Singapore Exchange slides in profits

Net profit down to $65.4 million from $74.2 million in the same quarter last year.

In its latest 2Q FY2012 earnings report, SGX posted revenues of $148.1 million, which is also lower than the $172.2 million from a year ago.

Earnings per share also tumbled to 6.1 cents in 2Q FY2012 from 7.0 cents.

SGX insists though that when the lower profit numbers are combined with figures from the previous quarter, the resulting 1H FY2012 performance is rosy.

The $65.4 million net profit in 2Q FY2012 "brings SGX’s net profit to $152.9 million for the six months ended 31 December 2011 (1H FY2012), 3% higher than last financial year’s $148.4 million." said SGX in a release.

Mr Magnus Bocker, SGX CEO, said the fact alone that SGX eked out a profit is cause for celebration given the market slowdown.

“SGX reported a net profit of $65.4 million in difficult market conditions following a decline in securities turnover. We continue to expand our products and
services, including the start of the world’s first clearing of OTC Foreign Exchange Forwards. We also welcomed our first Catalist mineral, oil and gas listing. During the quarter, we effectively transferred customers’ positions and margins following the collapse of MF Global. This demonstrates the importance of a strong and capable clearing house. We remain cautious and focused on cost discipline amid global economic challenges,” he said.