ASX bid costs take toll on SGX

Posted on April 19, 2011 by

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SINGAPORE Exchange’s fiscal third-quarter net profit fell 10.2 per cent from a year earlier year due to costs associated with the group’s failed bid for ASX Ltd and continued technology investment.

Net profit for the three months to March 31 was $S67 million ($51.2m), down from $S74.6m, the exchange said.

Excluding $S12m in one-off costs in the third quarter associated with SGX’s $8.4 billion proposed bid for ASX and $S1.7m in net gains from the disposal of a freehold property, net profit was $S77.3m.

Revenue was up 10.1 per cent at $S168.8m, compared with $S153.3m in the same period last year, helped by growth in the exchange’s core securities and derivatives businesses.

Expenses rose 17.9 per cent to $S75m from $S63.6m on the back of SGX’s increased spending on technology initiatives such as a new data center and new high frequency trading networks.

SGX chief executive Magnus Bocker said despite the Australian government’s rejection of the merger with the ASX earlier this month, the SGX “remains well-positioned to leverage on opportunities within the region’s vibrant and dynamic economies” adding it “will continue to pursue organic as well as other strategic growth opportunities”.

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Posted in: APAC