Saudi stock exchange Tadawul sees profit declining 23% as revenue falls

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RIYADH: Saudi Tadawul Group Holding Co., the owner of the Kingdom’s bourse, has posted a 23 percent drop in profit to SR367 million ($98 million) in the first nine months of 2022.

This is down from SR477 million the company made during the same period last year, it said in a bourse filing.

This was coupled with a 7 percent decline in revenue to SR849 million, mainly due to the decrease in trading services and post-trade services.

Higher salaries and employee-related benefits further weighed on profit during the nine-month period, leading to a 14.7 percent year-on-year increase in operating expenses to SR465 million.

Following the announcement, the group saw its share price decline 2.42 percent to reach SR217.60, as of 10:17 a.m Saudi time.

Last week, Tadawul Group witnessed the 39th listing since the beginning of the year, with 18 listing requests approved by the Capital Market Authority through 2022, according to CEO Mohammed al-Rumaih.

This number surpasses the 2021 figure, which saw 21 listings, as well as the number witnessed in 2020, when the market recorded only eight listings, the Saudi stock exchange’s CEO said.

Tadawul is also reported to be working on developing a market marker for the stock exchange.

Tadawul also launched single stock futures contracts earlier this year as its second derivatives product.