SINGAPORE: Singapore Exchange (SGX) reported 1H FY2021 adjusted net profit of S$228.0 million (S$213.9 million), with revenues of S$520.8 million (S$478.5 million).
Adjusted EBITDA stood at S$321.2 million (S$298.8 million), while adjusted earnings per share was 21.3 cents (20.0 cents).
Moving forward, to better reflect its underlying operating performance, SGX will disclose additional financial measures, which exclude items that have less bearing on its operating performance.
The Board of Directors has declared an interim quarterly dividend of 8.0 cents (7.5 cents) per share, payable on 8 February 2021. This brings total dividends in 1H FY2021 to 16.0 cents (15.0 cents) per share.
Loh Boon Chye, Chief Executive Officer of SGX, said, “We had a solid first-half performance with growth across all three business segments, amid an uncertain global environment.
The heightened demand for China access and risk-management solutions, coupled with the early success of our expanded pan-Asia derivative product suite and higher trading activity in our stock market, led to stronger performance in our Equities business. We have also grown our FICC and DCI pillars which now contribute a third of our revenues, bolstered by newly acquired BidFX and Scientific Beta.”
“Having established ourselves as a multi-asset exchange, we will continue to drive growth through strategic partnerships, client acquisitions and new product offerings such as ETFs covering equities and fixed income. Strengthening our sustainability capabilities and solutions is a key priority, together with the building up of our digital assets expertise. Today, we announced our partnership with Temasek Holdings to build a digital asset infrastructure focused on capital markets workflows. In the coming months, we will expand our fixed income trading capabilities and make further investments to enhance our FX platform,” added Mr Loh.
Market data and indices revenue increased by 85% mainly due to the consolidation of revenues from Scientific Beta, excluding which, Market data and indices revenue would have increased by S$1.0 million.
Total expenses increased 11% to S$248.3 million (S$224.4 million). Excluding BidFX and Scientific Beta, total expenses would have decreased 3% to S$217.9 million (S$224.4 million). Adjusted expenses, which exclude amortisation of purchased intangibles, acquisition-related expenses and other expenses, increased 9% to S$242.1 million (S$222.4 million).
Operating expenses increased 10% to S$199.3 million (S$180.6 million) mainly from higher staff costs, and an increase in processing and royalties expenses. The average headcount for 1H FY2021 was 968 (832), including 120 staff from Scientific Beta and BidFX.
Depreciation and amortisation increased 12% to S$49.0 million (S$43.8 million) mainly due to the consolidation of depreciation and amortisation relating to Scientific Beta and BidFX. This was partially offset by lower depreciation following the end of lease of SGX’s premises.
Technology-related capital expenditure was S$18.8 million (S$12.7 million). These investments were mainly for upgrades to SGX’s Titan OTC commodities trade reporting system, technology refresh of the National Electricity Market of Singapore (NEMS) infrastructure and the digitalisation of retail investor services.
As guided previously, SGX’s total expenses and capital expenditure for FY2021 are expected to remain between S$535-$545 million and between S$55-S$60 million respectively.
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