Dividend from SGX Increases

Singapore Exchange Limited, or SGX for short, released its Financial Year 2013 (FY 2013) on yesterday after market close.

The company saw its revenue increase 10% at $715.1 million from $647.9 million the previous year. This was mainly due to a 23% increase in Derivatives revenue and a 9% increase in Securities revenue. The net profit was up 15% to $335.9 million from $291.8 million in FY2012. The fully diluted earnings per share came up to be 31.32 cents, up 15% from the previous year. The net profit margin increased 2 percentage points from FY2012 to 46.6%.

SGX has a clean balance sheet with zero debt and it sits on $763 million of cash. The total equity was $888.6 million, as of 30 June 2013. The return on equity was at 39%, up 3.8 percentage points from the previous year.

Cash flow generated from operations was $418.8 million and the capital expenditure was at $27.6 million. This translates to a free cash flow of $391.2 million.

The proposed final dividends increased to 16 cents per share in FY 2013 from 15 cents per share in FY 2012. The total dividends also increased to 28 cents per share this year from 27 cents per share the previous year. The dividend payout ratio is at 0.89.

Mr Magnus Böcker, SGX CEO, said, “We are pleased to report a net profit of $336 million and underlying profit of $351 million, both up 15% over the previous year. This is our best performance since FY2008. Our continuing investments in new products and wider distribution enabled us to benefit from increased market activities. Securities total traded value increased 10% to $363 billion. Our Derivatives market continued to deliver growth with a number of records including total traded volumes of 101 million contracts, up 32% year-on-year.”

The trailing PE for SGX is at 24.3 and the dividend yield is 3.68%, at the time of writing.

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