SGX's net earnings fell 22.4% to $75.8m

Blame it on weak securities revenue.

According to OCBC Investment Research, Singapore Exchange reported 3QFY14 results which came in within our expectations. Operating revenue fell 13.1% YoY but inched up 0.6% QoQ to S$165.6m, while net earnings dipped 22.4% YoY but rose 1.1% QoQ to S$75.8m.

The YoY decline was driven largely by lacklustre Securities revenue (-32.1% to S$52.3m) as the daily average traded value slumped 37% to S$1.1b.

Here's more:

Although SGX’s Derivatives revenue slipped slightly by 1.5% YoY to S$52.3m, there was an encouraging 10% growth in contract volumes if we exclude Nikkei 225 futures and options, which had a very strong 3QFY13. Another key highlight during 3QFY14 was SGX’s announcement of a series of initiatives to improve the quality and liquidity of the securities market.

For 9MFY14, operating revenue was almost flat at S$514.2m (+0.3%), forming 71.5% of our full-year forecast. Net earnings of S$243.0m represented a decline of 2.1% and constituted 72.3% of our FY14 projection. We are expecting a better 4Q ahead. An interim dividend of 4 S cents/share was declared, similar to 3QFY13, and brings 9MFY14 declared dividends to 12 S cents/share.

Looking ahead, SGX expects its FY14 operating expenses to come in around S$310-315m, an improvement from its previous S$320-330m guidance. It also intends to expand its distribution network and product offerings, which includes introducing RMB futures in 1QFY15 (subject to regulatory approvals).

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia