Tadawul Group profits decline 23.9% to SR137.7 mln in Q2‎

Saudi Tadawul Group Holding Company revealed that the net profit after zakat and tax in the second quarter decreased to 137.7 million riyals, compared to 181.1 million riyals in the same quarter of last year, at a rate of 23.9%, this came after today’s announcement of the preliminary financial results for the period ending in 2022. 06-30 (six months).

The operating profit amounted to 137.6 million riyals in the second quarter, compared to 175.6 million riyals in the same quarter of the previous year, a decrease of 21.7%.

The net profit after zakat and tax in the 6-month period amounted to 278.3 million riyals, compared to 362 million riyals in the same period last year, a decrease of 23.12%.

The total shareholders’ equity “without minority rights” amounted to 3.01 billion riyals in the current period, compared to 2.8 billion riyals in the same period last year, an increase of 4.6%.

Earnings per share in the current period reached 2.32 riyals, compared to 3.02 riyals in the same period last year

 The Group achieved a net profit after zakat of SAR 137.7 million in Q2 2022, a 24.0% year on year (YoY) decrease from SAR 181.1 million in Q2 2021, This was mainly driven by the following:

• Operating Revenue decreased 4.9% YoY reaching SAR 298.1 million in Q2 2022 compared to SAR 313.5 million in Q2 2021, predominantly due to the decrease in trading services driven by normalization of trading values which contracted by 21.6%.
• Operating expenditures increased 16.6% YoY reaching SAR 160.6 million in Q2 2022 compared to SAR 137.7 million in Q2 2021, mainly due to the increase in the salaries and related benefits, the largest cost item.
• EBITDA decreased 18.8% YoY reaching SAR 155.3 million in Q2 2022 compared to SAR 191.3 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 SAR 196.8 million in Q2 2022 compared to SAR 231.2 million in Q2 2021, due to the decrease in the Group’s operating revenue against growth in the Group’s operating expenditures.

The Group achieved a net profit after zakat of SAR 137.7 million in Q2 2022, a 2.1% quarter on quarter (QoQ) decrease from SAR 140.6 million in Q1 2022, This was mainly driven by the following:

• Operating expenditures Increased 14.5% QoQ reaching SAR 160.6 million in Q2 2022 compared to SAR 140.2 million in Q1 2022, due to the increase in the salaries and related benefits, the largest cost item.
• EBITDA decreased 6.7% QoQ reaching SAR 155.3 million in Q2 2022 compared to SAR 166.4 million in Q1 2022, due to the increase in the Group’s operating expenditures.
• Gross Profit decreased 4.6% QoQ reaching SAR 196.8 million in Q2 2022 compared to SAR 206.2 million in Q1 2022, due to the increase in the Group’s operating expenditures.

The Group achieved a net profit after zakat of SAR 278.3 million in H1 2022, a 23.1% year on year (YoY) decrease from SAR 362.0 million in H1 2021, This was mainly driven by the following:

• Operating Revenue decreased 8.3% YoY reaching SAR 592.1 million in H1 2022 compared to SAR 645.9 million in H1 2021, predominantly due to the decrease in trading services and post trade services driven by normalization of trading values which contracted by 21.9%

• Operating expenditures increased 9.8% YoY reaching SAR 300.9 million in H1 2022 compared to SAR 274.1 million in H1 2021, due to the increase in the salaries and related benefits, the largest cost item.
• EBITDA decreased 19.7% YoY reaching SAR 321.5 million in H1 2022 compared to SAR 400.4 million in H1 2021, due to the decrease in the Group’s operating revenue against growth in the Group’s operating expenditures.
• Gross Profit decreased 14.5% YoY reaching SAR 403.0 million in H1 2022 compared to SAR 471.3 million in H1 2021, due to the decrease in the Group’s operating revenue against growth in the Group’s operating expenditures.

Additional Information:

The Group is organized into business segments based on services provided. The reportable segments of the Group are as below:

• Capital Markets Segment: The Capital Markets segment’s revenue, which includes trading services and listing fees, decreased 14.2% YoY, reaching SAR 115.9 million in Q2 2022.

Trading services revenue decreased 23.6% YoY reaching SAR 89.4 million in Q2 2022 compared to SAR 117.0 million in Q2 2021, driven by normalization of trading values which contracted by 21.6%

Listing fees revenue increased 46.2% YoY reaching to SAR 26.5 million in Q2 2022 compared to SAR 18.1 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 SAR 22.3 million in Q2 2022 compared to SAR 23.7 million in Q2 2021 driven mainly by lower revenue from Market Information services.
• Post-Trade Segment: Post-trade revenue increased 3.4% YoY reaching SAR 160.0 million in Q2 2022 compared to SAR 154.8 million in Q2 2021, mainly driven by the new fees structure of post trade services (Clearing, Settlement and Safekeeping) mitigated by the normalization of trading values which contracted by 21.6%.