Published On: Thu, May 8th, 2014

HKEx First Quarter Results 2014

Charles Li CEO HKEx

Charles Li CEO HKEx

The results of the Group for the three months ended 31 March 2014 (Q1 2014) showed a marked improvement over the immediately previous quarter (Q4 2013) reflecting improved market activity. Revenue and other income was up by 9 per cent and profit attributable to shareholders up by 15 per cent.

Against the quarter ended 31 March 2013 (Q1 2013), revenue and other income increased by 5 percent or $113 million to reach $2,335 million. The higher income reflects increased fees from commodities trading, additional listing fees, higher brokerage fees on initial public offering allotments, and an increase in clearing fees. This was partly offset by comparatively lower investment income as a non-recurring fair value gain of $107 million was recorded in Q1 2013 on the investment in LCH.Clearnet Group Limited.

Operating expenses increased by 10 per cent against Q1 2013 due mainly to higher staff costs, attributable to the increased headcount of the LME Group and annual payroll adjustments, and higher legal fees.

EBITDA increased by 3 per cent over Q1 2013. The overall EBITDA margin declined by 1 percent, to 69 per cent,against Q1 2013 but improved by 4 percent over the immediately prior quarter.

Profit attributable to shareholders increased by 2 per cent or $20 million to $1,178 million as higher EBITDA was partly offset by an increase in depreciation and amortisation. This is principally attributable to higher depreciation of the Hong Kong data centre at Tseung Kwan O, following completion of the final phase of construction in December 2013, and amortisation of new systems rolled out in Q4 2013 eg, HKEx Orion Market Data Platform, the clearing system of OTC Clearing Hong Kong Limited and the Genium system for the derivatives market.

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