Payments processor Network International reported a 26 per cent increase in its 2019 net profit on the back of double-digit revenue growth.
The Dubai-based company's net income from continuing operations climbed to $59 million (Dh216.7m), which beat analysts' expectations, as revenue grew 12.4 per cent to $334.9m, it said in a statement on Monday.
"Growth across all business lines remains healthy, enabled by our unique competitive position," said the company's chief executive, Simon Haslam.
The company remains open to growth opportunities available through "market consolidation, substantial outsourcing contracts, or selective acquisitions," he said, adding, "such opportunities typically require investment and time to develop, but will generate significant incremental returns over the longer term".
Network International is a payment processing business that raised $1.4 billion through its listing on the London Stock Exchange last year. As part of the process, Mastercard took a 10 per cent stake in the firm and subsequently pledged to invest a further $35m in the business over the next five years.
The company is pursuing plans to enter the Saudi Arabian market, where digital payments currently only account for 9 per cent of transactions. The kingdom is aims to increase this ratio to 70 per cent under its Vision 2030 startegy, Network International said.
The company has already set up a legal entity in the Saudi Arabia and took part in a sandbox regulatory scheme run by the Saudi Arabian Monetary Authority. However, to process a wider range of payments it needs to develop in-country data processing and technology capabilities.
Network International is allocating $20m in capital expenditure for its Saudi push and expects the biggest Arab economy to generate up to 10 per cent of its total revenue over time, according to the statement.
It has also earmarked $20m to separate joint services from its shareholder Emirates NBD, which involves separating a shared data centre and financial systems "to improve our 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 company generated about 73 per cent of revenue from the Middle East last year and 27 per cent from Africa, and the latter was the fastest-growing part of the business. However, it warned that despite a presence in "multiple geographies", the coronavirus remains a threat due to its impact on global travel and spending patterns.
"We have seen some reduction in client transaction volumes in recent weeks. The full impact remains uncertain and will depend on the length and severity of the effect of the coronavirus on economic activity in our markets, and we will continue to monitor the situation closely," the statement said.
