Singapore Exchange – Second Quarter Results (FY2012)

Singapore Exchange (SGX) released its second quarter results for FY2012 covering period 1 October to 31 December 2011.

Total revenue for the quarter declined 14.0 per cent to $148.1 million over the corresponding period of previous year. This is due mainly to reduced securities trading volume. The daily average trading value was $1.1 billion significantly lower than $1.8 billion in the previous year. However, revenues from Derivatives, Depository, Market data, Member services and Connectivity grew 7 per cent to $80.3 million. SGX managed to reduce expenses by 3.9 per cent to $68.9 million.

Net profit for the quarter was down 11.8 per cent to $65.4 million. Earnings per share (EPS) was 6.13 cents, declined from 6.95 cents in the previous year. SGX continues to declare interim dividend of 4 cents per share, which is the same amount as previous year despite a lower EPS this time round. Dividend payout is 65.2 per cent of EPS.

SGX had a healthy unrestricted cash reserve of $486.7 million compared to $463.6 million (2nd Quarter FY2011).

If the securities market continues to show poor daily trading volume, this will impact the performance of SGX moving forward. This is the only concern at the moment because the derivative market was growing nicely.

Copyright © 2012, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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