SGX’s Q3 FY2017 Financials See Mixed Performance, Derivatives Fall

SGX's recent financials suffered a slight pullback, led by its derivatives business.

Singapore Exchange (SGX), the country’s paramount exchange operator, encompassing the previous three-month period at the exchange – the latest metrics incurred a slight decline relative to the year prior, largely impacted by volatility, per a group filing.

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In terms of the group’s Q3 FY2017 net profit, SGX yielded a figure of $83.1 million, falling -5.8 percent on a quarter-over-quarter basis from $88.3 million in Q2 FY2017. By extension, looking at its 2016 counterpart, the group’s net profit also was lower when compared to $89.2 million, or 6.8 percent lower year-over-year. SGX’s operating profits were lower due to a one-time disposal of its investment on the Bombay Stock Exchange.

Looking at SGX’s operating revenues during Q3 FY2017, the group reported $202.7 million over this timeframe, justifying a tepid growth of 1.5 percent quarter-over-quarter from $199.6 million in Q2 FY2017 – its latest figure was however lower relative to $205.8 million in Q3 FY2016, or -1.6 percent year-over-year.

Operating expenses also ticked higher in Q3 FY2017, coming in at $99.7 million, higher by 2.6 percent quarter-over-quarter from $97.2 million in Q2 FY2017. This segment did decline over a year-over-year basis, falling -3.4 percent from $103.2 million in Q3 FY2016.

The largest business segment seeing growth in Q3 FY2017 was SGX’s Market Data and Connectivity sector, which grew to $24.4 million, up 13.0 percent year-over-year from $21.6 million in Q3 FY2016. Conversely, SGX’s derivatives business saw the largest pullback on a year-over-year basis, falling to $75.2 million from $82.2 million in Q3 FY2016, or -8.5 percent.

SGX’s earnings per share (EPS) also notched a decline on a year-over-year interval, disclosing $0.078 cents per share in Q3 FY2017, down -7.0 percent from $0.083 cents per share in Q3 FY2016 – the group’s dividend was unchanged at $0.05 cents per share in Q3 FY2017.

According to Loh Boon Chye, Chief Executive Officer of SGX, in a statement on the group’s outlook and earnings, “We remain focused on executing our strategy to diversify our business mix across geography and asset classes. Besides looking at ways to improve Singapore’s equities market structure and ecosystem, we will continue to widen and deepen our suite of products and services, to enhance our position as an offshore investment, trading and risk management centre.”

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