Network International tips 2021 earnings to beat market view

(Alliance News) - Network International Holdings PLC on Thursday said its annual earnings will ...

Alliance News 20 January, 2022 | 9:40AM
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(Alliance News) - Network International Holdings PLC on Thursday said its annual earnings will top forecasts, helped by the payment solutions provider's fourth-quarter fortunes topping pre-virus levels.

Shares in the company were 5.4% higher at 294.19 pence each in London on Thursday morning.

Middle East and Africa-focused Network International said revenue in the fourth quarter of 2021 rose 30% annually and was 6% above levels seen two years earlier, so before the onset of the pandemic.

In the third quarter, revenue had risen 19% yearly but was 1% below 2019 levels.

"There is much to feel positive about, having ended the year strongly. We have made excellent progress on successfully refocusing our strategy to drive accelerated growth and innovation," Chief Executive Officer Nandan Mer commented.

"The UAE market has seen a significant rebound in consumer spending and international tourism, and it is encouraging to see our merchant business going from strength-to-strength. This has been supported by record levels of merchant sign-ups, reflecting our continued efforts to enhance our sales strategies, improve merchant on-boarding and continually bring new services to customers."

For the whole of 2021, Network International said it expects to report revenue of USD351 million, which would be ahead of the USD347 million consensus estimate. In 2020, Network International posted revenue of USD284.8 million, so the company expects growth of 23%.

Underlying earnings before interest, tax, depreciation and amortisation are expected to be "slightly ahead of market expectations". Its underlying Ebitda in 2020 amounted to USD112.6 million.

Earnings got a boost from newly acquired payments business DPO Group. It sealed the USD291.3 million purchase of the Nairobi, Kenya-based unit in September.

Meanwhile, the company is on track to enter the Saudi Arabia market during the first quarter. It has signed a processing customer "that is expected to become a key contributor to long term revenues", CEO Mer added.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Network International Holdings PLC 393.60 GBX 0.05 -

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