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Network International delivers strong H1 2023 results across Middle East and Africa (MEA) markets

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Network International

Underlying free cash flow was USD 65 million, up 63% y.o.y.; and cash flow from operating activities was USD 107 million, supported by strong underlying business performance

DUBAI, United Arab Emirates, August 15, 2023/APO Group/ — 

First half revenue increased 19% (CCY1) y.o.y. to USD 239 million, supported by a 33% (CCY1) rise in the total value of consumer payments processed by merchant customers (TPV); Underlying EBITDA grew 23% to USD 94 million reflecting strong revenue growth and cost control; Deployed on-soil technology in South Africa, unlocking revenue opportunities and enhancing competitive positioning; Significant new customer wins with eight new financial institution signings including Vodacom Financial Services, a leading MNO in Africa; Good reception for recently launched merchant services in Egypt, having signed over 700 merchants.

Network International Holdings Plc (LSE:NETW) has announced its interim financial results for the half year ended 30 June 2023.

The company reports good H1 2023 results with total revenue growing 19% in constant currency year-on-year (y.o.y.) demonstrating broad-based growth across all regions and business lines, with the total value of consumer payments processed with merchants across the group, including African markets, growing 33% in constant currency y.o.y.  In the Middle East, the value of merchant payments processed from domestic consumers and international visitors grew significantly, increasing 28% and 53% year on year respectively.

Profit for the period was USD 34 million, up 9% y.o.y. Underlying free cash flow was USD 65 million, up 63% y.o.y.; and cash flow from operating activities was USD 107 million, supported by strong underlying business performance. Revenue in Africa represented 28% of the Group’s total revenue across the Middle East and Africa during this period.

Nandan Mer, Chief Executive Officer, commented: “Network saw another good trading period, delivering 19% constant currency revenue growth in the first half of the year. Our performance continues to be supported by the acceleration of digital payments growth across key markets but is also evidence of our successful strategic execution, competitive services and product offering. Performance in our home market of the UAE has been particularly good, where we have seen consistent market share gains in direct-to-merchant services through 2022 and into 2023, supported by our continued focus on high growth strategic areas such as SME, online and hospitality. We have made good progress in new market opportunities, having secured another three new financial institutions in the Kingdom of Saudi Arabia and signed over 700 merchants since our direct-to-merchant service was launched in Egypt earlier this year. Whilst overall Africa performance was slower on the back of tough macro-economic conditions, we have recently deployed on-soil technology capabilities in South Africa, positioning Network to better serve customers locally and providing excellent foundations for future growth. We remain encouraged by performance across the Group and I thank our colleagues for their expertise and delivery of such good results.”

New business remained healthy, especially among financial institutions. Network secured eight new customers across acquirer and issuer processing including Vodacom Financial Services, one of Africa’s most renowned Mobile Network Operators (MNOs) to provide merchant acquirer processing services in South Africa. In addition, it renewed its contract with Polaris Bank, one of Nigeria’s leading retail banks, for another five years. Network also continued to attract a significant number of key account and SME merchants and became the payments partner of choice for the Namibian government, enabling digital payments for e-visas and passport applications.

Capabilities grew with a widening range of payment acceptance methods and Value Added Services. Enhancing its mobile money capabilities in Africa through its partnership with Ecocash, a MNO in Zimbabwe, African merchants can now accept more mobile money payments. New services for financial institutions and credential issuing customers included expanding its N-GeniusTM online platform’s regional footprint. Rolling out the white label online payment solutions to a further four financial institutions for online acquirer processing services, the platform is now live across 26 African countries. The launch of SmartView Merchant reports further expands its insights and analytics proposition in Africa, providing merchants with in-depth actionable information on their business, including sales and transaction performance, dynamic currency conversion and loyalty analysis.

New market opportunities have been unlocked for outsourced payment services. Network deployed its on-soil technology in South Africa, unlocking revenue opportunities and enhancing its competitive positioning by aligning with new regulatory legislations to better serve customers in the region. Its Broad-Based Black Economic Empowerment (B-BBEE) score in South Africa has also improved significantly from level 8 in December 2022 to Level 5 in June 2023, having committed to supporting and enhancing its local workforce.

