PHOTO
Spending by local consumers and international visitors in the UAE surged last year, driven by strong sentiment in the economy and rapid tourism growth, Network International said on Thursday.
The payment solutions provider reported double-digit growth in its revenues and net profits for the year ended 31 December 2022, which the company attributed to high spending in the UAE, as well as strong economic growth across the markets it operates in.
Total net profit for the year reached $80.1 million, up by 41.6% from the previous year, while revenue for the same period reached 438.4 million, up by 24.5 from 12 months earlier.
The positive results were due to strong economic growth in Middle East markets, Network International said, adding that continued acceleration towards digital payments has also supported its business.
Underlying EBITDA rose to $178.6 million, supporting margin expansion of 240bps to 40.7%, reflecting the company’s largely fixed cost base.
Increase in consumer spending
One of the key drivers behind the positive results is the company’s merchant services business, which posted an overall revenue of $183 million, up by 41.4%.
The segment recorded a 28.9% year-on-year (YoY) increase in total processed volume (TPV) for the Middle East, primarily consisting of the UAE market.
Domestic TPV went up 20%, driven by strong consumer confidence, as the UAE economy remains robust despite global challenges, Network International said.
International TPV also surged 64%, driven by rapid tourism growth in the UAE after hosting several landmark events in 2022.
The number of international visitors in Dubai nearly doubled to 14.36 million in 2022, according to Dubai’s Department of Economy and Tourism (DET).
“We accelerated revenue growth [in 2022], having also achieved margin expansion while investing in new opportunities,” said Nandan Mer, CEO of Network International.
“We delivered several critical initiatives, including our market entry to Saudi Arabia, merchant payment services in Egypt and the launch of commercial payment services,” Mer said.
The company said it retains a positive outlook for the year with its core markets rapidly transitioning towards digital payments.
“The company expects revenue growth in the high teens for 2023 in constant currency, with EBITDA margins slightly ahead of 2022,” the company said.
(Reporting by Cleofe Maceda; editing by Daniel Luiz)
