Payments processor Network International swung to a first-half loss as a double-digit drop in revenue due to the Covid-19 pandemic dented profitability.
The Dubai-based company's net loss from continuing operations for the six months ending June 30 fell to $150,000 (Dh550,500), compared to a profit of $15.8m in the same period last year. Revenue for the reporting period dropped 12 per cent to $134.2 million, it said in a statement on Tuesday.
Network International’s Middle East revenue slumped 15.3 per cent year-on-year, while its Africa revenue dropped 10.5 per cent. The company attributed the drop in earnings to Covid-19-related movement restrictions, and the associated reductions in domestic and tourism-related consumer spending throughout its primary markets.
Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) at the end of June declined 31 per cent to $52.7m from a year earlier. Its underlying Ebitda margin – excluding share of an associate – came in at 36.2 per cent, which reflects revenue reduction and largely fixed cost base, the company said.
Although the pandemic has and will continue to “impact financial performance in the short term, we have a strong balance sheet with significant liquidity”, Simon Haslam, chief executive of Network International, said.
“We are very pleased with the recent improvement in trading momentum during July, although it is still early in the second half and seasonally this is always a lower revenue month, so our overall outlook for 2020 remains unchanged.”
In April, the company said it is halting capital expenditure in order to conserve cash amid the pandemic. It paused $40m of expenditure earmarked for the separation of shared services with Emirates NBD, and its entry to the Saudi Arabian market.
The company has also taken “prudent measure to protect” its cash flows. While around two-thirds of the company’s operational expenditure is fixed, it is enforcing a hiring freeze and cutting discretionary spending among other measures, it said in a statement at the time.
Companies across the globe are cutting costs to offset the impact of the coronavirus-induced economic slowdown. From global banks to airlines and oil and gas firms, major corporations have suspended expansion plans as they look to bolster cash reserves during the crisis.
Network International, however, said it has seen a significant growth in online payments during the first six months of the year. E-commerce volumes - excluding government and airlines sectors - climbed 45 per cent on annual basis in the second quarter of the year, with growth rates in July touching 61 per cent, it said on Tuesday.
The London-listed company in July said it has signed an agreement to acquire DPO Group, an online commerce platform in Africa, for approximately $288m.
“Our strategic approach remains consistent and we have ensured we remain focused on pursuing the numerous opportunities presented by our markets,” Mr Haslam said on Tuesday.
The proposed acquisition of DPO will widen the company’s capabilities across online and mobile money payments as it brings direct merchant relationships to the business, he said.
“We also have numerous opportunities remaining to pursue, whether that be our market entry to Saudi Arabia, our strategic partnership with Mastercard or discussions with banks around substantial outsourcing contracts,” Mr Haslam added.
Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
UAE currency: the story behind the money in your pockets
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Killing of Qassem Suleimani
Specs
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Engine: 3.0-litre six-cylinder turbo
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Transmission: Eight-speed auto
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UAE currency: the story behind the money in your pockets
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Killing of Qassem Suleimani
AUSTRALIA SQUAD
Steve Smith (capt), David Warner, Cameron Bancroft, Jackson Bird, Pat Cummins, Peter Handscomb, Josh Hazlewood, Usman Khawaja, Nathan Lyon, Shaun Marsh, Tim Paine, Chadd Sayers, Mitchell Starc.
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
The five pillars of Islam
KILLING OF QASSEM SULEIMANI
The biog
Occupation: Key marker and auto electrician
Hometown: Ghazala, Syria
Date of arrival in Abu Dhabi: May 15, 1978
Family: 11 siblings, a wife, three sons and one daughter
Favourite place in UAE: Abu Dhabi
Favourite hobby: I like to do a mix of things, like listening to poetry for example.
Favourite Syrian artist: Sabah Fakhri, a tenor from Aleppo
Favourite food: fresh fish
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
RESULT
Manchester United 2 Burnley 2
Man United: Lingard (53', 90' 1)
Burnley: Barnes (3'), Defour (36')
Man of the Match: Jesse Lingard (Manchester United)
UAE currency: the story behind the money in your pockets
MATCH INFO
Euro 2020 qualifier
Croatia v Hungary, Thursday, 10.45pm, UAE
TV: Match on BeIN Sports
'Panga'
Directed by Ashwiny Iyer Tiwari
Starring Kangana Ranaut, Richa Chadha, Jassie Gill, Yagya Bhasin, Neena Gupta
Rating: 3.5/5
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Killing of Qassem Suleimani
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
Studying addiction
This month, Dubai Medical College launched the Middle East’s first master's programme in addiction science.
Together with the Erada Centre for Treatment and Rehabilitation, the college offers a two-year master’s course as well as a one-year diploma in the same subject.
The move was announced earlier this year and is part of a new drive to combat drug abuse and increase the region’s capacity for treating drug addiction.
Company%20profile
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UAE currency: the story behind the money in your pockets
