The firm has a lot of strategies to spend a $20 million push into Saudi Arabia in 2020.
On the back of double-digit revenue growth, the payments backed processor firm Network International has reported a 26 percent surge in its 2019’s Net Profit. It stated in a recent statement that the revenue grew 12.4 percent to $334.9 million, the Dubai-based company’s net income from its current operations climbed up to a whopping $59 million (Dh216.7m) that also beat analysts’ expectations.
Simon Haslam, the organization’s Chief Executive stated that “the overall growth across the business lines remains into a very healthy and as well as is enabled from their unique competitive position.”
The payment processing business Network International business raised $1.4 billion as listed on London Stock Exchange (LSE) the previous year. The card and payment giant Mastercard took a 10 percent stake in the firm and also pledged for investing further $35 million in the next five years.
According to the statement, “Network International is as well as allocating a $20 million in capital expenditure for its Saudi push and expects the biggest Arab economy to generate up to 10 percent of its total revenue over time.”
The firm is in pursuit of entering its expansion plans in the Saudi Arab Market, wherein the Digital Payments only accounts for 9 percent of the overall transactions. Network International also stated that the Kingdom also aims to raise this ratio to 70 percent under its Vision 2030 strategy.
Mr. Haslam also stated that “the firm also remains opened to the growth opportunities that are made available backed on with the support of market consolidation, substantial outsourcing contracts, or selective acquisitions.”
He also added that “such opportunities typically require investment and time to develop, but will generate significant incremental returns over the longer term.”
According to a statement “the biggest Arab economy is expected to generate 10 percent of total revenue over the time by an allocation of $20 million in capital expenditure for pushing Saudi Arab forward.”
Despite the emerging and biggest threat of CoronaVirus looming over ‘Multiple Demography’s’ and its impact on global travel and spending patterns, the firm generated around 73 percent of the revenue from the Middle East the previous year and 27 percent from Africa, and the latter being the fastest-growing part of the business.
It has also allocated a staggering $20 million to separate the joint services from its shareholder Emirates NBD, which involves separating a shared data centre and financial systems “for improvising their operational flexibility and create a platform for long term growth.”
The work is expected to be completed in 2021 and would cost $30m in total, it noted. The statement also stated that “they are all ascertaining the reduction amongst the client transaction volumes in the recent times as well monitoring the situation very closely about the impact that remains uncertain and which will depend on the length and severity of the effect of the coronavirus on economic activity in varied markets.”