Profit doubles in Q1 for stock exchange operator Tadawul

Reuters/Faisal Al Nasser

• Tadawul Group profit close to $54m
• Revenue up 73% in Q1 2024
• Earnings per share hit SAR1.68

The operator of the Saudi stock exchange has reported that its profit more than doubled in the first quarter of 2024, with higher revenues across all business segments.

The net earnings of Saudi Tadawul Group Holding Company stood at SAR201.5 million ($53.7 million) in the three months to March 2024, compared to SAR90.8 million a year earlier.

Revenue rose 73 percent year on year to SAR387.6 million thanks to higher trading and post-trade services on the Saudi bourse. 

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Capital markets revenue surged 85 percent to SAR133.5 million in Q1 2024. Revenue from the data and technology services segment rose 50 percent year on year to SAR47 million. Revenue in the post-trade segment grew 72 percent annually to SAR207 million, driven by a 113 percent increase in trading values.

However, expenditure jumped 22 percent to SAR195 million after the consolidation of Direct Financial Network Company and the accompanying rise in workforce costs.

Tadawul Advanced Solutions Company (Wamid), a wholly owned subsidiary of the group, acquired a 51 percent stake in Direct Financial Network last May.

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“The appeal of the Saudi capital market remains strong, with increased participation from both domestic and international investors seeking opportunities for growth and diversification,” said Khalid Al Hussan, CEO of Tadawul Group.

Earnings per share jumped 122 percent to SAR1.68 in Q1 2024, compared to SAR0.76 in Q1 2023.

Total shareholders’ equity (after deducting minority equity) stood at SAR3.3 billion by the end of Q1 2024, up from SAR3.2 billion a year earlier.