The Saudi Tadawul Group Holding Co, the owner of the kingdom’s bourse, has seen its second-quarter (Q2) net profit after zakat drop 24% to SR137.7 million ($36.7 million) from SR181.1 million in Q2 2021.

 

Operating revenue decreased 4.9% YoY reaching SR298.1 million in Q2 2022 compared to SR313.5 million in Q2 2021, predominantly due to the decrease in trading services driven by normalisation of trading values which contracted by 21.6%.

 

Operating expenditures increased 16.6% YoY reaching SR160.6 million in Q2 2022 compared to SR137.7 million in Q2 2021, mainly due to the increase in the salaries and related benefits, the largest cost item.

 

EBITDA decreases 18.8pc

EBITDA decreased 18.8% YoY reaching SR155.3 million in Q2 2022 compared to SR191.3 million in Q2 2021, due to the decrease in the group’s operating revenue against growth in the group’s operating expenditures.

 

Gross profit decreased 14.9% YoY reaching SR196.8 million in Q2 2022 compared to SR231.2 million in Q2 2021, due to the decrease in the group’s operating revenue against growth in the group’s operating expenditures.

 

H1 net drops 23.1pc

The group achieved a net profit after zakat of SR278.3 million in H1 2022, a 23.1% year on year (YoY) decrease from SR362.0 million in H1 2021.

 

Operating revenue decreased 8.3% YoY reaching SR592.1 million in H1 2022 compared to SR645.9 million in H1 2021, predominantly due to the decrease in trading services and post trade services driven by normalisation of trading values which contracted by 21.9%.

 

Operating expenditures increased 9.8% YoY reaching SR300.9 million in H1 2022 compared to SR274.1 million in H1 2021, due to the increase in the salaries and related benefits, the largest cost item.

 

EBITDA decreased 19.7% YoY reaching SR321.5 million in H1 2022 compared to SR400.4 million in H1 2021, due to the decrease in the Group’s operating revenue against growth in the Group’s operating expenditures.

 

H1 gross profit falls

Gross profit decreased 14.5% YoY reaching SR403.0 million in H1 2022 compared to SR471.3 million in H1 2021, due to the decrease in the Group’s operating revenue against growth in the Group’s operating expenditures.

 

Eng Khalid Al Husan, Group Chief Executive Officer at Saudi Tadawul Group said: "Tadawul Group continues to drive forward in achieving ists strategic goals. The group has shown great agility in its business performance, from amending the listing rules to include more provisions related to the mechanism of transitioning from Nomu Parallel market to the Main Market, througnthe rollout of the second Phase of Wamid's co-location service."

 

“Testament to the avid growth and diversification of our market and its attractiveness is the growing number of IPOs during the first half of the year, resulting in 246 listed companies on both the main market and Nomu — the parallel market,” he added.

 

Capital markets segment

The Capital Markets segment’s revenue, which includes trading services and listing fees, decreased 14.2% YoY, reaching SR115.9 million in Q2 2022.

 

Trading services revenue decreased 23.6% YoY reaching SR89.4 million in Q2 2022 compared to SR117.0 million in Q2 2021, driven by normalisation of trading values which contracted by 21.6%.

 

Listing fees revenue increased 46.2% YoY reaching to SR26.5 million in Q2 2022 compared to SR18.1 million in Q2 2021, mainly due to an increase in the number and size of listings.

 

Data & technology services segment

Data and Technology services revenue decreased 6.1% YoY reaching SR22.3 million in Q2 2022 compared to SR23.7 million in Q2 2021 driven mainly by lower revenue from Market Information services.

 

Post-trade segment

Post-trade revenue increased 3.4% YoY reaching SR160.0 million in Q2 2022 compared to SR154.8 million in Q2 2021, mainly driven by the new fees structure of post trade services (Clearing, Settlement and Safekeeping) mitigated by the normalisation of trading values which contracted by 21.6%.-- TradeArabia News Service