DFM Company posts net profit of Dh 200m during 2015

Dubai Financial Market Company (PJSC) yesterday announced its financial results for the first half of the year ending 30 June 2015, recording a net profit of Dh 200 million, compared to Dh 467.6 million during the corresponding period of 2014, a 57% decrease.

The net profit of the second quarter 2015 reached Dh 132.4 Million, a 48% decrease compared to Q2- 2014 level of Dh 252.5 Million.

The Company recorded a total revenue of Dh 292.6 million in H1-2015 compared to Dh 552.1 million during H1- 2014. The revenue comprised of Dh 259.8 million of operating income and Dh 32.8 million of investment returns. The Company expenses reached Dh 92.5 million compared to Dh 84.5 million recorded during H1-2014. During the second quarter of 2015, the Company's revenue reached Dh 178.1 million compared to Dh 296.5 million in the second quarter of 2014, whilst expenses amounted to Dh 45.7 million in the same period compared to Dh 44 million during Q2- 2014.

It is noteworthy that the DFM trading value decreased 56% to Dh 103 billion during the first six months of this year compared to Dh 237 billion in the corresponding half of last year. Trading commissions represent the main revenue stream of the DFM Company.

Essa Kazim, Chairman of Dubai Financial Market (PJSC) said, "DFM trading activity has relatively improved during the second quarter of the year overcoming the sharp decline that prevailed during the first quarter, which saw trading value down 65% to Dh 38 billion compared to Dh 110 billion during the corresponding quarter of the past year. The first quarter's drop has been triggered by some unfavourable circumstances unrelated to the sound fundamentals of our economy, specifically the sharp fall of oil prices. On the other hand, the 65% increase in the average of daily trading value during the second quarter compared to its predecessor clearly indicates the market's high level of resiliency, its ability to sustain attractiveness of investors and restoring the normal level of activity."

He added, "We are looking forward to see further activity through the remaining period of this year supported by the strong economic indicators, the comprehensive market infrastructure as well as its well-diversified investment opportunities. The DFM has successfully maintained its attractiveness for issuers looking to list as we have welcomed the listing of Damac Properties, the most recent addition to our issuers' list during the first half of the year, which has also seen the resumption of trading on Amlak Finance. We are looking forward to further diversify our listed companies building on the significant listing activity during the second half of last year, which saw the market receiving four new listings from unrepresented sectors in the market including Tourism, Healthcare, Education and Retail. This development further boosts the success of DFM's strategy to achieve the best possible representation of Dubai's economy".

Highlighting some of the first half milestones, Kazim said, "The DFM sustained its development efforts aimed at enhancing market infrastructure according to the international practices. Within this context, DFM has implemented an enhanced Pre-closing session arrangement as well as Trading At Last session (TAL) last May, as part of its pursuit to cope with international practices subsequent to the inclusion of the UAE into the MSCI's Emerging Market category.

Additionally, he continued, the DFM has launched a comprehensive online gateway (eService) that enables investors to accomplish 15 services, representing 73% of DFM investor services efficiently through mobile applications as well as the website, as part of our commitment to provide investors with smart solutions. The investor eServices is one of the main pillars of DFM's "Smart Borse" project, currently underway, in line with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai.

"As part of our constant efforts to further strengthen links between listed companies and international investors through an efficient platform that enables companies to enlighten investors on its latest development and plans for growth, the DFM has organised its International Investor Roadshow in London last April. The event has achieved outstanding success through the participation of international institutions with US$ 3 trillion assets under management globally, as they are increasingly attracted to the sizable opportunities available on our market," Kazim said.

Kazim noted having 58 international institutions, including 26 new institutions, seeking to connect with DFM Company immediately after the event, which applies to other participating companies as well, provides the strongest indication of the greater importance of DFM amongst international investors. We will carry on with our efforts to connect with international investors through roadshows in global financial centres and consider organising similar events in the Far East as part of our quest to attract further liquidity and keep international funds well-informed of DFM opportunities.