Riyadh — Saudi Tadawul Group Holding Co., a leading diversified capital markets group in the MENA region, announced its financial results for the first quarter of 2022, underlining its continued commitment to strengthening its global position through several new updates, market launches and investments.
The group achieved a net profit after zakat of SR 140.6 million in the first quarter of 2022, a year-on-year decline of 21.7% from SR 179.6 million in the first quarter of 2021 and an increase of 27. 3% from SR110.5 million in the fourth quarter of 2021, as follows:
Operating revenue decreased by 11.6% year-on-year to SR293.9 million in Q1 2022 from SR332.4 million in Q1 2021, mainly due to a decline in trading and post-trade driven by the normalization of trading volumes which contracted by 22.1%.
Compared to SR257.5 million in the previous quarter, operating income increased by 14.1%, mainly due to an increase in trading and post-trade services driven by a stronger trading environment.
Operating expenses increased by 1.8% year-on-year to SR140.2 million in the first quarter of 2022 from SR137.7 million in the first quarter of 2021, due to an increase in salaries and wages. benefits, the largest cost item driven by an increase in the number of employees.
From SR146.7 million in the previous quarter, operating expenses decreased by 4.4%, due to a reduction in salaries and benefits, the largest cost item.
• EBITDA decreased by 20.4% year-on-year to SR166.4 million in Q1 2022 from SR209.0 million in Q1 2021 due to lower operating revenue from group compared to moderate growth in the group’s operating expenses.
Compared to SR 124.1 million in the previous quarter, EBITDA increased by 34.1%, due to the increase in group operating income and a moderate decline in operating expenses.
• Investment income decreased by 13.0% year-on-year to SR9.9 million in Q1 2022 from SR11.4 million in Q1 2021, which was attributed to lower 9.0% of the size of the investment portfolio.
• Free cash flow decreased by 26.5% year-on-year to SR179.7 million in Q1 2022 from SR244.4 million in Q1 2021, mainly due to lower EBITDA. Compared to SR130.9 million in the previous quarter, Free Cash Flow increased by 37.3%, due to the increase in EBITDA.
Eng. Khalid Al-Hussan, Managing Director of Saudi Tadawul Group, said: “Following our transformational IPO and listing last year, we have been focused on delivering on our strategy and achieving our key strategic objectives. to promote excellent value for investors and foster development. of the Saudi capital market in line with the pillars of the Financial Sector Development Program (FSDP) and the Kingdom’s ambitious Vision 2030.
He added: “During the first quarter, we continued to diversify the group’s services and improve operational efficiency, and we recently announced the launch of various new market infrastructure improvements – the most important of the history of the Saudi capital market – which will not only expand our offerings in line with the expectations of local and international investors, but further solidify our position as one of the largest and most sophisticated stock exchanges in the world.
Eng. Khalid said: “We are in a strong financial position thanks to our advanced and differentiated business model, in addition to our ambitious growth plans and our disciplined capital allocation strategy.
“We are committed to pursuing a strategy of growth and diversification through the development and implementation of new asset classes, products and services, while strengthening interconnectivity with other financial markets in the region and around the world to facilitate capital formation. This in turn should support the group’s commitment to delivering maximum shareholder returns as we strengthen our role as a global capital markets leader and driver of financial markets.
Saudi Tadawul Group continued to strengthen its position as a global capital markets powerhouse with several new market updates, launches and events. This is in line with its strategy to accelerate growth, strengthen operational and financial performance, diversify world-class offerings across solutions and technologies, and expand local, regional and international customer base.
• In March, the group announced its intention to launch on April 3 several new market improvements in its three subsidiaries to develop the post-trade infrastructure. The improvements are the largest in the Kingdom’s capital market history and aim to provide investors with increased investment opportunities and access to a diverse range of financial instruments and new products.
• Saudi exchange: The introduction of more efficient order flow processing by market participants, such as an improved mechanism for short selling activities.
• Muqassa: The extension of clearing services to all negotiable securities, in order to adopt a more comprehensive risk framework and to facilitate the introduction of new products and services for clearing members.
• Edaa: The introduction of a new central securities depository system and post-trade services, in line with international standards, to improve the experience of capital market institutions, custodians, settlement agents and investors.
• Other important updates include the approval of the new fee structure, effective April 3, 2022, for services provided by the Saudi Stock Exchange, Edaa and Muqassa regarding stock buying and selling commissions , units of Real Estate Investment Traded Funds (REITs), exchange-traded funds (ETFs), closed-end funds (CEFs) and tradable rights.
• WAMID has signed Memoranda of Understanding (MoU) and Non-Disclosure Agreements (NDA) with several customers and suppliers to further enhance market knowledge and provide value-added products and services.
• In March, the group also hosted the first Saudi Capital Market Forum 2022, organized under the patronage of Mohammed El-Kuwaiz, chairman of the Capital Market Authority. The event brought together more than 1,500 participants, including issuers, investors, private companies, government entities and financial institutions, to discuss the advancement of the Saudi capital market. —SG