(Correcting overall first-quarter Ebitda figure in par 7 to HK$1.897 billion. Profit attributable to shareholders was HK1.432 billion)
Singapore 11/05/2016 - Hong Kong Exchanges and Clearing (HKEX) posted Ebitda of HK$248 million ($32 million) for its commodities business in January-March, a 23-percent decline from the same quarter of last year, because of drops in trading fees and volume at the London Metal Exchange.
Revenue from trading fees and tariffs in its commodities segment fell 12 percent year-on-year to HK$323 million in the first three months of the year due to incentive rebates introduced in the third quarter of 2015 and fewer trading days in the first quarter of this year, HKEX said in its first quarter financial results on Wednesday.
Average daily volume of metals contracts traded on the LME also slipped nine percent year-on-year to 636,518 lots during the period. The decline in traded volume reflected unfavourable global macroeconomic environment and depressed commodity prices, HKEX said.
Total revenue from its commodities business fell nine percent year-on-year to HK$405 million in the first quarter.
Operating expenses in the segment increased 26 percent year-on-year to HK$157 million due to annual payroll adjustments, increased headcount and legal and professional fees for strategic initiatives during the quarter.
The exchange registered overall Ebitda of HK$1.897 billion in the first quarter, down nine percent from the same quarter of last year.
HKEX continues to explore the possibility of establishing a commodity trading platform in China supported by warehousing and financing facilities. Progress has been made during the quarter on developing business models, technical and human resource requirements, the exchange said.
HKEX is embarking on an ambitious plan to build a China mainland spot commodities trading platform and a London-Hong Kong connect that can attract more Asian financial investors to trade on the LME. This is part of its 2016-2018 strategic plan released in January this year.
(Editing by Mark Shaw)