Dubai: Network International, the UAE’s home-grown international payments firm reported revenues of $156.4 million for the first-half of this year, up 16.5 per cent compared to the same period last year, driven by a robust recovery across all its markets including its core UAE market.
The company posted a net profit of Dh15 million for the first-half of 2021.
Domestic spending trends however, have not consistently recovered to pre-pandemic levels, which reflects the varying pace of recovery in our merchants sectors, alongside continued competition, but is an area of opportunity to accelerate growth.
It is encouraging to see the business continuing to make strides. We are seeing a recovery from COVID-19, with the majority of KPIs now ahead of pre-pandemic levels, including the signing of new merchant and bank customers. We are particularly focused on accelerating growth in our Merchant Solutions business, which will be supported by a rejuvenated strategic approach and expanded capabilities
The company reported underlying EBITDA (earnings before interest, taxes, depreciation, and amortization) was $60.4 million in H1-2021, up 17.2 per cent compared to the same period last year. The company’s underlying free cash flow increased 16.4 per cent to $21.1 million compared to the same period last year.
Saudi Arabia market entry
Network International’s market entry into Saudi Arabia is now underway with live operations likely to be ahead of schedule. Digital payments remain at a relatively low penetration in the Kingdom, representing only about 18 per cent of total consumer and commercial payment transactions in 2020, providing significant upside potential as it moves towards reaching its goal of 70 per cent digital payment participation and laid out in its 2030 Vision.
The company will commence services in 2022 with Issuer solutions card processing and Merchant Solutions acquirer processing, which will be followed in the medium term with broader value-added services.
Network International expects to deploy a total capital investment of under about $10 million, and following services commencing with customers in 2022. It projects revenues building up to about $50 million over a five year period.