HKEx Quarterly Results For The Nine Months Ended 30 September 2014
The overall growth in revenue and other income reflects increased trading volumes and related revenue as well as growth in all other categories of income. The change against the prior period was partly offset by a one-off gain of $108 million, on the investment in LCH.Clearnet Group Limited, recorded in YTD Q3 2013.
Operating expenses increased by 8 per cent against YTD Q3 2013 mainly due to the higher staff costs on the increased headcount of the LME Group as well as higher legal fees for defending litigation in the United Kingdom and the United States of America. This was partly offset by a recovery of $54 million from the liquidators of Lehman Brothers Securities Asia Limited (LBSA) in May 2014.
EBITDA increased by 8 per cent compared to YTD Q3 2013. The overall EBITDA margin remained stable at 69 per cent, marginally higher than the 68 per cent achieved for the year ended 31 December 2013.
Profit attributable to shareholders increased by 4 per cent ($126 million) to $3,654 million as higher EBITDA was partly offset by an increase in depreciation and amortisation and taxation. The increase in depreciation and amortisation was principally attributable to the Hong Kong data centre at Tseung Kwan O, the final phase of which was completed in late 2013 as well as the roll-out of various new technology systems and upgrades. Taxation increased relative to the prior period due to a one-off deferred tax credit of $108 million in YTD Q3 2013 arising from a reduction of the corporate tax rate in the United Kingdom.
Profit attributable to shareholders for the three months ended 30 September 2014 (Q3 2014) was 8 per cent higher than the previous quarter (Q2 2014). The increase in trading and clearing revenue due to higher trading volumes in Q3 2014 was partly offset by a drop in scrip fee income, due to seasonal fluctuations and the recovery from the liquidators of LBSA in Q2 2014.