PSE profit dips on higher expenses

The Philippine Stock Exchange (PSE) reported that its net income declined by 7.39 percent to R345.15 million in the first half of 2017 from the R372.7 million earned in the same period last year due to higher expenses and lower non-operating income.

In a disclosure, the PSE said attributable net income fell 26 percent to R220.55 million from R299.03 million in the first semester last year.

Operating revenues increased by 18.14 percent to R662.53 million in the first half this year from R560.81 million in the year ago period.

This is due to higher listing related fees by 37.15 percent or R80.60 million and tradingrelated fees by 12.23 percent or R17.84 million coupled with 6.67 percent or R11.10 million higher service fees during the period.

However, the decline in other income by 50.42 percent to R77.54 million from R156.57 million and a 10.88 percent rise in total expenses to R301.21 million, and 28.62 percent higher provision for income tax amounting to R93.71 million significantly reduced the increase in operating revenues; thus resulting in lower net income after tax.

Of the R301.21-million total expenses (cost of services and administrative expenses), 43.79 percent or R131.90 million represented cost of services consisting of expenses directly related to the core operations of the PSE.

This included compensation and other related staff costs, depreciation, office expenses, communications, and repairs and maintenance.

This was higher by 16.34 percent or R18.53 million from last year’s R113.37 million primarily because of the R13.16 million and R3.42-million increase in compensation and other related staff costs and repairs and maintenance, respectively.