KUALA LUMPUR (Oct 29): Bursa Malaysia Bhd turned in a flattish third quarter ended Sept 30, 2018 (3QFY18) with net profit slipping 2.7% to RM50.19 million, from RM51.6 million previously, as operating expenses offset revenue growth.

Quarterly revenue fell a marginal 0.3% to RM129.82 million, from RM130.27 million in the same quarter last year.

In an exchange filing today, Bursa Malaysia said save for the rise in segmental profit for its securities market division, other segments such as the derivatives market and exchange holding company divisions reported lower profits.

Staff cost, depreciation and amortisation, and other operating expenses rose 2.7% year-on-year (y-o-y) to RM60.73 million in 3QFY18 from RM59.1 million.

It said the securities market division recorded a 2.5% y-o-y increase in segment profit during the quarter under review, mainly due to higher operating revenue from trading revenue and market data.

"Listing and issuer services revenue decreased by 16.4% to RM14.2 million in 3Q18. The decrease was mainly due to lower listing fees and processing fees earned in 3Q18 from lower number of listing and corporate exercises in 3Q18.

"Trading revenue increased by 8.8% to RM61.2 million in 3Q18. 3Q18 saw a higher average daily trading value for on-market trades and direct business trades of RM2.47 billion compared to RM2.16 billion in 3Q17," it added.

Meanwhile, the derivatives market showed a 15.6% decrease in segment profit on lower operating trading revenue mainly from the lower number of contracts traded for crude palm oil futures, and higher market incentives.

Its exchange holding company recorded a higher segment loss of RM3.6 million in 3QFY18 compared to a segment loss of RM1.9 million in 3QFY17, mainly due to lower rental income earned in 3QFY18, it added.

For the cumulative nine-month period, net profit rose 2.6% y-o-y to RM172.19 million from RM167.77 million, while revenue grew 1.3% y-o-y to RM421.09 million from RM415.63 million.

Bursa Malaysia's chief executive officer Datuk Seri Tajuddin Atan said in a separate statement that the bourse operator is confident the government's emphasis on fiscal and governance reforms as outlined in the 11th Malaysia Plan mid-term review bodes well in the long term for strengthening investor confidence.

"Despite major volatility and declines in emerging market equities against the backdrop of a challenging global environment in 2018, Bursa Malaysia's sustainable growth initiatives implemented over the years continue to show progress," he said.

He added that this has raised the company's standards and strengthened its performance to achieve its highest ever nine-month operating revenue, and highest recorded nine-month average daily trading value for securities market's on-market trades of RM2.6 billion, since listing in 2005.

Securities market velocity stood at 30% in 3QFY18 compared to 26% in 3QFY17.

Total operating revenue for the period stood at RM402.26 million, 2.6% higher compared with RM392.06 million in the same period last year.

Tajuddin said Bursa Malaysia will continue its efforts to digitalise, liberalise the rules framework and broaden the investor base to enhance the breadth and depth of the ecosystem.

At noon break today, shares in Bursa Malaysia fell 11 sen or 1.44% to settle at RM7.54, giving it a market capitalisation of RM6.11 billion.