Dubai: GFH Financial Group said on Wednesday its three month net profit fell 43 per cent despite rising revenues.
The company reported consolidated net profit of $20.7 million (Dh76.14 million), compared with $36.89 million in the first quarter of 2018. The firm reported a 6.47 per cent increase in revenues, which reached $70.12 million versus $65.86 million in the first quarter of 2018. This underscores GFH’s continued success in implementing its strategy, which remains highly focused on diversifying and enhancing revenue streams and income generation across its core business activities.
Hisham Alrayes, Group CEO of GFH, said: “During the first quarter, we have been able to exit part of our proprietary investments to a strategic partner and took ownership of the Villamar Hotel in the Bahrain Financial Harbour. This will allow us to complete the project faster and achieve higher returns for our shareholders. We have also launched our Britus $200 million education platform during the quarter and have been able to sign to acquire six new K-12 private schools in the region. We believe education is a highly specialised investment line and have plans to build on our track-record and portfolio in this sector. Treasury activities have also been increasing. With momentum from the fourth quarter of 2018 and further gains in the first quarter of 2019, we see this as an important recurring business line for GFH going forward.”
Total assets of the Group increased from $4.99 billion at year end of 2018 to $5.91 billion as at 31 March 2019, an increase of 18.4 per cent.
Commenting on the results, Jassim Al Seddiqi, Chairman of GFH, said: “GFH continues to focus on and invest in diversifying our business and investment portfolio to deliver steady revenue generation through varied business lines.
Notwithstanding the sizeable investments that we have made into further developing the business in the first quarter of 2019 we have delivered sound performance, that we expect to be further enhanced in the forthcoming periods of 2019 as we build on the momentum we are seeing across our business. I would like to thank our shareholders for their support and look forward to a successful year to come.”