Network successfully launched direct-to-merchant services in Egypt at the start of the year and has already secured over 700 merchants, including Tradeline, who are Apple’s authorised resellers. The entry into direct-to-merchant services in Egypt builds on Network’s already well-established presence as a processing services provider in the country.

Group Financial Summary (USD‘000)H1 2023H1 2022y.o.y. change
Total revenue239,290205,03216.7% (19% ccy1)
   Merchant Services111,35585,67330.0% (33% ccy1)
   Outsourced Payment Services125,990117,9266.8% (9% ccy1)
   Other revenue1,9451,43335.7%
Underlying EBITDA294,00976,21623.3%
Underlying EBITDA margin239.3%37.2%210bps
Profit for the period34,91631,9979.1%
     Underlying free cash flow265,36439,97563.5%
    Cash flow from operating activities107,19990,60418.3%
      Leverage30.6x0.7x (FY22)(0.1)x

[1] Ccy – Constant currency terms.
[2] This is an Alternative Performance Measure (APM), financial definitions and further details on financial disclosures are available in the company’s regulated RNS on the London Stock Exchange.
[3] Leverage ratio computation and reconciliations are available in the company’s regulated RNS on the London Stock Exchange.
[4] TPV: Total Processed Volumes – the aggregate monetary volume of purchases processed by the Group within its Merchant Services business line.
[5] Domestic TPV represents spending from consumers domiciled in the region.
[6] International TPV represents consumer spending by overseas visitors.

Distributed by APO Group on behalf of Network International.

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Ministers among hundreds of energy-sector leaders to attend AOW event

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October 4, 2024

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Sinclair

The event kicks off with an invitation-only ministerial symposium focused on the theme of “Fostering innovation, attracting investment, and promoting sustainable growth in the oil, gas, and energy sectors”

CAPE TOWN, South Africa, October 4, 2024/APO Group/ — 

AOW: Investing in African Energy (https://AOWEnergy.com) – Africa’s leading oil, gas and energy event – has confirmed attendance for more than 80 ministers and senior officials, representing African governments, energy departments and regulators at next month’s event.

These influential stakeholders will be among the more than 1 600 senior delegates and industry leaders who will be attending the event to develop policy, share discoveries, secure investment, and shape Africa’s energy future.

The event kicks off with an invitation-only ministerial symposium focused on the theme of “Fostering innovation, attracting investment, and promoting sustainable growth in the oil, gas, and energy sectors.”

Given the recent major oil-and-gas discoveries across Africa, the energy transition and major geopolitical events, it is clear that the energy sector needs positive intervention

Among the officials and government ministers attending will be energy leaders from South Africa, Nigeria, Namibia, Cote d’Ivoire, Mozambique, DRC, Ghana, Kenya, Madagascar, Eswatini, Uganda, CAR, Guinea Conakry, Guinea Bissau, Ethiopia, The Gambia, Gabon, Malawi, Morocco, Zanzibar, Liberia, Senegal, Congo Brazzaville and Sierra Leone.

In addition, the event will feature high-level delegations from numerous national oil companies, as well as multilateral bodies including the African Union, (AU), African Energy Commission (AFREC), African Petroleum Producers’ Organization (APPO) and the Southern African Power Pool (SAPP).

AOW will see these energy leaders networking with C-suite executives and decision-makers from more than 760 top energy companies at daily networking events, to discuss insights, forge new relationships, and negotiate major energy deals.

“We are so excited to see the calibre of delegates at this year’s AOW event,” says Chief Executive Officer of Sankofa Events, Paul Sinclair. “Given the recent major oil-and-gas discoveries across Africa, the energy transition and major geopolitical events, it is clear that the energy sector needs positive intervention. The high-powered attendance proves AOW is a key platform to enable this intervention.”

Key themes to be discussed at this year’s AOW will be sustainable upstream development; expanding gas value chains; renewables and new energies; adoption of best-in-class technologies; and access to finance.

AOW: Investing in African Energy will culminate in a special anniversary party at Groot Constantia Vineyard to celebrate 30 years of the AOW event.

