Saudi bourse posts 37% drop in 2013 profit in debut disclosure

Commonly known as Tadawul, the market made a net profit of $40.5m last year after seeing reduced trading volumes

Saudi Stock Exchange, the Middle East's largest bourse that is planning to go public, reported a 37 percent drop in 2013 net profit, its first ever financial disclosure showed on Tuesday.

The exchange, commonly known as Tadawul, made a net profit of SR152 million ($40.5 million) last year. It attributed the decline in earnings to lower revenues from reduced average daily trading volumes.

These fell to SR5.5 billion in 2013, from SR7.7 billion in the year earlier period.

Overall, the bourse's revenue dipped 21.4 percent to SR346 million in 2013.

The exchange said it is committed to the strategy of developing and diversifying its services for an overall boost for trading on the bourse.

Tadawul's chief executive said in May the company would be applying to undertake an initial public offering soon and will look to hire a financial adviser to manage the share sale, without specifying a timetable for the listing.

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