Singapore Exchange Limited (SGX) today announced that it has achieved the highest
quarterly profit since its listing in 2000. For the first quarter of the financial year
2008 (1Q FY2008) which ended 30 September 2007, SGX posted a profit of $130 million which
represents a 173% growth as compared to the $47.7 million reported in the corresponding
period in FY2007. The strong results were achieved on the back of robust securities
trading driven by high volatility and liquidity in the markets.
In line with the new dividend policy, the directors are pleased to declare an interim base
dividend of 3.0 cents per share on a tax exempt one-tier basis.
Operating revenue in 1Q FY2008 registered a 111.5% gain from $103.9 million in 1Q FY2007
to $219.7 million. Operating expenses increased by 26.1% from $46.2 million to $58.3
million in the corresponding period. The increase in expenses was largely due to higher
variable bonus provision, staff costs and rental expense following the sale and leaseback
of SGX Centre.
All three revenue streams grew in this quarter: securities market revenue increased by
190.3% from $48.6 million in 1Q FY2007 to $141.2 million in 1Q FY2008; net derivatives
clearing revenue rose 39.3% from $26.8 million to $37.3 million; and stable revenue grew
44.7% from $28.5 million to $41.2 million in 1Q FY2008.
The securities market recorded a daily average trading value of $2.6 billion for the first
quarter which is an increase of 185.3% from $0.9 billion in 1Q FY2007. The annualised
trading velocity rose to 85% as compared to 46% in the corresponding period in FY2007. In
this quarter, there were a total of 22 new listings as compared to 6 in 1Q FY2007. These
new listings raised $1.9 billion (1QFY2007: $1.1 billion) with a total market
capitalisation of $5.1 billion (1QFY2007: $2.5 billion).
The derivatives market also did well. The futures trading volume recorded a 38.4% gain
from 8.9 million contracts in 1Q FY2007 to 12.3 million contracts in this quarter.
Structured warrants trading value grew from $3.4 billion in 1Q FY 2007 to $7.5 billion in
1Q FY2008.
Moving forward, SGX expects to launch the new sponsor-supervised board by end 2007. The
new board aims to attract more growth companies across Asia to list on SGX. The revision
of the minimum bid schedule by January 2008 is expected to improve trading liquidity.
Financial Highlights of 1Q FY2008 Results – 1 July 2007 to 30
September 2007
| S$ Million | 1Q FY2008 |
1Q FY2007 |
Change |
| Operating Revenue | 219.7 |
103.9 |
111.5% |
| Operating Expenses | (58.3) |
(46.2) |
26.1% |
| Operating Profit | 161.4 |
57.7 |
179.8% |
| Other Gains/(Losses) | (1.0) |
3.0 |
NM |
| Profit Before Tax and Share of Results of Joint Ventures | 160.4 |
60.7 |
164.5% |
| Share of Results of Joint Ventures | (0.4) |
(0.7) |
(41.0%) |
| Tax | (30.0) |
(12.3) |
144.9% |
| Profit Attributable to Equity Holders | 130.0 |
47.7 |
172.7% |
| Basic earnings per share (cents) | 12.24 |
4.54 |
7.70 |
| Interim base (tax exempt one tier) dividend per share (cents) | 3.00 |
2.00 |
1.00 |
| NM : Not meaningful |  |
|
|
The complete 1Q FY2008 financial statements are available on SGXNET and the Investor Relations page of our website at www.sgx.com. (SGX SP, SGXL.SI)
