Market Activity Improvement

Derivatives Boost Hong Kong Exchange’s January-September Revenues

The bourse reports that for the first time its overall income surpassed the $10-billion mark for a nine-month reporting period

The Hong Kong Stock Exchange reported revenues of $10.6 billion for the first nine months of 2015, a 49 percent annual increase, mostly thanks to an increase in trading and clearing income from its cash and derivatives operations, the exchange said in a statement. The growth was especially marked during the second quarter of the year, it added, thanks to a pickup in market activity on the cash and derivatives markets.

Financial performance benefited from a one-off gain

Earnings before interest, tax, depreciation, and amortization (EBITDA) totaled $8.14 billion, a 66 percent improvement on the year, with the EBITDA margin rising to 77 percent thanks to the stable growth in revenues, from 70 percent in the first nine months of 2014.

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The net result came in at $6.4 billion, up from $3.64 billion a year earlier, with earnings per share at $5.41 on a fully diluted basis. The company said its financial results also benefited from a one-off gain of $445 million from the sale of a leasehold property that took place in the third-quarter of the year.

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Clearing Business Leads Results

By business segment, clearing contributed the most to the overall result, with revenues from this segment standing at $3.996 billion, up 61 percent on the year. Next came cash deals, which saw a 36 percent annual increase to $2.728 billion from $2.315 billion for the first nine months of 2014. Equity and derivatives contributed $1.675 billion to overall revenues, a 37 percent increase from $$1.315 billion.

HKEx Jan-Sept 15 metrics

Revenue from commodities trading totaled $1.322 billion, up 37 percent from $937 million reported for the year-earlier nine-month period. Platform and infrastructure operations revenue came in at $373 million, up 21 percent from $261 million, and corporate items contributed $506 million to overall revenues, up 329 percent from a negative $169 million reported for the first nine months of 2014.



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