SINGAPORE (July 27): Singapore Exchange (SGX) posted its highest revenue since its 2000 listing after all three core businesses of securities, bonds and derivatives registered higher revenue.
Earnings for the FY18 ended June rose 7% to $363 million -- also its highest since 2013 -- while revenue rose 5% at $845 million. Analysts had expected earnings of $372 million on revenue of $849.2 million, according to Thomson Reuters.
Loh Boon Chye, Chief Executive Officer of SGX, says, “FY2018 was a record milestone in our financial performance as we achieved our highest revenue since listing in 2000 and the highest profit in five years. All three core businesses registered higher revenues. Our securities daily average traded value (SDAV) hit a five-year high, with the number of bond listings and derivatives trading volumes reaching record highs.”
Equities and fixed income revenue – comprising revenue from issuer services, securities trading & clearing and post trade services – increased 1% to $406.6 million from a year ago, accounting for 48% of total revenue. Derivatives revenue rose 12% to $339.8 million and accounted for 40% of total revenue.
For the 4Q18 ended June, SGX posted a 1.8% drop in earnings to $83.67 million from a year ago on the back of a 6% rise in operating expenses mainly due to the legal fees incurred as a result of the interim injunction filed by the National Stock Exchange of India (NSE) to bar SGX from launching new India derivatives products. Revenue for the 4Q18 came in 2.5% higher at $212.95 million from a year ago.
SGX's board has proposed a final dividend of 15 cents per share. This brings the total annual dividend to 30 cents per share. If approved, this would be the highest annual dividend in 10 years.
SGX also announced a new dividend policy from one based on 80% of earnings, to one based on an absolute amount starting FY2019.
SGX said the new policy aims to pay a sustainable and growing dividend over time, consistent with the company’s long-term growth prospects. This will provide flexibility for the company to balance its dividend payments with the need to retain earnings to support growth.
SGX will pay a higher dividend of 7.5 cents per share, starting from 1Q19. This is an increase of 2.5 cents per share and shareholders will receive their dividends earlier in the financial year, compared to previous years.
Year to date, shares in SGX are up 1.3% at $7.57.
