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BURSA MALAYSIA POSTS RM24.4 MILLION NET PROFIT IN Q1 2005, DRIVEN BY IMPROVED COST EFFICIENCY MEASURES.
BackMay 06, 2005
06 May 2005
BURSA MALAYSIA POSTS RM24.4 MILLION NET PROFIT IN Q1 2005, DRIVEN BY IMPROVED COST EFFICIENCY MEASURES
Bursa Malaysia Berhad ("Bursa Malaysia") today announced its maiden quarterly results for the first quarter of 2005.
For the quarter ended March 31, 2005, Bursa Malaysia registered a net profit of RM24.4 million compared to RM27.0 million in the corresponding quarter last year. Total revenue decreased by 15.9% to RM73.6 million from RM87.5 million in the first quarter of 2004 primarily due to an RM13.6 million reduction in operating revenue. Trading value on Bursa Malaysia Securities Berhad (Bursa Securities) dropped 26.8% to RM64.4 billion from RM 88 billion in the first quarter of last year due to uncertainties in the global environment, such as renewed concerns of rising crude oil prices and higher US interest rates. As a result, trading revenue from the equities market declined from RM41.2 million in the first quarter of 2004 to RM29.0 million in the corresponding quarter this year. Revenue from derivatives trading eased 5.1% from RM5 million in Q1 2004 to RM4.7 million in the same period this year despite a slight 0.4% increase in contracts traded. This was due to the lower profit margins from crude palm oil (CPO) contracts. Stable revenue comprising listing, depository services, information services, broker services and participants' subscription fees rose slightly to RM17.6 million compared to RM17.4 million in the first quarter of last year.
In contrast, total operating expenses were significantly lower in the first quarter of this year at RM36.7 million, a 23.9% decrease from RM48.2 million recorded in the same period last year. This was predominantly due to a 36% reduction in staff costs arising from the Voluntary Separation Scheme implemented last year.
Bursa Malaysia's Chief Executive Officer, Yusli Mohamed Yusoff said, "While the year got off to a relatively slow start in terms of market turnover activity and contribution from trading revenue, we are still confident of meeting our profit forecasts for 2005. By maintaining our cost management strategy we should be able to keep our expenses in check. At the same time, we will continue to aggressively promote the Malaysian capital market and Malaysian companies as a means to attract greater investor interest."
Yusli cited that Bursa will continue to focus on three strategic areas for improving Bursa Malaysia's performance going forward, namely:
- Boosting market liquidity and velocity
- Increasing and improving product offerings and services
- Improving efficiency and achieving economies of scale
He added, "Additionally, the derivatives portion of our Common Trading Platform which will be launched by the end of the second quarter should improve the efficiency of trading and encourage greater participation in our derivatives market."
Financial highlights of Q1 2005 results - January 1 to March 31, 2005
1st Qtr 2005 | 1st Qtr 2004 | Increase (Decrease) | |||
---|---|---|---|---|---|
RM million | RM million | RM million | % | ||
Operating revenue | 52.7 | 66.3 | (13.6) | (20.5) | |
Other income | 20.9 | 21.2 | (0.3) | (1.4) | |
Total revenue | 73.6 | 87.5 | (13.9) | (15.9) | |
Total operating expenses | 36.7 | 48.2 | (11.5) | (23.9) | |
Profit from operations | 36.9 | 39.3 | (2.4) | (6.1) | |
Finance cost | (0.1) | (0.1) | - | - | |
Profit before taxation | 36.8 | 39.2 | (2.4) | (6.1) | |
Taxation | (11.4) | (11.3) | (0.1) | (0.9) | |
Minority interest | (1.0) | (0.9) | (0.1) | (11.1) | |
Net profit for the period | 24.4 | 27.0 | (2.6) | (9.6) |