DFM posts 42.7% decline in profit

Dubai Financial Market Company (DFM) has posted net profit of Dh346.6 million in 2009, a 42.7 per cent decline compared with net profit of Dh605m in 2008.

The Board of Directors proposed a cash dividend of five per cent. The payout works out to Dh397.3m.

Total revenues reached Dh502.9m in 2009, around 50 per cent decline compared to Dh1.01bn in 2008.

The total revenue comprised Dh405.9m operational revenues and Dh97m of investment revenues and others.

Earnings per share stood at Dh0.04 in 2009 compared to Dh0.08 in 2008.

"As trading commissions contribute the majority of our revenue, we have seen a decrease in revenues and net profits in 2009 due to the continued implications of the global financial crisis," said Essa Kazim, Executive Chairman of DFM.

"Nevertheless, DFM was one of the least affected exchanges in relation to trading value decrease in 2009 compared to other regional exchanges. The decline of 43 per cent in trading value led to a relatively similar drop in operating revenue and net profits.

"Consequently, the company is engaged in deploying a series of plans aimed at reinforcing other revenue streams to limit dependence on trading commissions as much as possible," he added.

The DFM's Board of Directors reviewed and approved the annual results yesterday, which will be ratified during the annual general meeting of the company that will be announced later after coordinating with Securities and Commodities Authority, according to a statement.

"Since going public in 2007, DFM showed its undisputed commitment to provide shareholders with the best returns.

"To demonstrate this commitment, the Board of Directors proposed a cash dividend for the third consecutive year despite the lower trading activity and allocation of some of our liquidity to acquire Nasdaq Dubai.

"Undoubtedly, this reaffirms our commitment to shareholders, our confidence in the future of the company, the viability of DFM's business model and ability to diversify revenues to achieve solid results," Kazim said.

The DFM stock closed lower at Dh1.43 losing one fil on the DFM market yesterday. The counter transacted 273 deals of 11.65m shares worth Dh16.75m.

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