PSE net income declines by 40% in Q1

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THE Philippine Stock Exchange, Inc. reported lower profits for the first quarter of 2018. — PHILIPPINE STAR/KRIZ-JOHN ROSALES

THE Philippine Stock Exchange, Inc. (PSE)’s net income fell by 40% in the January to March period, due to lower listing-related fees and higher expenses after its transfer to Bonifacio Global City (BGC).

In a regulatory filing, the bourse operator said net income dropped to P93.85 million in the first quarter of the year, from P155.53 million it generated in the same period in 2017.

Operating revenues went down 4.2% to P298.44 million, as the PSE managed to temper the slowdown in listing-related fees with higher trading-related and service fees.

Listing-related fees dropped by 36.3% to P26.44 million for the quarter, which came from eight follow-on offerings (FOOs) conducted from January to March. The PSE noted that these issuances had lower aggregate value compared to combination of one initial public offering and six FOOs in the same period last year.

Meanwhile, higher trading volume for the period prompted a 40% increase in trading-related fees. The PSE said daily value turnover averaged at around P8.68 billion this quarter, versus P6.82 billion in the same period last year.

The PSE also incurred 21% higher expenses to P162.48 million primarily because of its transfer to its new office building in BGC, Taguig City. It noted that occupancy costs, which account for around 15% of its total expenses, jumped by 103% due to an increase in dues for its BGC office given the higher rates in the area and bigger office spaces.

Shares in PSE lost 80 centavos or 0.38% to close at P209.20 each on Thursday. — Arra B. Francia