Abu Dhabi-based investment holding firm Multiply Group announces its financial results for the first quarter of 2024. The company's net profit, excluding fair value changes, was Dh393 million, representing 48 per cent growth compared to Dh266 million in the same period last year.
The reported loss of Dh4.2 billion includes over Dh4.6 billion in paper losses from unrealised changes in fair value driven by periodic market fluctuations, which have no implications for the business's operational performance.
In 2022, the group reported paper gains of Dh18.5 billion, which gives fair value gains of Dh13 billion since then.
Group revenue increased by 45 per cent year-on-year to Dh391 million, driven by growth across all verticals and the consolidation of Media 247 and BackLite Media under the Media vertical. Blended gross profit margin remained healthy at 51.1 per cent, reflecting continued profitability across core verticals. Investment and other income was +29 per cent year-on-year at Dh361 million.
Group net profit growth, excluding unrealised fair value changes, was driven by strong vertical performance, at 48 per cent year-on-year blended growth, excluding the Kalyon JV contribution, which was negative Dh13 million on higher deferred tax expense impacted by hyperinflation accounting in Turkey.
In Q1 2024, the group reported an income tax benefit of Dh46 million on the recognition of fair value losses. The balance sheet remains robust, with a cash balance of Dh1.62 billion.
The Group has identified across its portfolio areas of EBITDA uplift worth up to Dh45 million run-rate. Fifty per cent of this will come from revenue synergies, up to 40 per cent through cost optimisation, and up to 10 per cent from Digital Transformation and Artificial Intelligence initiatives that aim to enhance customer acquisition and automate processes.
Under Multiply+, the public market portfolio closed the quarter with a valuation of Dh28 billion, compared to an initial investment of Dh15 billion. Despite market fluctuations affecting the fair value of some assets, notably from the Q1 decline in the share price of TAQA, performance across the portfolio remains strong, as does the underlying long-term potential from targeted investments.
