Al Ansari Financial Services, the UAE money exchange and transfer company, reported a 13 per cent decline in second-quarter profit on the back of higher depreciation charge from expanding its branch network and increasing finance costs.
Net profit attributable to the shareholders of the company for the three months to the end of June fell to Dh130 million ($35 million), from about Dh148 million in the same period last year, amid higher finance costs due to interest payments on an Dh300 million term loan, the company said on Thursday in a statement to the Dubai Financial Market, where its shares are traded.
Second-quarter operating income increased 1.2 per cent year-on-year to Dh291 million, mainly driven by strong growth in the bank notes, wage-protection system and other services, while the company recorded a slight decline in the income from its remittance business, it said.
“While our cost base has increased compared to the year ago period, mainly attributed to our aggressive expansion plans, regulatory requirements to achieve Emiratisation targets, and an overall higher operating cost environment … we believe that once … 15 new branches break even, they will contribute towards profitable growth,” Mohammad Bitar, deputy group chief executive of Al Ansari Financial Services, said.
Ansari Financial Services is well funded with ample liquidity to fund growth and as a result the board has approved a dividend payment of Dh600 million ($163 million), said Rashed Al Ansari, group chief executive. The first interim payment is expected in October and the second will be disbursed in April 2024.
Al Ansari Exchange was set up in 1966 and has 231 branches in the UAE, along with operations in Kuwait. It offers exchange services, remittances, savings plans and a system to pay domestic workers.
The UAE is the second largest outward personal remittances market in the world with a total value of $48 billion, according to Edgar, Dunn and Company.
The company has opened 15 new branches in the UAE since the first half of 2022, in line with its expansion plans. As a result, its employee headcount increased 19.2 per cent in the first half of 2023 compared to the same period last year.
Its capital expenditure in the first half of 2023 increased 62 per cent year-on-year to Dh20 million as the group continues to invest in growing its business.
Al Ansari's earnings before interest, taxes, depreciation and amortisation for the April to June period declined 8.3 per cent year-on-year to Dh147 million on the back of higher operating costs, driven predominantly by the group’s expansion, rising costs and lower margins on the remittance business.
The company's free cash flow declined by 9 per cent on an annual basis to Dh137 million, it said.
The company drew $3.45 billion in bids for its initial public offering earlier this year which raised $210 million from the sale of a 10 per cent stake, with the offering oversubscribed 22 times on average.
Al Ansari's net profit attributable to shareholders of the company in the first six months of the year fell to Dh263 million, from over Dh273 million in the corresponding period of 2022, mainly driven by lower remittance margins, higher costs and the increase in financing costs, the company said in the bourse filing.
Ebitda in the first half held steady at Dh299 million, despite an increase in expenses during the period related to the opening of the new branches and a “rising cost environment,” it said.
However, first-half operating income increased 5 per cent year-on-year to Dh578 million driven by a 10.7 per cent increase in the total number of transactions, making it the highest six-month operating income to date, the company said.
“The increase in the number of transactions was predominantly driven by very strong demand from the corporate business segment underpinned by expansionary economic conditions in the UAE,” Al Ansari said.
The UAE's economy, the Arab world's second-largest, grew by 3.8 per cent on an annual basis in the first quarter of this year, boosted by its strong non-oil sector as it continues to push for diversification, according to preliminary government data.
A strong increase in the bank notes business, including multicurrency prepaid cards on the back of the tourism boom and the peak holiday season, also contributed to the company's transaction growth. These increases were partly offset by a marginal reduction in the number of remittance transactions.
“We are firing on all cylinders across our businesses. We are investing in our domestic expansion while also expanding our footprint in other promising GCC markets,” Mr Al Ansari said.
The company expects to complete the 100 per cent acquisition of Al Ansari Exchange Kuwait by the end of the year and anticipates the impact of the consolidation to be reflected in the first quarter of 2024, with “revenue and cost synergies to be unlocked thereafter,” it said.
Earlier this week, Al Ansari said it had received initial approval to acquire a majority stake in one of Oman's major exchange companies as part of its plan to expand in the Gulf region.
The acquisition is still at its initial stage, subject to the necessary regulatory approvals and due diligence, with the expected completion date for the deal set for the first quarter of 2024.
heading
Iran has sent five planeloads of food to Qatar, which is suffering shortages amid a regional blockade.
A number of nations, including Iran's major rival Saudi Arabia, last week cut ties with Qatar, accusing it of funding terrorism, charges it denies.
The land border with Saudi Arabia, through which 40% of Qatar's food comes, has been closed.
Meanwhile, mediators Kuwait said that Qatar was ready to listen to the "qualms" of its neighbours.
