Dubai-listed financial services company, Shuaa Capital, has posted a loss of 143.9 million dirhams ($39.2 million) for the second quarter of the year, down from the 39.4 million dirhams profit posted the same time last year.
Commenting on the results, the company’s CEO, Fawad Tariq Khan, said it had embarked on a group-wide exercise to streamline business by addressing non-cash expenses and cost optimization measures to position it for profitability.
“Despite the challenges we faced this quarter, our core operating business remained resilient, generating 64 million dirhams in recurring revenue across all units,” he added.
Losses for H1 were heavy, reaching 192.5 million dirhams, against a 68.2 million dirhams profit YoY, according to financial results published to Dubai Financial Market (DFM) today.
Shuaa Capital revealed that non-cash expenses such as mark-to-market of Shuaa managed fund accrued expenses, and accelerated amortization of intangible assets, contributed to results.
Its financial results showed operating income fell to 61.6 million dirhams in Q2 2022, down from 71.6 million dirhams in 2021, and 147.7 million dirhams in H1 2022 compared to 171.1 million dirhams in 2021.
The results also showed operating expenses soaring year-on-year, reaching 214.3 million dirhams in H1 2022, up from 137.8 million dirhams in 2021.
Shuaa Capital said its asset management segment had delivered a “robust” performance with 33 million dirhams in revenue. The investment banking business reported 3 million dirhams in revenue.
