Annual Report 2017

88 Annual Report 2017 * Change in presentation of deferred tax on change in value of available-for-sale of investment Management discussion and analysis Overview The operating results of the SET group for the year ended December 31, 2017 were: (Unit: THB million) For the year ended December 31 2017 2016* Increase /(Decrease) Amount % Operating revenue 5,007 5,099 (92) (1.80) Other income 280 181 99 54.70 Investment income 1,045 767 278 36.25 Operating expenses (3,818) (3,694) 124 3.36 Contributions to The Stock Exchange of Thailand Foundation (Foundation) (221) (401) (180) (44.89) Income tax expense (504) (231) 273 118.18 Revenue over expenses 1,833 1,759 74 4.21 For the year ended December 31, 2017, revenue over expenses amounted to THB 1,833 million and increased by THB 74 million, compared to 2016. The increase was mainly resulted from investment income from the gain on investment both domestic equity funds and foreign funds by THB 278 million, other income from marketing activities by THB 50 million and transfer of rights for building utilization by THB 36 million. Operating revenue dropped by THB 92 million due to the decrease in daily average trading volume of both equity and derivatives for the SET50 Index Futures. Operating expenses increased by THB 124 million as a result of increasing of employee expenses, marketing expenses and technology - related expenses. Contributions to Foundation significantly decreased since reducing contribution rate from 33% to 13% of revenues over expenses before income tax, starting from August 9, 2016. Income tax expense sharply increased due to the fact that SET has to pay income tax effective from August 9, 2016 as announced by the Director-General of the Revenue Department Notification on Income Tax (No. 271) on July 13, 2016 to be company or juristic partnership under section 39 of the Revenue Code. 1. Analysis of operating results 1.1 Operating revenue Operating revenue by segment Operating revenue is classified by business segment as follows: Securities market, Derivatives market, Technology services and Registrar and fund services.