(Recasts lead to quarterly figures, adds details)
* Q4 net at HK$300 million vs HK$1.27 billion in Q4 2011
* 2012 net profit HK$4.1 billion vs HK$4.39 billion forecast
* Average daily turnover down 23 percent in 2012
HONG KONG, Feb 27 Hong Kong Exchanges & Clearing
Ltd, the world's biggest exchange operator by market
value, posted a net profit of HK$300 million ($38.67 million)
for the October-December quarter, worse than the HK$1.27 billion
the exchange reported during the same time last year after it
was hit by a fall in trading volumes and higher costs.
For the whole of 2012, HKEx said its net profit fell 20
percent to HK$4.1 billion, according to a statement. The company
had been expected to post a net profit of HK$4.39 billion
according to a Thomson Reuters I/B/E/S survey of 16 analysts.
"Our markets experienced a down year in 2012, both in terms
of funds raised and turnover," HKEx Chief Executive Charles Li
said in a statement. "That was mostly in line with other major
markets around the world."
Average daily turnover - a key determinant of exchange
income - fell 23 percent to HK$53.8 billion in 2012. A lack of
high-profile public offerings in the fourth quarter also hurt
the HKEx's revenues. In 2011 HKEx was the world's IPO leader.
To make up for the slowdown in equities trading, the
exchange has been seeking new growth areas such as commodities
and fixed-income, having paid $2.2 billion for the London Metals
Exchange last year.
The move to diversify pushed up costs, with operating
expenses up 13 percent to about HK$2 billion as the HKEx
embarked on a number of high-profile hires such as its new chief
operating officer, Henry Ingrouille.
The HKEx says it plans to develop Asian time-zone price
discovery and clearing with its LME purchase, which would mark
its most concrete effort yet to increase business from investors
in the region. Other exchange operators in the region have also
been trying to shift away from traditional equity settlements.
Singapore Exchange Ltd said in January its
October-December net profit rose 17 percent, helped by a strong
showing in its derivatives business.
($1 = 7.7585 Hong Kong dollars)
(Reporting by Kelvin Soh; Editing by Matt Driskill)