Tadawul Group 9-month net profit falls 19% to SAR 298.3 mln; Q3 at SAR 102.3 mln

Saudi Tadawul Group Holding Co. (Tadawul Group) reported a net profit of SAR 298.3 million in the first nine months of 2023, down 19% year-on-year (YoY) from SAR 367.4 million in the prior-year period.

This was triggered by a drop of 12.8% YoY in operating revenue to SAR 740.7 million, due to the decrease in trading revenue and post-trade revenue. 

Operating expenses (OpEx) increased in the nine-month period by 13.7% YoY due mainly to the increase in salaries and related benefits driven by the increase in headcount as per the group’s plan as well as the consolidation of Direct Financial Network Company’s financials effective May 7, 2023, following the acquisition of a 51% stake. 

Meanwhile, earnings before interest, tax, depreciation, and amortization (EBITDA) decreased 38.1% YoY due to the decline in the group’s operating revenue against growth in OpEx. 

Net profits for the third quarter of 2023 increased by 15% YoY to SAR 102.3 million from SAR 89.1 million in Q3 2022. 

This was driven by a 7.8% increase in operating revenue to SAR 277.4 million in Q3 from SAR 257.2 million in Q3 2022, which was mainly due to the increase in revenues from the data and technology segment. 

Additionally, non-operating profit also rose in Q3 2023 by 192% to SAR 38.9 million from SAR 13.3 million in Q3 2022, driven by better investment income. 

On a quarterly basis, net earnings declined 2.8% from SAR 105.2 million, as OpEx rose by 19.4% quarter-on-quarter (QoQ). EBITDA dropped 7.7% QoQ to SAR 94.4 million.  

Total shareholders’ equity, after minority interest, reached SAR 3.08 billion by the end of the nine-month period, compared to SAR 3.09 billion in the corresponding period. 

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