Leading digital payment solutions provider Network International reports strong strategic delivery and record merchant wins with Q4 2022 revenue up 13% y/y – African Business
The company, which operates across Africa and the Middle East, has seen strong underlying growth in payment transactions with an increase in merchant solutions growth acceleration vs pre-pandemic during Q4 2022; successfully launched direct-to-merchant services in Egypt, with the first Small and medium-sized enterprises (SME) merchants onboarded and transacting through Network’s point-of-sale terminals; figures include growth for DPO Group, acquired by Network International (www.Network.ae) in 2021, whose new capabilities continue to diversify merchant reach across sectors.
Network International Holdings Plc. Q4 2022 trading updates
Network International has announced a 13% year-on-year increase in revenue for Q4 2022. Network International is a consortium of companies that provides technology-enabled payment solutions for merchants and financial institutions of all sizes.
Nandan Mer, Chief Executive Officer, commented on the matter: “We ended 2022 in a position of strength, having set out a refreshed strategy and delivering on several key commitments, including revenue growth acceleration and financial results in-line with guidance. We had a record number wins and new capabilities launched in the merchant business. DPO in Africa’s acquisition has doubled our ecommerce merchant revenues, added alternative payments capabilities, and accelerated SME registrations across the Group. We saw strong revenue growth in the processing business due to new customer wins and the rapid transition to digital payments in all our markets. We also launched new revenue growth opportunities, including processing services in Saudi Arabia with a number customers, merchant payments to Egypt, and commercial payment services throughout the region. Looking ahead we continue to see a high growth outlook, supported by structural market expansion, and continued strategic delivery.”
Merchant Solutions business line review
Merchant Solutions momentum reflects strong underlying market growth and strategic progress
Africa (DPO Group):DPO witnessed Q4 TPV rise 12% y/y, or 25% in constant forex. While South Africa’s markets are still growing, South Africa is facing challenging macro-economic conditions due to a low energy supply, high unemployment and rising interest rates. This has had a negative impact on consumer spending.
DPO’s new capabilities continuing to diversify merchant reach across sectors
Network saw continued growth in customers with DPO. Notable new wins included Guess and Footgear South Africa, as well as Forever Living and Jubilee Life Insurance on other African markets. DPO’s payment capabilities have been integrated with Skidata, a car parking systems and solutions provider operating across Africa, allowing car park operators in shopping malls and hotels to accept payments through DPO. DPO has also partnered with Amadeus, an online booking and inventory management platform, to allow more travel agents in Africa to accept online payments.
Direct-tomerchant Egypt services now live
Network has launched direct-to-merchant payment services in Egypt following the approval of its Payment Facilitator and Payment Services License, with the first SME merchants onboarded and transacting through Network’s point-of-sale terminals. The local sales team is being trained and built out. There is also a healthy merchant pool. Network anticipates that direct-tomerchant services will be a new revenue stream in 2023.
Strong momentum in merchant sign-ups
Record levels of merchant signings were achieved in 2022. Significant wins were recorded across key enterprise segments and SME sectors in Q4.
Review of Issuer Solutions business line
Five new financial institutions win, totaling 18 for the year
Network secured five new financial institutions in Q4, including Pivot Bank East Africa, for the issuance debit cards.
Several contracts were also extended, including a five-year renewal with Dubai Financial Market and two contracts in Egypt, extending Network’s relationship with QNB Al-Ahli for a further ten years, to provide one of the region’s largest private banks with processing services; and with Attijariwafa Bank Egypt for a further three years.
Timing of new business revenues streams has an impact on revenue growth
Issuer Solutions’ full-year revenue growth of 12% y/y was driven by supportive dynamics in new business signings and credentials hosted. While Q4 revenue was flat y/y, growth in this period was affected by a variety of unrelated factors that culminated in the last quarter. Some financial institutions decided not to renew certain services or card portfolios due to the existence of non-recurring revenue streams (or one-off) in the previous year. This is a common occurrence throughout the year. Network also experienced delayed signing of new business revenue streams and longer lead time to onboard signed customers towards end of year. These factors would normally have compensated for the above.
Distributed by APO Group, Network International
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