Singapore Exchange Limited (SGX:S68) has just reported a set of solid financial metrics for the fiscal year from July 1, 2014 to June 30, 2015, with both profits and revenues marking a robust rise and investors set to enjoy a decent annual dividend.
Let’s examine the particular numbers:
The net profit reached SGD 348.6 million (USD 255.6 million), up 9% from the previous year.- Revenue reached SGD 778.9 million, up 13% from a year earlier. Excluding the revenue of SGD 18 million generated at Energy Market Company Pte Ltd (EMC), revenues increased by 11% in annual terms.
- Earnings per share reached 32.6 cents in FY2015, up from 30 cents last year.
- The Board of Directors has recommended a final dividend of 16 cents per share, bringing the total dividend to 28 cents per share, unchanged from a year earlier.
- Expenses increased 20% over the year to SGD 376.7 million primarily due to increased staff, technology and processing costs, as well as royalties associated with the growth in derivatives traded volumes.
Commenting on the results, Loh Boon Chye, Chief Executive Officer of SGX, said: “SGX has delivered a good set of results for the year. We are conscious of the challenges ahead and the need to address new listings activity and work with our stakeholders towards our common goal of a more liquid and higher-quality securities market.”
Results across sectors
As a result of lower market volatility, securities daily average traded value (SDAV) and total traded value both decreased 4% to SGD 1.1 billion and SGD 274.3 billion respectively. This resulted in a Securities revenue decline of 8% over the year to SGD 209.3 million.
The Derivatives business, however, had another record year with revenue up 42% to SGD 295.7 million. Total volumes increased 55% over the year to 161.2 million contracts.
Volumes were supported by the strong performance of global commodities benchmarks, with Iron Ore volumes up 258%, and by the SGX FTSE China A50 Index futures whose volume increased 220%. This achievement was partially offset by a decline in the volumes of the Japan Nikkei 225 Index futures and options.
Market Data and Connectivity revenues rose by SGD 4.6 million or 6% over the year to SGD 81.2 million. Depository Services revenue increased by SGD 9.2 million or 10% over the year to SGD 104.2 million, and Issuer Services revenue increased SGD 9.3 million or 12% to SGD 87.6 million.
Outlook
“We are optimistic about our business prospects, and will continue to invest in building our platform. The current outlook for the global economy remains uncertain and volatile. We expect this to pose challenges to our Securities market, but support continued growth in the demand for our Derivatives products. Uncertainties in the Chinese market could influence our Derivatives trading volumes, and increasing competition from global exchanges will affect our financial results over time.” said Mr. Loh.
To view the official announcement about SGX’s financial metrics for FY2015, click here.