Stree
Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5
more from Janine di Giovanni
MATCH INFO
Everton 0
Manchester City 2 (Laporte 45 2', Jesus 90 7')
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
LA LIGA FIXTURES
Saturday (All UAE kick-off times)
Valencia v Atletico Madrid (midnight)
Mallorca v Alaves (4pm)
Barcelona v Getafe (7pm)
Villarreal v Levante (9.30pm)
Sunday
Granada v Real Volladolid (midnight)
Sevilla v Espanyol (3pm)
Leganes v Real Betis (5pm)
Eibar v Real Sociedad (7pm)
Athletic Bilbao v Osasuna (9.30pm)
Monday
Real Madrid v Celta Vigo (midnight)
ALRAWABI%20SCHOOL%20FOR%20GIRLS
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Champion%20v%20Champion%20(PFL%20v%20Bellator)
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SPEC%20SHEET%3A%20NOTHING%20PHONE%20(2A)
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The%20specs
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Company%20Profile
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COMPANY%20PROFILE
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Specs%3A%202024%20McLaren%20Artura%20Spider
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%203.0-litre%20twin-turbo%20V6%20and%20electric%20motor%3Cbr%3E%3Cstrong%3EMax%20power%3A%3C%2Fstrong%3E%20700hp%20at%207%2C500rpm%3Cbr%3E%3Cstrong%3EMax%20torque%3A%3C%2Fstrong%3E%20720Nm%20at%202%2C250rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20Eight-speed%20dual-clutch%20auto%3Cbr%3E%3Cstrong%3E0-100km%2Fh%3A%3C%2Fstrong%3E%203.0sec%3Cbr%3E%3Cstrong%3ETop%20speed%3A%20%3C%2Fstrong%3E330kph%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh1.14%20million%20(%24311%2C000)%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EAlmouneer%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Dr%20Noha%20Khater%20and%20Rania%20Kadry%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EEgypt%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E120%3Cbr%3E%3Cstrong%3EInvestment%3A%20%3C%2Fstrong%3EBootstrapped%2C%20with%20support%20from%20Insead%20and%20Egyptian%20government%2C%20seed%20round%20of%20%3Cbr%3E%243.6%20million%20led%20by%20Global%20Ventures%3Cbr%3E%3C%2Fp%3E%0A
Kanguva
Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
More Iraq election coverage:
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
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Mental%20health%20support%20in%20the%20UAE
%3Cp%3E%E2%97%8F%20Estijaba%20helpline%3A%208001717%3Cbr%3E%E2%97%8F%20UAE%20Ministry%20of%20Health%20and%20Prevention%20hotline%3A%20045192519%3Cbr%3E%E2%97%8F%20UAE%20Mental%20health%20support%20line%3A%20800%204673%20(Hope)%3Cbr%3EMore%20information%20at%20hope.hw.gov.ae%3C%2Fp%3E%0A
More on Quran memorisation:
All or Nothing
Amazon Prime
Four stars
Director: Shady Ali
Cast: Boumi Fouad , Mohamed Tharout and Hisham Ismael
Rating: 3/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The UAE's journey to space
The biog
Favourite food: Fish and seafood
Favourite hobby: Socialising with friends
Favourite quote: You only get out what you put in!
Favourite country to visit: Italy
Favourite film: Lock Stock and Two Smoking Barrels.
Family: We all have one!
Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
Apple product price list
iPad Pro
11" - $799 (64GB)
12.9" - $999 (64GB)
MacBook Air
$1,199
Mac Mini
$799
The biog
Name: Marie Byrne
Nationality: Irish
Favourite film: The Shawshank Redemption
Book: Seagull by Jonathan Livingston
Life lesson: A person is not old until regret takes the place of their dreams
Brief scores:
England: 290 & 346
Sri Lanka: 336 & 243
Score
Third Test, Day 1
New Zealand 229-7 (90 ov)
Pakistan
New Zealand won the toss and elected to bat
Heavily-sugared soft drinks slip through the tax net
Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.
Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.
A 680ml can of Arizona Iced Tea costs just Dh6.
Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.
TICKETS
Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.
All%20The%20Light%20We%20Cannot%20See%20
%3Cp%3E%3Cstrong%3ECreator%3A%20%3C%2Fstrong%3ESteven%20Knight%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%C2%A0%3C%2Fstrong%3EMark%20Ruffalo%2C%20Hugh%20Laurie%2C%20Aria%20Mia%20Loberti%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E1%2F5%C2%A0%3C%2Fp%3E%0A
BRIEF SCORES:
Toss: Nepal, chose to field
UAE 153-6: Shaiman (59), Usman (30); Regmi 2-23
Nepal 132-7: Jora 53 not out; Zahoor 2-17
Result: UAE won by 21 runs
Series: UAE lead 1-0
MATCH INFO
FA Cup fifth round
Chelsea v Manchester United, Monday, 11.30pm (UAE), BeIN Sports
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
LUKA CHUPPI
Director: Laxman Utekar
Producer: Maddock Films, Jio Cinema
Cast: Kartik Aaryan, Kriti Sanon, Pankaj Tripathi, Vinay Pathak, Aparshakti Khurana
Rating: 3/5
THE LOWDOWN
Photograph
Rating: 4/5
Produced by: Poetic License Motion Pictures; RSVP Movies
Director: Ritesh Batra
Cast: Nawazuddin Siddiqui, Sanya Malhotra, Farrukh Jaffar, Deepak Chauhan, Vijay Raaz
SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now
Match info
Champions League quarter-final, first leg
Liverpool v Porto, Tuesday, 11pm (UAE)
Matches can be watched on BeIN Sports
Brief scoreline:
Tottenham 1
Son 78'
Manchester City 0
The specs
Price, base: Dh228,000 / Dh232,000 (est)
Engine: 5.7-litre Hemi V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 552Nm
Fuel economy, combined: 12.5L / 100km
Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
MATCH INFO
Uefa Champions League semi-finals, second leg:
Liverpool (0) v Barcelona (3), Tuesday, 11pm UAE
Game is on BeIN Sports
A Dog's Journey
Directed by: Gail Mancuso
Starring: Dennis Quaid, Josh Gad, Marg Helgenberger, Betty Gilpin, Kathryn Prescott
3 out of 5 stars
The five pillars of Islam
