Network International H1 financial results show strong growth
The UAE market leader in the cards industry continues growth momentum as both third-party processing and merchant acquiring businesses continue to grow in the region
Network International, the region’s preferred card payments solutions provider, has announced its mid-year financial results as of June 2008. The figures show revenues of AED 170.2 million- a growth of 45% over the same period last year, resulting in net profits of AED 84.4 million, an increase of 31% over same period in 2007.
Releasing the results, Abdulla Qassem, Chairman, Network International said: “As electronic payments continue to attract more and more business due to their efficient services and advanced security features, the card industry in the region continues to grow across sectors. While Network International is definitely at the forefront of the industry in terms of market share, our results do demonstrate that end-consumers are relying more and more on their credit and debit cards.”
Network International’s two business streams are third-party cards processing and merchant acquiring. Under third-party cards processing, Network International undertakes credit and debit cards processing for banks – from issuing the cards to managing end-consumer relationships, while under merchant acquiring, the company provides end-to-end credit and debit card payment acceptance and processing operations for merchants.
In the first half of 2008, merchant acquiring revenue rose to AED 106.6 million – a 42% increase over same period in 2007. This was primarily due to a 37% increase in total merchant sales volume, which stood at AED 18 billion as of June 2008. Third-party processing revenues also went up to AED 57.4 million during the first half, a growth of 52% over the same period last year.
“The milestones Network International has achieved over the years are clearly demonstrated in our year on year growth, including the present results,” said Ram Chari, General Manager, Network International. “However, the fast changing and challenging nature of our industry demands we keep excelling at what we do. We will continue to innovate and invest to deliver the superior quality that our customers have come to expect from us.”
Several strategic initiatives were also concluded in the first half of 2008. These include a Joint Venture with Oberthur, France, for setting up a world class Cards Personalization Bureau – the first in the Middle East. On the merchant acquiring front, Network International started the acceptance of JCB cards across its POS machines in the second quarter of 2008. First half of 2008 also saw new business wins for the third-party processing business stream with Al Hilal and Al Masraf going live midway through the second quarter.
