To cater to evolving investor needs, we will be extending our product offerings in the securities market. As we grow our global network and partnerships, we will also establish new offices in New York and San Francisco to acquire new customers and enhance client coverage."

Cash from operating activities was S$98.2 million, compared to S$102.7 million previously, while total equity stood at S$946.1 million as at Sept 30, 2018, compared to S$935.1 million a year ago.

SGX noted "strong record revenues" in its derivatives business, with derivatives revenue up 21 per cent to S$97.7 million, contributing 47 per cent of total revenue.

However, its equities and fixed income business - comprising issuer services, securities trading and clearing, and post-trade services - declined 13 per cent to S$86.4 million. This represented 41 per cent of total revenue, down from 49 per cent in the year-ago period.

Issuer services revenue was down 12 per cent to S$19.5 million, securities trading and clearing revenue declined 8 per cent to S$46.9 million, while post-trade services revenue fell 24 per cent to S$20 million.

Another business segment, market data and connectivity, saw revenue edge up 2 per cent to S$24.7 million.

SGX shares closed down two Singapore cents or 0.29 per cent at S$6.93 on Friday before the results release.