GMP Capital Trust revenue fell by 43% in the third quarter, “largely reflecting the challenging business environment currently facing all financial services participants,” the company reported Thursday.

The financial services holding company said net income fell to $6.9 million in the quarter ended Sept. 30 down 82% from a year ago, as revenue slumped to $74.8 million.

“During third quarter 2008, the markets experienced extraordinary volatility resulting in the most difficult market conditions we have ever seen, particularly during the month of September,” said GMP CEO Kevin Sullivan, in a release.

“However, unlike most of our North American peer group, we continued to generate positive quarterly earnings during this period,” he added.

While revenue fell 43%, GMP’s expenses were reduced by 20% to $68.6 million.

Annualized return on equity was 10.3%, down from 50%, and distributable cash was calculated at $12.5 million or 19¢ a unit, down 72%, which bulged the payout ratio to 179%.

In October, Toronto-base GMP announced plans to its cut distribution by more than half. It also announced that it let go 37 support staff to reduce costs, and cut some senior employees’ pay by 10%. Discretionary spending was also reduced.

The monthly distribution was cut to 5¢ a unit, from 10.42¢ a unit.

GMP Capital Trust carries on business through investment dealer GMP Securities L.P., Griffiths McBurney Corp., GMP Securities Europe LLP, GMP Private Client L.P., EdgeStone Capital Partners, L.P. and GMP Investment Management L.P.

IE