UAE's Network Int'l says net income up 5% as payments business grows

UAE-based payment solutions provider delivers 9.3% growth in the Middle East in the first six months of 2019
UAE's Network Int'l says net income up 5% as payments business grows
By Gavin Gibbon
Wed 14 Aug 2019 02:06 PM

Network International Holdings delivered 9.3 percent growth in the Middle East in the first six months of 2019, driven by increased total volumes, transaction growth and diversification provided by new products and services.

The UAE-based payment solutions provider raised $1.4 billion – the biggest listing in Europe this year - from a hugely successful initial public offering (IPO) in April this year.

In its first results since the IPO, the company reported nderlying net income increased by 5.1 percent year-on-year to $43.9 million, driven by EBITDA growth partially offset by a higher depreciation and amortisation charge as recent capex is brought into service.

The group said EBITDA increased by 13.9 percent due to strong revenue growth.

It said the number of cards hosted increased by 6.3 percent to 13.5 million, with transactions rising by more than 11 percent to 367.4 million.

Simon Haslam, chief executive officer, said: “Following our successful listing on the London Stock Exchange in April 2019, I am pleased to report that Network International has delivered a strong first half performance, with revenue and underlying EBITDA growth of 12.4 percent and 13.9 percent, respectively.

"Africa continued its strong growth trajectory with a 21.6 percent increase in revenues on the back of significant volume growth in the number of cards hosted and TPV, complemented by increased cross-sell across the customer base."

Network International also announced a commercial deal with Mastercard, which took a 10 percent stake in the company at the IPO.

Despite profits from continuing operations decreasing by 55.4 percent, due to higher specially disclosed items primarily relating to costs associated with listing including share-based compensation charge, Haslam was confident for the future.

He added: “Looking ahead to the rest of the year, we are well positioned to deliver on the guidance shared at the time of listing and anticipate delivering low double-digit constant currency organic revenue growth while maintaining stable underlying EBITDA margin.”

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