The Singapore Exchange (SGX) Group S68 has reported earnings of $570.9 million for the FY2023 ended June 30, 26.5% higher than FY2022’s earnings of $451.4 million.
Earnings per share (EPS) for the year stood at 53.4 cents.
Revenue rose 8.7% y-o-y to $1.19 billion mainly due to higher derivatives revenue, which grew by 27.2% y-o-y. Revenue for derivatives includes equities derivatives, currencies and commodities futures and options trading and clearing revenue and associated treasury income. Total treasury income grew by $88.9 million.
Ebitda rose by 8.5% y-o-y to $687.9 million.
On an adjusted basis, SGX’s net profit stood at $503.2 million, 10.3% higher y-o-y. Adjusted EPS stood at 47.1 cents while adjusted ebitda was up by 8.0% y-o-y at $688.6 million.
Commodity derivatives volume increased 35.4% to 41.0 million contracts while currency derivatives volume increased 28.7% to 36.7 million contracts. OTC FX average daily volume (ADV) increased 7.3% to US$75.8 billion ($103.08 billion).
The increase in treasury and other revenue was driven mainly by higher treasury income and the full-year consolidation of MaxxTrader, which was acquired in January 2022.
Equities revenue, which comprises cash and derivatives, increased by 1.5% y-o-y to $709.2 million.
Equities – cash fell by 10.9% y-o-y to $346.1 million as revenues from listing, trading and clearing as well as securities settlement fell on a y-o-y basis.
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FY2023 saw eight new equity listings raising $37.6 million, down from the 17 seen in FY2022 which raised $1.9 billion. The group raised secondary equity funds of $4.8 billion, down 15.8% y-o-y.
Daily average traded value (DAV) fell by 13.4% y-o-y to $1.1 billion while total traded value – which is made up of cash equities and other products – fell by 14.1% y-o-y to $275.5 billion. Total traded value for cash equities and other products fell on a y-o-y basis. There were a total of 250 trading days in the year, down from the 252 days in the year before.
Equities – derivatives rose by 17.0% y-o-y to $363.1 million as trading and clearing revenue stood comparable at $281.6 million. Treasury and other revenue surged by 2.8 times to $81.5 million from $28.6 million previously mainly due to higher treasury income. Trading and clearing revenue was impacted by lower trading volumes and partially offset by higher average fees in key equity derivatives contracts.
Data, connectivity and indices revenue dipped by 0.2% y-o-y to $147.1 million thanks to the increase in connectivity revenue and offset by the lower market data and indices revenue. Market data and indices revenue declined mainly due to lower revenue from the group’s index business while connectivity revenue rose due to the upselling of connectivity services to existing clients and the introduction of new GIFT Connect-related co-location and network services.
A proposed final quarterly dividend of 8.5 cents per share has been proposed, bringing the full year’s dividend to 32.5 cents, up from FY2022’s 32.0 cents. Barring unforeseen circumstances, the annualised dividend will be 34.0 cents per share, an increase of 6.3%. The final quarter's dividend will be paid out on Oct 20.
As at June 30, cash and cash equivalents stood at $777.3 million.
“Our financial performance continues to demonstrate the strength and resilience of our multi-asset business in a challenging macro environment. Global investors are increasingly turning to our trusted international marketplaces to invest and manage portfolio risk, with our revenue growth primarily driven by our derivatives business,” says CEO Loh Boon Chye.
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“Our currencies and commodities franchises have grown substantially, achieving record volumes while we cemented our foothold as the preferred venue for Asian equity derivatives. With the positive momentum in our OTC FX business, we expect to achieve our goal of US$100 billion average daily volume by FY2025 or earlier,” he adds.
“While the unprecedented rapid tightening of monetary policies around the world has impacted capital-raising activities globally and in Singapore, we are optimistic that our pipeline of listings will come to market when conditions improve,” he continues.
In FY2024, Loh says that the group is looking to scale its multi-asset offerings globally through its “network, partnerships and geographical expansion of client coverage”.
“Asia is at the centre of global economic growth, and SGX Group is at the heart of international capital flows to this part of the world. We remain on track to achieve high-single-digit revenue growth, and are aiming to reward our shareholders with a mid-single-digit percentage increase in our dividend per share over the medium term,” he says.
Shares in SGX closed 9 cents higher or 0.94% up at $9.67 on Aug 16.
