SGX Q2 net profit falls 3% as securities revenue drops
SGX earned S$83.7 million for its fiscal second quarter ended December, down from S$86.6 million in the same period a year ago.
- Posted 20 Jan 2016 19:03
- Updated 20 Jan 2016 22:45
SINGAPORE: The Singapore Exchange on Wednesday (Jan 20) posted a 3 per cent drop in quarterly net profit as revenue from its securities business fell.
SGX earned S$83.7 million for its fiscal second quarter ended December, down from S$86.6 million in the same period a year ago. Revenue from securities fell 10 per cent to S$46.6 million, while revenue from derivatives rose 1 per cent to S$77.6 million.
Looking ahead, SGX said it will focus on managing costs. Operating expenses for the fiscal year to June 2016 are now expected to be between S$415 million and S$425 million, below the previously announced range of S$425 million and S$435 million.
Meanwhile, technology-related capital expenditure is now expected to be between S$70 million and S$75 million, lower than the previously announced range of S$75 million to S$80 million, as SGX "re-prioritise" projects.
The Singapore bourse operator will, however, pay an interim dividend of 5 cents a share, which is higher than the 4 cents a share paid out a year earlier. This is in line with SGX's policy of declaring a base dividend of 5 cents a quarter starting this financial year.