SGX reports 2Q performance with net profit of $84 million

2Q FY2016 Financial Summary

 Revenue: $195 million, unchanged from a year earlier
 Operating profit: $98 million, down 4%
 Net profit: $84 million, down 3%
 Earnings per share: 7.8 cents, down 3%
 Interim dividend per share: 5 cents1, up from 4 cents

All figures are for the year except for figures in brackets which are for the year earlier, unless otherwise stated

Singapore Exchange (SGX) today reported net profit of $83.7 million ($86.6 million) for 2Q FY2016. Revenue was largely unchanged at $194.6 million ($195.1 million). Expenses increased $3.5 million or 4% to $97.1 million ($93.5 million). Earnings per share was 7.8 cents (8.1 cents), and the Board of Directors has declared an interim dividend of 5 cents (4 cents) per share, payable on 4 February 2016, in line with the stated dividend policy.

Net profit for 1H FY2016 was $183.0 million, up 11% from a year earlier ($164.2 million), on the back of a strong first quarter.

Outlook

Our results this quarter reflect persistent weak market sentiment. The outlook for global markets remains uncertain as market participants adjust to the recent change in US interest rate policy, slower growth in China and volatile commodity prices. While we have successfully launched a number of new initiatives this past quarter, including SGX Bond Pro, their initial contribution to business performance will be marginal. We remain committed to our long term growth strategy.

We are focused on managing our costs, and operating expenses for FY2016 are now expected to be between $415 million and $425 million. This is lower than the previously announced range of between $425 million and $435 million.  

Technology-related capital expenditure is now expected to be between $70 million and $75 million, lower than the previously announced range of between $75 million and $80 million, as we re-prioritise our projects.