Revenue was up but a large jump in variable compensation costs cut sharply into fourth-quarter earnings for Dundee Wealth Management Inc.

Dundee said variable compensation and other rising costs trimmed profits in the final three months of the year to $5.1 million, down from $14.2 million a year ago.

The profit erosion came despite a 24% rise in revenue to $149.1 million from $120.2 million, the Toronto-based company reported.

Dundee Wealth, owned 67% by Dundee Corp., also said it is increasing its quarterly dividend to 2¢ per share from 1.5¢.

The company, with $42.7 billion under management and administration, said variable compensation in the October-December quarter totalled $55 million, up from $23.8 million a year earlier.

Selling, general and administrative costs increased to $55.6 million from $42.6 million, and trailer fees rose to $11.8 million from $9.9 million.

Operating earnings declined to $13 million from $28.3 million. Net income was five cents a share, down from 23 cents.

Full-year revenue was $603.9 million, up from $351.1 million in 2003, with net earnings of $36.1 million, 35 cents per share, compared with $23.7 million, 36 cents a share.