The company, which operates in Africa and the Middle East, has seen strong underlying growth in payment transactions that has supported growth in issuer solutions along with new customer acquisition; The figures include the growth of DPO Group, acquired by Network International (www.Network.ae) in 2021, which saw a host of key business gains and signed a deal with RCS Group, a Network client, which enabled more than 2 million RCS retail store cards. holders to pay for goods at DPO merchants; Launch plans underway in Egypt, customer onboarding in progress in Saudi Arabia; New products gain momentum, including ‘fintech in a box’ where Network can issue cards and perform processing for fintechs in South Africa, through a partnership with Access Bank; Domestic and international Total Processed Volumes (“TPV”)1 in the UAE are now 20% and 9% respectively ahead of pre-pandemic Q1 2019, reflecting a strong rebound in tourism
Network International Holdings Plc, Q1 2022 Business Update
Network International has announced a 33% year-over-year revenue increase for the first quarter of 2022. The company, comprised of a group of companies, is a leading enabler of digital commerce in the Middle East and Africa, providing a complete set of solutions technology-enabled payment gateways. merchants and financial institutions of all types and sizes.
Network International’s offering includes procurement and processing services, and an ever-evolving range of value-added services. In 2021, Network International acquired DPO Group, a leading African digital payments company, in a landmark deal for the African payments landscape.
Network International has offices in Nigeria, South Africa, Kenya, Ghana and Egypt, and a customer presence in almost every other African country.
Nandan Mer, Executive Director, commented:
“We have started the year strong with revenue growth of 33% y/y in the first quarter. Key markets are seeing continued improvement in consumer spending and increasing numbers of international visitors, driving accelerated growth in domestic and international POS. This has been supported by customer gains and capability launches.
DPO Group has also seen good volume growth of 33% year over year, as well as the benefit of another cross-sell deal with an existing network customer – RCS Group. In general, the growth in the period is evidence of the successful fulfillment of our strategic objectives and a solid foundation for the coming year”.
Gains from new clients: saw a strong start to the year
Network secured three new clients from financial institutions; and renewed two existing contracts, including the renewal of our processing agreement with Commercial Bank of Dubai. In new business gains, the company has signed a five-year deal with Taj Bank in Nigeria for virtual and physical cards, the first Islamic bank to join Network’s Nigerian platform. Network is now up and running and providing processing services to Blink Neo Bank in Jordan, the region’s first licensed digital-only bank, a win that is evidence of Network’s enriched digital banking expertise, providing issuing, hosting and personalization of cards. Other new clients include Albaraka Bank, the second financial institution won by the company in Sudan.
Good results were observed in all regions
Issuer Solutions had an excellent start to the year, reflecting benefits from customers signed the previous year, cross-selling to existing customers, and strong underlying digital transaction growth. Performance was broad based in both the Middle East and Africa, with the number of transactions rising sharply in the quarter. The number of hosted credentials also remains in positive growth territory, with North Africa and Jordan particularly supportive during the period.
DPO operates well with new merchant gains and capability launches
DPO achieved good growth during the first quarter of 2022 with TPV increasing 30% (33% at constant exchange rates) year over year as the company made a number of new gains in its key markets of South Africa, Zambia and Namibia , including Harley Davidson, Estee Lauder and Pernod Ricard. Consequently, revenues grew 20% during the period.
Client onboarding in progress in Saudi Arabia; launch plans underway in Egypt
Network is in the process of onboarding its new processing client in Saudi Arabia and has a healthy pipeline of new business in the country. The company expects The Kingdom to become a key market as digital payment adoption continues to accelerate in line with Vision 2030.
In Egypt, Network is currently in the process of applying for a payment service provider license with its technology stack already in the implementation phase. The company expects the revenue opportunity to unfold as early as 2023.
Cross-selling and new product launches: gaining momentum
Network has launched ‘fintech in a box’, where you can now issue, host and process credentials for fintechs in South Africa by partnering with Access Bank. This allows Network to significantly scale its partnerships with fintechs and serve them across the payments value chain, a model that will be shared across the group and regions.
UAE consumer spending exceeds pre-pandemic level driving growth at Merchant Solutions
Network saw the total value of domestic payments processed (Total Processed Volumes (“TPV”)1 in the first quarter of 2022 increase 22% year over year, as consumer spending remained buoyant. Tourism robust growth and business travel supported by events such as Expo 2020 Dubai led to a strong increase in international POS, which grew by 120% year-on-year, now standing at 20% and 9% respectively, above their pre-pandemic levels in the first quarter of 2019.
