Saudi stock operator profit rises 56% on strong revenue

Saudi Tadawul Group, the kingdom’s stock exchange operator, reported a 56 percent surge in second-quarter profit on higher trading activity.

Net profit after zakat – the obligatory charity donation – reached SAR164 million ($44 million) in the April to June period, compared to SAR105 million a year earlier.

Operating revenues reached SAR354 million, an increase of 32 percent over the year amid a rise in trading and post-trade services revenues.

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Trading value rose 38 percent, while revenues from non-trading linked services jumped 26 percent year on year.

Operating expenditures reached SAR208, rising 24 percent, due to costs related to the acquisition of a 51 percent stake in Direct Financial Network Company, higher workforce costs and an increase in depreciation and amortisation costs.

Net profit after zakat for the first half of 2024 stood at SAR365 million, jumping 86 percent, compared to SAR196 million a year ago.  

The company reported an operating revenue of SAR741 million for the first six months, rising 50 percent year on year.

“The successful completion of the strategic acquisition of DME Holdings exemplifies our strategic diversification,” said Khalid Al-Hussan, CEO of Saudi Tadawul Group.

It supports the company’s strategic move towards leveraging the Middle East’s geographic proximity to both key commodity production hubs and end markets, he added.

In January Tadawul Group purchased a 33 percent stake in the parent company of Dubai Mercantile Exchange for SAR107 million.