THE Philippine Stock Exchange, Inc. reported its net income declined by 9% in the second quarter, despite higher operating revenues.
In a regulatory filing, the PSE reported a net income of P189.6 million for the April to June period, lower than the P207.97 million it generated in the same period last year.
This pulled the bourse operator’s earnings 7% lower in the first half of the year to P345.15 million, against the P372.69 million it posted in the same period last year.
Revenues rose 17% to P350.98 million during the second quarter, from P298.73 million a year ago. On the other hand, expenses jumped 19% to P167.72 million for April to June.
The PSE’s other income plunged 41% to P52.94 million during the April to June period, from P89.7 million during the same period last year.
For the first half, PSE said its revenues climbed 18% to P662.53 million, boosted by higher listing-related and trading-related fees. However, other income dropped 50% to P77.54 million.
The PSE raised P106.74 billion in capital in the first half, 92% higher than the P55.59 billion in the same period last year. There were three initial public offerings this year, namely Wilcon Depot, Inc., Eagle Cement Corp., and Cebu Landmasters, Inc., and 12 additional/follow-on offerings.
Despite the lower profits for the first six months of the year, PSE is still targeting to book a net income of P800 million for full year 2017.
With no major IPOs in the pipeline, the bourse is looking at tapping small to medium enterprises (SMEs) to file for listing.
“Basically we’re going to focus on getting more SMEs listed. We’re integrating a group within the PSE to engage in a handholding program for industries,” PSE president Ramon S. Monzon said in a press briefing late Wednesday.
Mr. Monzon added that they may tap the GoNegosyo group to help them identify companies that are eligible for listing.
Shares in PSE rose by P2 or 0.84% to close at P241 apiece on Wednesday. — A. B. Francia
