28th Mar 2024 10:38
(Alliance News) - Network International Holdings PLC on Thursday noted a challenging external economic environment but highlighted that the longer-term outlook remains positive.
The Dubai-based provider of payment products and services said pretax profit fell 15% to USD79.0 million in 2023 from USD92.5 million in 2022.
Revenue edged up 13% to USD490.1 million from USD435.5 million.
Selling, operating and other expenses however increased 17% to USD147.5 million from USD125.7 million, while personnel expenses increased 11% to USD144.1 million from USD129.3 million.
Net interest expenses came in 42% higher at USD26.4 million compared to USD18.5 million.
Expected credit losses ballooned to USD8.5 million from USD2.9 million. Further, the company reported a USD6.0 million unrealised foreign exchange loss for 2023, compared to a gain of USD2.6 million in 2023.
The company said that the external economic environment has been challenging across several markets during 2023, with the Middle East & Africa region seeing a "significant reduction in economic growth expectations driven by: higher inflation and interest rates, material currency devaluations of the EGP/USD and Naira/USD and the impact of current conflicts in region".
However, its longer-term outlook remained positive, with digital transaction-related payment volumes in the Middle East & Africa set for high growth of around 10% for 2022 to 2027.
"Key themes in global payments reaffirm our plans to diversify revenues, automate and modernise," Network said.
Network shares were 0.1% lower at 393.60 pence each on Thursday morning in London.
By Tom Budszus, Alliance News slot editor
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