KUALA LUMPUR: Bursa Malaysia Bhd expects its revenue trend to continue this year, after recording the highest net profit in five years of RM173.1 million in 2013.
Chief executive officer Datuk Tajuddin Atan said Bursa Malaysia will focus on increasing market capitalisation (cap) and inflows of strong companies, despite forecasting fewer initial public offerings (IPOs) this year.
“If market cap were to increase and the sentiment continues to grow, I would imagine that the revenue, especially on the equity side, will grow,” he said, here, yesterday.
On the derivatives market, Tajuddin said commodities like the crude palm oil (CPO) has shown a steady growth over the years, thereby boosting interest in the FTSE Bursa Malaysia KLCI Futures.
“We anticipate bigger volume from this, which will translate into higher revenue,” he said, adding that Bursa Malaysia is also looking at growing its revenue streams from other products.
Bursa Malaysia managed a total of 18 IPOs in 2013 with a size of RM8.2 billion, compared with 17 IPOs with a size of RM22.9 billion in 2012.
Although IPOs are expected to be fewer this year, Tajuddin said the size would be more significant.
Bursa Malaysia’s earnings last year were 15 per cent higher than RM150.59 million recorded in 2012. This was on the back of revenue rising 5.3 per cent to RM474.99 million from RM424.58 million.
Bursa Malaysia has proposed a dividend of 16 sen a share compared with 13.5 sen a year ago.
Its operating revenue rose 13 per cent to RM439.8 million, while operating expenses were at RM229.4 million at 48 per cent cost-to-income ratio.
“Bursa Malaysia’s average daily trading value for securities market stood at RM2.14 billion, up 28 per cent, while overall market capitalisation as at December 31 was RM1.7 trillion, up 16 per cent.”
In the fourth quarter ended December 31 2013, its earnings slipped 5.3 per cent to RM33.84 million from RM35.76 million a year ago, while revenue rose by 9.3 per cent to RM113.93 million from RM104.23 million a year ago. Earnings per share were 6.4 sen compared with 6.7 sen.