SINGAPORE (April 20): Singapore Exchange posts a 6.8% decline in net profit to $83.1 million in the third quarter ended March 31, from $89.2 million a year ago.
Excluding a one-off loss of $4.0 million from the disposal of its investment in the Bombay Stock Exchange, net profit would have been $87.0 million, 2% lower than a year ago.
Operating revenue fell 1.5% to $202.7 million in 3Q17, from $205.8 million in the corresponding period last year.
Revenue from derivatives led the decline, falling 8.6% to $75.2 million in 3Q, from $82.2 million a year ago.
This was partially mitigated by a 1.1% increase in revenue from equities and fixed income to $103.1 million, from $102.0 million a year ago, as well as market data and connectivity revenue, which rose 13.0% to $24.4 million, from $21.6 million a year ago.
Expenses fell 3% to $99.7 million, mainly due to lower volume related processing and royalties and professional fees.
During the quarter, SGX invested $19.2 million in capital expenditure to migrate to a new secondary data centre, enhance its securities post-trade system, and improve operational resiliency.
Cash and cash equivalents stood at $465.4 million as at March 31, 2017.
SGX’s Board of Directors has declared an interim dividend of 5 cents per share, payable on May 8.
“Besides looking at ways to improve Singapore’s equities market structure and ecosystem, we will continue to widen and deepen our suite of products and services, to enhance our position as an offshore investment, trading and risk management centre,” says Loh Boon Chye, Chief Executive Officer of SGX.
Shares of SGX closed 3 cents lower at $7.45 on Thursday.
