Saudi Tadawul Group Profit Declines Amid Revenue Dip, Increased Costs

Alanbatnews -

Saudi Tadawul Group, the exchange operator, reported a 36.4% drop in net profit for 2025, amounting to 395.6 million riyals ($105.4 million), compared to 621.8 million riyals ($165.6 million) in the previous year.

The decline was attributed to lower revenue performance and increased operating expenses, which rose by 6.6% to 938.5 million riyals, the group said in a statement on the Saudi Stock Exchange (Tadawul) website. The rise in operating expenses was due to the strategic implementation of the group's future growth plans, resulting in higher system maintenance costs, depreciation, and increased workforce expenses due to employee growth.

Group revenue decreased by 12.8% to 1.26 billion riyals, down from 1.44 billion riyals in 2024. This was primarily due to a decline in trading and post-trading service revenues, stemming from a 30.6% decrease in the average daily traded value of shares. This impact was partially offset by a 7.6% increase in revenues from non-trading related services.

Earnings per share reflected this performance, falling to 3.3 riyals in 2025, compared to 5.18 riyals in the previous year, a decrease of 36.4%.

Gross profit also decreased, reaching 716.3 million riyals in 2025, compared to 911.8 million riyals in the prior year, a decline of 21.4%. Operating profit fell by 43% to 322.7 million riyals, compared to 566.1 million riyals in 2024. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also declined by 32.2% to 438.5 million riyals during the same period.

The group's business segments are organized based on the services provided, including capital markets, technology and data services, and post-trade services.

Revenue from the capital markets sector decreased in 2025 to 373.7 million riyals, a 19% decrease compared to 461.3 million riyals in the previous year. This decline resulted from a 30.6% decrease in the average daily traded value of shares, partially offset by a 13.6% increase in listing service revenues.

In contrast, revenue from the technology and data services sector increased to 248.9 million riyals, a 13.3% increase compared to 219.6 million riyals in the previous year. This was mainly driven by higher hosting service revenues in the data center, in addition to the contribution of revenues from Mubasher Financial Network.

Post-trade services revenue recorded a decrease to 638.7 million riyals, a 16.6% decrease compared to 765.7 million riyals in 2024. This was due to a 30.6% decrease in the average daily traded value of shares, partially offset by a 9.1% increase in registration service revenues.