Network International earnings grow following IPO

(Sharecast News) - UAE-based payment solutions firm Network International witnessed a 13.9% rise in interim earnings for the six months ended 30 June, putting it on track to meet its full-year guidance.
In the group's first results since its £1.1bn initial public offering in April, Network reported underlying earnings of $76.39m, up from the $67.1m recorded a year earlier.

Network's Underlying EBITDA margin came to 47.2%, which was just ahead of the 47.0% turned in during the previous half.

Revenues rose 12.4% to $152.3m as total processed volumes increased by 10.8% to US$21.5m.

Total transaction numbers increased 11.1% to 367.4m and the number of cards hosted gained 6.3% to 13.5m.

Network saw Middle East revenues, which makes up 73% of its total income, grow 9.3%, while revenue from Africa jumped by 21.6%.

Chief executive Simon Haslam said: "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.

"We expect our performance to accelerate to low-to-mid-teen organic constant currency revenue growth along with further moderate operating leverage over the medium-to-long term, with a number of growth accelerators being pursued that are expected to provide incremental upside in due course."

Elsewhere, Network also struck a commercial deal with Mastercard, which took a 10.0% stake in the company at the IPO.

Haslam told investors the strategic partnership would identify areas where both companies could work together in order to "drive growth in the development of digital payments" in their markets.

As of 0850 BST, Network shares had picked up 1.01% to 601p.