UAE's Finablr posts 9% increase in 9-month adjusted income
The London Stock Exchange-listed company, whose brands include Travelex and UAE Exchange, processed 13.5% more money transactions during the period
Finablr, the UAE payments and foreign exchange holding company, posted a 9 per cent increase in adjusted income for nine months as volumes grew in double digits.
The company's adjusted income rose to $1.2 billion (Dh4.4bn) in the nine months ending September 30, Finablr said in a statement on Monday to the London Stock Exchange (LSE), where its shares trade. The group's nine-month adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) rose 22.1 per cent year-on-year to $182 million.
"Each of our three segments delivered strongly during the period as we continue to reap the benefits of a clear strategy and sharp focus on execution," said Promoth Manghat, group chief executive.
Finablr, whose brands include Travelex and UAE Exchange, was listed on the LSE in May after completing an initial public offering that valued the company at $1.6bn. It has a global footprint spanning more than 170 countries and managed $114.5bn in annual volumes for its clients last year. The company's biggest markets are India, Pakistan, Bangladesh and the Philippines.
The group's total processed volumes in the first nine months of the year rose 13.5 per cent year-on-year to $97.2bn, according to the bourse filing.
The increase in volumes reflects "robust organic growth and deepening commercial ties with our partners, as well as the incremental benefit of seasonality", Mr Manghat said.
Finablr signed partnerships with Airtel Africa, Samsung and China Union Pay in October.
"The recent deals support medium-term growth in Finablr’s B2B [business to business] segment, a key driver of group Ebitda growth and higher Ebitda margins over the medium term," EFG Hermes said on Tuesday.
The Egyptian investment bank reiterated a "buy" rating on the stock.
On October 3, Finablr announced a commercial partnership with Samsung to provide international money transfers through an in-app mobile wallet service to 47 countries.
On October 22, it announced a commercial partnership with Airtel Africa to enable customers to send money from more than 100 countries into Airtel Money wallets across Africa.
And on October 29, Finablr announced an agreement with China Union Pay to collaborate on cross-border payments into the mainland, digital wallets and shopping, VAT refunds and accept Union Pay-issued cards at Finablr-managed ATM networks.
"As evidenced by recent partnership announcements in our B2B and payment technology solutions segment, our technology credentials are an increasingly visible differentiator, as is Finablr' s capacity to innovate and deliver FinTech at scale," Mr Manghat said.
Finablr remains "highly confident" in the future prospects of its business, chief executive said.
Updated: November 12, 2019 01:11 PM