HKEX’s Q1 Earnings Signal Strength for Group as Revenues Surge

HKEX's latest earnings saw healthy yearly growth across key areas of its business.

Hong Kong Exchanges and Clearing Limited (HKEX), a Hong Kong-based stock exchange and one of the largest in Asia, has reported its Q1 2017 operating figures for the month ending March 31, 2017, showing a strong period of growth for the group over a yearly interval, per a company filing.

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Looking at HKEX’s revenues, the exchange disclosed a revenue of $3.05 billion in Q1 2017 – this represented a double digit climb over a year-over-year basis (11.0 percent), relative to just $2.75 billion in Q1 2016. HKEX saw its operating revenues tilt lower to $833.0 million in Q1 2017, declining by a factor of -2.0 percent year-over-year from $854 million in Q1 2016.

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The group’s increases in revenues were attributed to an uptick in stock exchange listing fees and depository, custody, and nominee services fees. Additionally, HKEX saw an increase in net investment income across its corporate funds and higher interest income segments.

Moreover, HKEX’s EBITDA was also pointed higher in Q1 2017, with a reading of $2.22 billion for the quarter. This was reflective of a rise of 17.0 percent year-over-year from $1.90 billion in Q1 2016.

Profits were another area of emphasis across HKEX’s Q1 2017 earnings, with profits attributable to shareholders rising to $1.72 billion during the quarter – Q1 2016 had showed a figure of only $1.43 billion, indicating a growth of 20.0 percent year-over-year. Meanwhile basic earnings per share were also skewed positively, climbing to $1.41 per share in Q1 2017, up from $1.19 in Q1 2016, or 18.0 percent year-over-year.

HKEX recently reported its April 2017 volumes, which saw a general retreat across many key business segments. The group’s derivatives volumes saw an average daily turnover of futures and options of 763,773 contracts, decreasing -2.7 percent year-over-year from 784,873 contracts in the same period in 2016. Other segments showed similar declines.

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