Hong Kong Exchange (HKEx) has submitted the unaudited consolidated results of the Group for the six months ended June 30, 2016.
- Revenue and other income for the six months ended June 30, 2016 (1H 2016) was 18% lower than the six months ended June 30, 2015 (1H 2015). The significant drivers of the Group’s revenue during the period were:
– Subdued activity on the Cash Market in Hong Kong and commodities trading on the LME.
– Increased trading of derivatives contracts on the Futures Exchange, which reached a half-yearly record high in 1H 2016.
- Operating expenses overall increased by 7% against 1H 2015. However, excluding the effect of a non-recurring recovery of $77 million from the liquidators of Lehman Brothers Securities Asia Limited in 1H 2015, core operating expenses increased by only 2% compared to the prior year.
- The EBITDA margin of 70% for 1H 2016 was 7% lower than 1H 2015 reflecting the decline of trading income as compared to the prior period.
- Profit attributable to shareholders decreased by 27% against 1H 2015 where exceptionally high trading income delivered record high profits for the Group. Nevertheless, notwithstanding difficult trading conditions, the 1H 2016 profit attributable to shareholders compares well with pre 2015 results and was 26% higher than the equivalent period in 2014.
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