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Singapore Exchange Delivers Strong Results

Singapore exchange logoSingapore Exchange Limited (SGX: S68), or SGX, reported a rise in first-quarter revenues, net profit and earnings per share (EPS).

The total revenue went up 15% to S$184m, while net profit and EPS both jumped 24% to S$92m and 8.6 Singapore cents respectively.

Revenue from the securities business, which accounted for the bulk of the total revenue at 38%, rose 15% to $69m. The average value of daily trading was stable at $1.3 billion. Revenue from derivatives, which made up 28% of total revenue, grew 16% to $51.7m.

The net profit margin and return on equity for the quarter 49.7% and 47.9% respectively. Last year they were 45.8% and 35.4% respectively.

The balance sheet had zero debt and it has a cash hoard of some S$863m. The net cash generated from operations in the quarter ballooned 22% to S$109m.

The amount raised from Initial Public Offerings (IPOs) fell in the first three months of the year. A total 11 IPOs raised S$2b versus a 10 IPOs last year that raised S$3.6 billion. Some of the new listings for this quarter included Kris Energy Limited (SGX: SK3), OUE Hospitality Trust (SGX: SK7), Rex International Holding Limited (SGX: 5WH) and SPH REIT (SGX: SK6U).

Magnus Bocker, Chief Executive of SGX, commented: “We will continue to execute our strategy amid uncertain market conditions. In the next few quarters, we will introduce products such as foreign exchange futures and new ASEAN equity index futures.

He added: “The growth of our distribution capabilities is on track; we have received an automated trading services licence in Hong Kong. We remain committed to strengthening our regulatory and risk management capabilities including preparing ourselves for new European and US regulatory standards.”

SGX is dishing out 4.0 Singapore cents of dividends per share for the quarter. The shares currently cost $7.29..

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.