Shares in Network International Holdings PLC (LSE:NETW) jumped after the digital commerce firm said it will return up to US$100mln to shareholders via a share buyback after bumper interim results.
The Dubai-based company will buy back up to US$50mln worth of shares between 15 August 2022 and 17 February 2023, with a further tranche of up to US$50mln being launched following completion of the initial programme.
In a separate earnings release, the FTSE 250 company reported 31% growth in revenue to US$205mln for the six months to 30 June 2022, boosted by the acceleration of digital payments growth and reflecting growth across all regions and business lines.
Underlying profit (EBITDA) jumped 26.2% to US$76.2mln from US$60.3mln in the first half of 2021. EBITDA margin was 37.2%, a rise of 190 basis points.
Net profit more than doubled to US$32mln from US$15mln.
Underlying free cash flow soared 90% to US$40mln.
The company reaffirmed its guidance for 2022 revenue growth in the range of 27%-29% and “modest” expansion in EBITDA margin.
"We are encouraged by the continued progress of our growth strategy, with another strong trading period delivering 31% y/y revenue growth,” commented chief executive officer Nandan Mer.
“This is supported by the acceleration of digital payments growth across our markets, successful strategic execution and share gains in our home market of the UAE.”
Mer said the entry into the Saudi Arabian market is progressing well, with the company having recently secured a second new customer this year.
“Overall, our performance in the first half underpins our outlook and guidance for the year ahead, which is reconfirmed. Whilst we remain conscious of rising global macroeconomic and inflationary pressures, we continue to see steady trading in our major markets," the CEO said.
Shares climbed 11.29% to 222.80p in midmorning trade.