10 Things to Know About Singapore Exchange Limited’s Latest Earnings

Yesterday, Singapore Exchange Limited (SGX: S68), or SGX for short, announced its financial results for the first quarter ended 30 September 2017 (1Q2018). The reporting period was from 1 July 2017 to 30 September 2017.

Here are 10 things investors should know from the earnings announcement:

1. Revenue rose 7.1% year-on-year to S$204.5 million. All three business segments – Equities and Fixed Income, Derivatives, and Market Data and Connectivity – posted revenue growth.

2. Equities and Fixed Income’s revenue went up 1.7% to S$99.7 million. Derivatives’ revenue grew 13.7% to S$80.6 million while Market Data and Connectivity’s revenue increased 9.9% to S$24.2 million.

3. Operating profit went up 9.1% to S$106.0 million.

4. Profit attributable to shareholders climbed 9.2% to S$90.7 million.

5. Net profit margin for 1Q2018 improved to 44.4%, up from 43.5% a year ago.

6. Diluted earnings per share soared 10.4% to S$0.085.

7. An interim dividend of S$0.05 per share was declared, same as the previous year’s first quarter.

8. The company ended 1Q2018 with S$871.2 million in cash on the balance sheet and no debt. The cash level went up 9.4% from S$796.4 million seen at the end of June 2017.

9. Free cash flow for the reporting quarter was S$74.1 million (S$102.7 million in operating cash flow and S$28.6 million in capital expenditure). This is a 20.6% increase as compared to a year ago when free cash flow was S$61.4 million.

10. SGX said that the first-to-launch-in-Asia Daily Leverage Certificates saw robust trading activity since introduction in mid-July. The firm also opened its United States office in Chicago last week and signed a collaborative listings agreement with Nasdaq. Going forward, SGX is looking to collaborate with other exchanges, and is evaluating investments and partnerships to grow its FX, fixed income and commodities businesses.

Shares of SGX ended Wednesday at S$7.57. They were trading at 24 times FY2017 earnings and had a dividend yield of 3.7%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange Limited. Motley Fool Singapore contributor Sudhan P owns shares of Singapore Exchange Limited.