(MENAFN) Saudi Tadawul Group Holding Co., possessor of the Kingdom’s bourse, has recorded a 23 percent decline in the opening 6 months revenue after a record year of initial public bids.
The group made SR278 million (USD74 million) in revenue throughout the January-June period of this year, decreasing from SR362 million (nearly USD96.4 million) in the same 6 months in 2021, it showed in a bourse filing.
This was joined with an 8.3 percent decrease in profits to SR592 million (nearly USD172 million), mostly because of the decline in trading services and post-trade services.
Greater salaries and employee-associated benefits additional weighed on income throughout the January-June period, causing to a rise of 9.8 percent in expenses to SR301 million (USD81 million).
“One of the risks of becoming a public company is that salaries rise,” Fawaz Al-Fawaz, a Saudi-based independent economist and columnist, informed Arab News.
This is what economists name the “agency problem” — when the bosses become more significant than the owners, using their spot to persuade a “tolerant” board of directors that their roles have suddenly become more important,” Al-Fawaz also stated.
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