Distributed by APO Group on behalf of AOW: Investing in African Energy.

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Afreximbank approves US$20.8 million for Starlink Global’s cashew factory project in Lagos

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October 4, 2024

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PAPSS

The facility is expected to promote value addition which will guarantee increased earnings to the company while also fostering the creation of about 400 new jobs

CAIRO, Egypt, October 4, 2024/APO Group/ — 

African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has approved a US$20.8 million financing facility for Nigeria-based Starlink Global & Ideal Limited to enable the company construct and operate a 30,000-metric tonne per annum cashew processing factory in Lagos.

We are delighted at this partnership which promises to deliver significant impact on employment in Nigeria

According to the facility agreement signed in on July 22, 2024, Afreximbank will provide the funds in two tranches with the first tranche of US$7.48M going toward capital expenditure for the construction of the factory and the second, totalling US$13.25M to be deployed as working capital for the operations of the factory.

The facility is expected to promote value addition which will guarantee increased earnings to the company while also fostering the creation of about 400 new jobs once the factory becomes operational. It is also expected to support about 40 small and medium-sized enterprises.

Commenting on the transaction, Mrs. Kanayo Awani, Executive Vice President, Intra Africa Trade and Export Development, Afreximbank, said that by supporting Starlink Global to establish a modern processing facility, Afreximbank is making it possible for Africa to add value to its agro-commodities, thereby facilitating exports and subsequent inflow of much-needed foreign exchange into the continent.

“We are delighted at this partnership which promises to deliver significant impact on employment in Nigeria. It will contribute to value creation and to the development of the local community while also improving the lots of smallholder farmers and small business suppliers that will work with Starlink across the value chain,” Mrs. Awani added.

Distributed by APO Group on behalf of Afreximbank.

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Sonangol to Lead Decarbonized Oil & Gas (O&G) Development, Says Angolan National Oil Company (NOC) Head

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October 4, 2024

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Sonangol

Participating in an on-stage interview at Angola Oil & Gas 2024, Sonangol CEO Sebastião Gaspar Martins emphasized that oil and gas remains a core focus for the national oil company

LUANDA, Angola, October 3, 2024/APO Group/ — 

Angola’s national oil company Sonangol reiterated its commitment to driving sustainable hydrocarbon development during the Angola Oil & Gas (AOG) conference this week. Speaking during an “In-Conversation with” session, Sonangol CEO Sebastião Gaspar Martins stated that the company will not abandon oil and gas, but rather advance decarbonized oil and gas development.

We are looking at opportunities in the gas sector and have identified the right partner to develop non-associated gas

By investing in upstream oil and gas production while prioritizing low-carbon projects, Sonangol aims to boost national crude output, while diversifying and decarbonizing the industry. The NOC is focusing efforts on non-associated gas development, as well as alternative energy sources such as solar.

“We are looking at opportunities in the gas sector and have identified the right partner to develop non-associated gas. Gas produced from Angola LNG will be used for the production of fertilizer and we are evaluating the utilization of gas in the south of the country, linking gas with steel industries. We also have a blue carbon project, linked to the reduction of carbon through the plantation of mangroves. We have one area in Luanda and have identified four additional areas for this,” stated Gaspar Martins.

Sonangol has undergone transformation in recent years: following the creation of the National Oil, Gas & Biofuels Agency (ANPG) in 2019, Sonangol transferred its role as national concessionaire and regulator. This transformation has aimed to make Sonangol more competitive and strengthen its capacity as an upstream operator. Concurrently, the government is partially privatizing the NOC, with privatization set to be complete in 2026. This process will enhance financial capacity, allowing Sonangol to drive new upstream projects forward.

“The transformation of Sonangol started several years ago, when we passed the regulatory, concessionaire role to the ANPG. At the time, we transferred almost 600 employees to the ANPG. After that, Sonangol underwent a restructuring program where we created five core business units from 36 different entities – starting with exploration and production. We want to go public, but we want to do it properly. So, we are currently going through all the processes to do this,” stated Gaspar Martins.

Distributed by APO Group on behalf of Energy Capital & Power.

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