Dubai: The Dubai Financial Market (DFM) on Sunday reported a net profit of Dh8 million for 2011, compared Dh89.9 million in 2010.
The DFM Group, which includes its subsidiary Nasdaq Dubai, reported a net loss of Dh6.9 million in 2011 compared to a net profit of Dh78.9 million in 2010.
The group's total revenues declined 32 per cent last year to Dh176.5 million from Dh260.5 million in 2010. The total revenue comprised Dh119.6 million operational revenues and Dh56.9 million in investment revenues and others.
The exchange operator attributed the decline in earnings to considerably lower trade values which declined 54 per cent last year.
DFM said the company is developing new revenue streams from activities such as real-time data selling, listing fees, online advertising and cash dividend distributions on behalf of listed companies.
In 2011, DFM made great strides through several initiatives aimed at improving DFM's performance, efficiency and trading activity, the company said in a statement on Sunday.
Ultimate goal
"The ultimate goal of this strategy is to maximise the shareholders' value by div-ersifying revenue streams through optimally monetising the company's services and resources. Consequently, we have signed agreements with 20 companies in 2011 to sell market data," said Abdul Jalil Yousuf Darwish, DFM Chairman.
Additionally, the exchange expanded cash dividend distribution services on behalf of six public companies through iVestor cards, cheques and bank transfer. Other sources of income included listing fees and online advertising opportunities on DFM website.
DFM's total earnings from these new sources amounted to Dh4.7 million or 2.8 per cent of revenue in 2011.
Eisa Kazim, chairman of Borse Dubai, managing director and CEO of the Dubai Financial Market and director of Nasdaq Dubai, attributed the lower net earnings to the difficult global economic environment and low investor confidence.
"Despite this situation, our development efforts have progressed at an increasingly fast pace over the last couple of years, with the aim of aligning DFM's regulatory structure with international best practices and meeting the growing needs of market participants.
"DFM undertook 18 different development initiatives; most of which have been already implemented," said Kazim.
DFM officials said the exchange in coordination with the Securities and Commodities Authority (SCA) is working on a number of new initiatives including the plan to introduce short selling, market making, trading covered warrants, trading rights issues, stock swap agreements, Direct Market Access Mechanism, and data preparation analysis and publishing system.
