Multiply Group registers net profit of $107mln in Q1 2024

Multiply Group registers net profit of $107mln in Q1 2024

Multiply Group, a leading Abu Dhabi-based investment holding firm, today reports its Q1 2024 results with a net profit excluding fair value changes of AED 393 million, representing 48 percent growth compared to the same period last year (AED 266 million Q1 2023).

Robust underlying profit growth was driven by strong performance across business verticals. Reported loss of AED 4.2 billion includes over AED 4.6 billion paper losses from unrealized changes in fair value driven by periodic market fluctuations with no implications on the operational performance of the business. In year 2022, we reported paper gains of AED 18.5bn which gives us fair value gains of AED 13bn since then.

Group revenue increased by 45 percent YoY to AED 391 million, driven by growth across all verticals and the consolidation of Media 247 and BackLite Media under the Media vertical. Blended gross profit margin remained healthy at 51.1 percent, reflecting continued profitability across core verticals. Investment and other income was +29 percent YoY at AED 361 million.

Group net profit growth excluding unrealised fair value changes was driven by strong vertical performance (48 percent YoY blended growth) – excluding the Kalyon JV contribution, which was negative AED 13 million on higher deferred tax expense impacted by hyperinflation accounting in Turkey. In Q1 2024, we reported income tax benefit of AED 46 million on the recognition of fair value losses during the period.

#UAE markets track oil prices higher | Reuters

UAE markets track oil prices higher | Reuters

Stock markets in the United Arab Emirates rose on Friday, tracking gains in oil prices on the prospect that OPEC+ will continue to curb output.

Three sources from the OPEC+ group said it could extend its voluntary oil output cuts of 2.2 million barrels per day beyond June if oil demand does not increase.

Brent crude was up 0.3% to $83.94 a barrel by 1124 GMT.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.1% higher, rebounding back from previous two sessions' losses, helped by a 3.9% surge in IHC-owned investment firm Multiply Group (MULTIPLY.AD), opens new tab ahead of its earnings later in the day.

Market heavyweight First Abu Dhabi Bank (FAB.AD), opens new tab and Aldar Properties (ALDAR.AD), opens new tab gained 0.7% and 2.1%, respectively.

Among the gainers, Abu Dhabi Aviation (ADAVIATION.AD), opens new tab surges 7.2%, its highest intraday gain in 10 months, after the firm completed the acquisition of stakes in Etihad Airways Engineering, Advanced Military Maintenance Repair and Overhaul Centre (AMMROC) and Global Aerospace Logistics (GAL) from Abu Dhabi sovereign wealth fund ADQ's subsidiary.

Dubai's main index (.DFMGI), opens new tab edged up 0.1%, supported by a 1.3% rise in state-run Dubai Electricity and Water Authority (DEWAA.DU), opens new tab and 2.4% increase in Emaar Development (EMAARDEV.DU), opens new tab.

While gains in the index were stemmed by a 1.3% decline in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and 0.6% decrease in top lender Emirates NBD Bank(ENBD.DU), opens new tab.

#Dubai's business park operator posts 15% rise in Q1 2024 profit

Dubai's business park operator posts 15% rise in Q1 2024 profit

Dubai business park operator TECOM Group posted a 15% year-on year (YoY) rise in Q1 2024 net profit to 293 million dirhams ($79.8 million) due to demand from new and existing customers.

Revenue increased 10% YoY to AED 564 million as the portfolio occupancy rate across commercial and industrial leasing portfolio reached an all-time high of 91%, the company said in a statement on Friday.

Number of customers surpassed 11,000 thanks to strong customer retention across the business and addition of new customers, it added.

Occupancy rates across the portfolio climbed for three consecutive quarters, and has reached a company all-time high of 91%, with some business districts near full capacity, said Abdulla Belhoul, Chief Executive Officer of TECOM Group.

He expects the demand-induced growth momentum to be sustained for the rest of the year.

"Our confidence is underpinned by a positive macroeconomic outlook enabled by pro-growth government initiatives, including Dubai’s D33 and the UAE’s Operation 300 billion."

The TECOM Group operates business parks and districts across the emirate, including Dubai Internet City, Dubai Outsource City and Dubai Media City.

#UAE's April non-oil business activity slows sharply on flood impact, PMI shows | Reuters

UAE's April non-oil business activity slows sharply on flood impact, PMI shows | Reuters

Growth in the United Arab Emirates' non-oil business sector eased to its lowest level in eight months in April, a survey showed, as companies felt the impact of the country's worst storms in 75 years on sales and output.

The seasonally-adjusted S&P Global UAE Purchasing Managers' Index slowed to 55.3 in April, the lowest reading since August last year, and further easing from 56.9, but remained firmly above the 50 mark, signalling growth.

While the Output sub index increased slightly to 63.2 in April from 62.7 the previous month, reflecting strong domestic economic conditions and promotional initiatives, the impact of the rainfall was more acute in the pace of new orders growth.

New sales grew at the slowest pace since February 2023 with the New Order sub index at 56.0 in April, down from 61.5 the previous month as the heavy rainfall disrupted operations and weighed on sales.

Backlogs of work also rose sharply due to the adverse weather, which significantly affected the country's business and tourism hub of Dubai.

"Companies operating in Dubai recorded a particularly acute loss of sales momentum as adverse weather disruptions hit business and consumer spending," Tim Moore, Economics Director at S&P Global Market Intelligence.

"Non-energy businesses are nonetheless still highly upbeat about their year ahead growth prospects. Many commented on strong sales pipelines and a swift recovery from the impact of heavy rainfall," Moore added.

Businesses remained confident about future output over the next year but the degree of optimism eased, slipping to its lowest reading since January.

Non-oil GDP represents about 74% of the UAE's overall GDP as the Gulf state accelerates plans to diversify its economy away from hydrocarbons and draw foreign investment.