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Singapore Exchange Limited (SGX) today reported a record profit of $89.1 million for the third quarter of its financial year 2007 (3Q FY2007), which ended 31 March 2007.
This was an increase of 77.8% over the net profit after tax of $50.1 million in 3Q FY2006.
This brings the total profit for the first nine months of FY2007, excluding the $45.0 million write back of allowance for impairment on SGX Centre, to a record $200.5 million compared with $132.5 million for the same period last year. The strong performance can be attributed to a buoyant and active securities market that fuelled further demand for equity derivatives products and services.
In 3Q FY2007, operating revenue increased by 44.1% to $157.3 million from $109.1 million in 3Q FY2006. Operating expenses increased by 14.1% to $56.3 million over the corresponding quarter in FY2006. The resulting operating profit was $101.0 million, an increase of 69.0% over the same period last year.
In the securities market, the daily average trading value rose by 62.4% from $1.2 billion in 3Q FY2006 to $1.9 billion. This brings total securities trading value to $119.9 billion for this quarter. A total of nine new IPOs were listed, of which five came from overseas. A total of $890.9 million was raised in 3Q FY2007. Compared to the same period last year, the average market capitalisation of new listings increased by 13.4% from $185.7 million to $210.7 million.
On the back of increased volatility in the securities market, structured warrants continued to do well with trading value and volume increasing by 63.9% and 31.1% to $5.2 billion and 18.5 billion units respectively over the corresponding quarter in FY2006. Trading volume for futures also increased by 4.6% to 9.8 million contracts in 3Q FY2007 with continued interest in Asian Equity Derivatives.
Mr Hsieh Fu Hua, CEO of SGX said, “The high levels of market activity that underpinned the strong performance for the first half of the current financial year have continued into this quarter. To sustain our performance, we will continue to invest in our people and infrastructure.”
Financial Highlights of 9 Months FY2007 Results – 1 July 2006 to 31 March 2007
| S$ Million | 9 Months FY2007 | 9 Months FY2006 | Change |
3Q FY2007 |
3Q FY2006 | Change |
| Operating Revenue | 386.1 | 286.8 | 34.6% | 157.3 | 109.1 | 44.1% |
| Operating Expenses | (151.0) | (128.8) | 17.3% | (56.3) | (49.4) | 14.1% |
| Operating Profit | 235.1 | 158.0 | 48.8% | 101.0 | 59.7 | 69.0% |
| Other Gains/(Losses) | 58.1* | 9.4 | NM | 5.5 | 4.1 | 33.1% |
| Profit Before Tax and Share of Results of Joint Ventures | 293.2 | 167.4 | 75.1% | 106.5 | 63.8 | 66.7% |
| Share of Results of Joint Ventures | (1.9) | (0.3) | 638.8% | (0.4) | (0.2) | 75.1% |
| Tax | (45.8) | (34.6) | 32.0% | (17.0) | (13.5) | 25.4% |
| Profit Attributable to Equity Holders | 245.5 | 132.5 | 85.3% | 89.1 | 50.1 | 77.8% |
| Basic earnings per share (cents) | 23.29 | 12.70 | 10.59 | 8.43 | 4.80 | 3.63 |
| Interim base (tax exempt one tier) dividend per share (cents) | 6.00 | 4.50 | 1.50 | 2.00 | 1.50 | 0.50 |
NM : Not meaningful
* Includes $45 million write back of allowance for impairment of SGX Centre
The complete 9 Months FY2007 financial statements are available on SGXNET and the Investor Relations page of our website at www.sgx.com.(SGX SP, SGXL.SI)
