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Network International Holdings PLC

Network International reports earnings growth in first set of results since bumper IPO

Network International also announced a commercial deal with Mastercard, which took a 10% stake in the company at the IPO.

Network International Holdings PLC -
Mastercard is a cornerstone investor of Network International

Network International Holdings PLC (LON:NETW), the United Arab Emirates-based payment solutions provider that floated on the London Stock Exchange in April, said it was on track to meet its full-year guidance after a 13.9% rise in first-half earnings.

The FTSE 250 company’s shares have been on a strong run since it started trading after raising £1.1bn in the biggest listing in Europe so far this year.

The initial public offering price gave the company a market value of £2.18bn, which has since risen to £2.98bn.

In its first results since the IPO, the group posted underlying earnings (EBITDA) of US$76.4mln for the six months to the end of June, up from US$67.1mln a year ago.  The underlying EBITDA margin was 47.2% after absorbing public company costs, compared to 47.0% last year.

Revenue rose 12.4% to US$152.3mln as total processed volumes advanced 10.8% to US$21.5mln.

The number of transactions increased 11.1% to 367.4mln and the number of cards hosted gained 6.3% to 13.5mln

The Middle East, which makes up 73% of total revenues, delivered growth of 9.3% while revenue from Africa jumped 21.6%.

“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,” said chief executive Simon Haslam.

“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."

Network International also announced a commercial deal with Mastercard, which took a 10% stake in the company at the IPO.

CEO Haslam said the strategic partnership will identify areas where the companies can collaborate to “drive growth in the development of digital payments in the markets we operate in”.

Quick facts: Network International Holdings PLC

Price: £5.97

Market: LSE
Market Cap: £2.99 billion
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