DFM net profit for Q2 drops 46pc
Dubai, July 28, 2011
Dubai Financial Market (DFM) has recorded a net profit of Dh14.71 million ($4 million) for the second quarter of the year, marking a 46 per cent decrease compared to the same period of 2010, and a 600 per cent rise against the first quarter.
The Company recorded total revenue of Dh64.59 million in the second quarter compared to Dh69.09 million during the same period last year.
The second quarter of 2011 revenues comprised of Dh50 million of operating income and Dh14.59 million of investment returns.
DFM Company expenses reached Dh49.88 million compared to Dh41.87 million recorded during the second quarter of 2010.
“DFM Company has started to realize the benefits of its ambitious strategy to diversify revenue streams and downscale reliance on trading commissions as the main source of income, which we initiated early this year,” said Abdul Jalil Yousef Darwish, chairman of DFM.
“The positive reflections of this strategy will be clearly recognized by our shareholders as it gains momentum in the future. The Q2-2011 financial indicators reinforce our unequivocal belief in the appropriateness of DFM’s direction and that the new strategy has placed us on the right track towards a new era of growth and prosperity.”
Essa Abdul Fattah Kazim, managing director and CEO of DFM, said: “The flow of revenues from listing fees, sale of market data and online advertising opportunities on DFM website have helped the company reach a greater balance between trading commissions and other revenue sources.”
“Consequently, the trading commissions’ contribution to our revenue has dropped from 66 per cent during H1-2010 to 45 per cent during H1-2011.”
“These new streams contributed 3.4 per cent of DFM Company’s revenue in H1-2011, and this drive will further materialize in the future with the further implementation of the diversification strategy. Undoubtedly, seeing our strategy come to fruition within a few months of implementation, allows us to look forward in confidence and optimism,” Kazim concluded.
DFM operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market. – TradeArabia News Service