Dubai Financial Market Company (PJSC) recorded a net profit of AED 14.71 million in the second quarter of the year ending June 30th, 2011, a 46% decrease compared to the corresponding quarter of 2010, and a 600% increase compared to the first quarter of 2011.
DFM, in an emailed press release on its financial results for the Q2-2011, said it recorded total revenue of AED 64.59 million in Q2-11 compared to AED 69.09 million during Q2- 2010. The second quarter of 2011 revenues comprised of AED 50 million of operating income and AED 14.59 million of investment returns. DFM Company expenses reached AED 49.88m compared to AED 41.87 million recorded during Q2-2010. Noting that DFM operating expenses in Q2-2010 didn’t fully include Nasdaq Dubai’s expenses.
It is noteworthy that DFM trading value has relatively improved to AED 11.5 billion during the second quarter of 2011 compared to AED 10.9 billion in the corresponding period of 2010, an increase of 5.2%.
“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. 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,” Abdul Jalil Yousef Darwish, Chairman of Dubai Financial Market (PJSC), 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,” Essa Abdul Fattah Kazim, Managing Director and CEO of Dubai Financial Market (PJSC), said.
“Consequently, the trading commissions’ contribution to our revenue has dropped from 66% during H1-2010 to 45% during H1-2011. These new streams contributed 3.4% 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,” he added.
