Singapore Exchange (SGX Group) has posted adjusted net profit of $320.1 million for 1HFY2025 ended Dec 31, 2024, up 27.3% y-o-y; while adjusted ebitda was up 23.9% y-o-y at $426.9 million.
Adjusted earnings per share was 29.9 cents, up from 23.5 cents this time last year.
Adjusted ebitda, net profit and earnings per share exclude “certain non-cash and non-recurring items that have less bearing on SGX Group’s operating performance”, says the bourse operator on Feb 6. “Hence, they better reflect the group’s underlying performance.”
Without the adjustments, ebitda would have risen 23.4% y-o-y to $425.3 million; while net profit would have risen 20.7% y-o-y to $340 million; and earnings per share would have come in at a higher 31.8 cents for 1HFY2025.
After deducting transaction-based expenses, net revenue increased 15.6% y-o-y to $646.4 million, with growth in all business segments. This figure includes associated treasury income, which grew $1.4 million y-o-y.
See also: SGX posts 4.5% higher adjusted net profit for FY2024, raises quarterly DPS to 9 cents
SGX’s board of directors has declared an interim quarterly dividend of 9.0 cents per share, up from 8.5 cents this time last year and unchanged h-o-h. This is payable on Feb 21. This brings total dividends in 1HFY2025 to 18.0 cents per share.
SGX reports revenue across four segments: fixed income, currencies and commodities (FICC), cash equities, equity derivatives and platform and others.
Revenue from SGX’s FICC segment increased 13.4% y-o-y to $159.1 million and accounted for 24.6% of total net revenue in 1HFY2025.
See also: SGX enjoys FX, iron ore derivatives boost in 1HFY2024; insists spac rules 'work'
Fixed income net revenue increased 22.8% y-o-y to $4.8 million. There were 395 bond listings raising $145.6 billion during the six-month period, compared to 489 bond listings raising $131.7 billion a year earlier.
Meanwhile, currencies and commodities net revenue increased 13.1% y-o-y to $154.3 million.
The increase in trading and clearing revenue was mainly from higher volumes in OTC FX, currency derivatives and commodity derivatives, says SGX.
OTC FX net revenue increased 35.7% y-o-y to $55.0 million. OTC FX headline average daily volume (ADV) increased 35.4% y-o-y to US$136 billion. Currency derivatives volumes increased 43.2% y-o-y to 33.0 million contracts, mainly due to higher volumes in INR/USD and USD/CNH FX futures contracts.
Commodity derivatives volumes increased 14.5% y-o-y to 32.9 million contracts, mainly due to higher volumes in iron ore derivatives, says SGX.
SGX’s cash equities net revenue rose 22.3% y-o-y to $192.6 million and accounted for 29.8% of total net revenue.
SGX recorded five new equity listings during the six-month period, which raised $19.7 million. This is down from four new equity listings that raised $19 million in 1HFY2024.
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Secondary equity funds raised were $3.1 billion, up from $0.6 billion this time last year.
Securities daily average traded value (SDAV) increased 31.2% y-o-y to $1.3 billion and total securities traded value increased 34.4% y-o-y to $162.8 billion.
This was made up of cash equities, where traded value increased by 35.3% y-o-y to $156.9 billion; and other products, where traded value increased 12.8% y-o-y to $5.9 billion. There were 129 trading days in 1HFY2025, up from 126 this time last year.
Equity derivatives net revenue increased by 21.6% y-o-y to $177.4 million and accounted for 27.4% of total net revenue.
An 18.8% y-o-y increase in trading and clearing revenue was mainly driven by a 17.4% y-o-y increase in total equity derivatives volumes. Higher volumes of FTSE China A50, GIFT Nifty 50, MSCI Singapore and FTSE Taiwan index futures contracts were partially offset by lower volumes of Nikkei 225 index futures contracts, says SGX.
The average net fee per contract for equity, currency and commodity derivatives was comparable at $1.30, flat from $1.31 this time last year.
Finally, SGX’s platform and others segment saw 1.7% higher net revenue in 1HFY2025, accounting for 18.1% of total net revenue.
Market data revenue rose 3.8% y-o-y to $25.1 million, connectivity revenue rose 8.7% y-o-y o $41.8 million, indices and other revenue fell 3.7% y-o-y to $55.3 million; and transaction-based expenses rose 4.3% y-o-y to $5.0 million.
Total expenses were comparable at $263.1 million in 1HFY2025, largely flat from $262.8 million this time last year. Higher variable staff costs were mainly offset by lower depreciation and amortisation and fixed staff costs, says SGX.
Adjusted total expenses are comparable at $257.3 million, from $256.4 million in 1HFY2024, excluding amortisation of purchased intangible assets and other one-off adjustments.
SGX’s total capital expenditure was $22.1 million in 1HFY2025, up 19.5% y-o-y. “These investments include the modernisation of our technology infrastructure. We expect our expenses and capital expenditure to be at the lower end of our FY2025 guidance, previously guided at a 2%-4% increase and between $70 million to $75 million respectively,” says SGX.
Loh Boon Chye, CEO of SGX Group, says: “We started the fiscal year strong with our highest half-year revenue and net profit since listing. Cash equities and equity derivatives led our broad-based performance, followed by currencies and commodities, with notable growth in our OTC FX business now contributing 5% of the group’s ebitda.”
Loh says SGX saw rising global demand for its derivatives suite, increased trading across products and higher activity during US and European hours. “Trading in our cash equities market grew alongside the introduction of more investment options for investors. While there could be some moderation of macro tailwinds in the near term, we are focused on growing our businesses and remain optimistic about our medium-term outlook.”
SGX will hold an earnings call later this morning.
Shares in SGX closed 10 cents higher, or 0.81% up, at $12.43 on Feb 5. Its shares have risen 33% over the past year.
Table: SGX Group
