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For the quarter ended 31 March 2006, Bursa Malaysia registered an operating profit of RM20.9 million on the back of operating revenue of RM58.5 million. The operating profit grew by 34% compared to RM15.5 million recorded in the corresponding quarter last year. Operating expenses excluding depreciation and finance costs were 1.2% higher at RM33.6 million in the quarter ended 31 March 2006 from RM33.2 million in the quarter ended 31 March 2005.
Total revenue declined by 3.1% to RM71.3 million from RM73.6 million a year ago. This decline was primarily due to reduction in other income from investment and disposal of fixed assets. Stable revenue comprising depository services, information services, listing fee, broker services and participants’ subscriptions rose slightly to RM18.8 million from RM17.6 million in the same quarter last year. Meanwhile, Bursa Malaysia’s net profit attributable to shareholders was RM22.2 million for the period under review versus net profit of RM24.0 million for the first quarter of 2005.
Trading revenue from the equity and derivatives markets grew by 13.5% to RM38.6 million from RM34.0 million in the first quarter of 2005. Total trading value (on-market and direct business) on Bursa Malaysia Securities was lower at RM58.5 billion (or RM991.3 million daily) compared to RM64.4 billion (or RM1.1 billion daily) during the corresponding quarter last year. On the other hand, there was an improvement in effective gross clearing fee for on-market trades from 0.0255% to 0.0308% which resulted in higher clearing fee revenue from the equities market of RM28.1 million in comparison to RM24.3 million recorded in the first quarter of 2005. In contrast, the number of derivative contracts recorded an improvement with a total of 690,472 contracts traded in the first quarter of this year compared to 645,394 in the previous corresponding period. This resulted in an increase in derivatives trading revenue from RM4.7 million to RM5.5 million.
Bursa Malaysia’s Chief Executive Officer, Yusli Mohamed Yusoff commented, ”Our first quarter 2006 results were solid, driven by strong trading volume and increased investor confidence in our market. Whilst the trading value was lower year-on-year, the daily average trading value for the first quarter this year of RM991.3 million was higher than the 2005 full year daily average trading value of RM813.5 million. We noted improvement in sentiment following the government’s announcement on further developments for the Malaysian capital market, particularly the reintroduction of regulated short selling (RSS) and securities borrowing and lending (SBL).“
Yusli added, “Looking ahead, the exchange is focused on achieving our 2006 objectives of enhancing the quality of the market, growing our investor base and improving operational and financial efficiencies. We are committed to rolling out several products and services such as Single Stock Futures and RSS/SBL aimed at enhancing the market’s attractiveness and boosting investor interest.”
Bursa Malaysia also announced its 2006 headline KPIs as follows:
- Return on Equity (ROE) of 9.1% by end 2006
- Target percentage of 35% domestic retail participation over total turnover value
- Introduction of a combination of 10 products to enhance the attractiveness of the market, such as RSS, SBL, Single Stock Futures and FTSE-Bursa Malaysia Indices.
Yusli said the headline KPIs reflected a balanced approach towards financial and operational efficiency as well as the development of the market. “We felt it was important for us to disclose our KPIs, so that the investing public and our shareholders are clear on how to gauge our progress.”
The presentation of the financial results for the first quarter is also available on Bursa Malaysia’s website (www.bursamalaysia.com).
|
FINANCIAL
RESULTS |
1Q06
(Unaudited) |
1Q05
(Restated) |
|
|
RM‘000 |
RM’000 |
|
Operating
Revenue |
58,524 |
52,659 |
|
Operating
Expenses |
(33,580) |
(33,206) |
|
Operating
EBITDA |
24,944 |
19,453 |
|
Depreciation
& Amortisation |
(3,929) |
(3,875) |
|
EBIT |
21,015 |
15,578 |
|
Finance
Costs |
(124) |
(42) |
|
Operating
Profit |
20,891 |
15,536 |
|
Other Income |
12,726 |
20,919 |
|
Profit
Before Taxation |
33,617 |
36,455 |
|
Taxation |
(10,619) |
(11,448) |
|
Net Profit
for the Period |
22,998 |
25,007 |
|
Minority
Interest |
(804) |
(1,043) |
|
Net
Profit attributable to Shareholders |
22,194 |
23,964 |
Note:
The figures for first quarter 2005 have been restated to reflect the prior year adjustment relating to share based payment under Employee Share Option Scheme (ESOS).
