SINGAPORE (Jan 19): Singapore Exchange reported earnings of $88.4 million for the 2Q ended December, compared to $88.3 million a year ago.

Total revenue rose 3% to $205.0 million for 2Q18, from $199.6 million a year ago.

Revenue from its derivatives segment rose 11% to $83.3 million in 2Q18, from $75.0 million a year ago.

This was mainly due to a 6% increase in equity and commodities revenue on the back of an 18% increase in total volumes to 48.6 million contracts, as well as a 26% increase in collateral management, licence, membership and other revenue due to higher yield from collateral management.

Revenue from its market data and connectivity segment rose 4% to $24.2 million, from $23.3 million a year ago.

This was mainly due to higher market data revenue on revisions to data usage fees as well as continued growth of its colocation services business.

The improvements were partially offset by a 4% decline in revenue from its equities and fixed income segment, which accounted for 48% of SGX’s total revenue.

Comprising issuer services, securities trading & clearing, and post trade services, revenue from the segment fell to $97.5 million in 2Q18, from $101.4 million a year ago.

Expenses increased by 5% to $102.1 million in 2Q18, from $97.2 million a year ago, mainly due to higher staff costs and technology expenses, partially offset by lower discretionary expenses.

As at end December, cash and cash equivalents stood at $471.3 million.

Earnings per share (EPS) was maintained at 8.2 cents in 2Q18, unchanged from a year ago.

SGX has declared an interim dividend of 5 cents per share for the period, unchanged from a year ago.

“Looking ahead, we aim to keep pace with the positive momentum achieved over 2017. Besides expecting more listings, we will strengthen our Asian derivatives foothold through new product offerings in equities, commodities and FX,” says Loh Boon Chye, chief executive officer of SGX.

“Synergies with the Baltic Exchange are also coming through with more Asian members and a new LNG Index in the pipeline. As we continue to expand our business through strategic investments and collaborations, we intend to establish a Euro Medium Term Note programme to provide us with the flexibility to fund organic or inorganic growth, when the need arises,” he adds.

Shares of SGX closed 12 cents higher at $7.98 on Friday.