Wed, Oct 30, 2024 | Rabi al-Thani 27, 1446 | DXB ktweather icon0°C

Multiply Group reports Dh920 million net profit for first nine months

Group revenue in Q3 2024 increased by 47% YoY to Dh518 million

Published: Tue 29 Oct 2024, 8:58 PM

Updated: Tue 29 Oct 2024, 10:01 PM

Top Stories

Multiply Group, the Abu Dhabi-based holding company that invests in and operates businesses globally, on Tuesday reported a net profit excluding fair value changes of Dh207 million, bringing net profit for the first nine months to Dh920 million.

The year-to-date strong performance (+13 per cent year-on-year) reflects the successful integration of recent acquisitions, aligning with the Group’s strategy of building vertical expertise within its portfolio. Reported net profit for the quarter of Dh744 million includes Dh537 million unrealized fair value gains from the public investment portfolio.


Group revenue in Q3 2024 increased by 47 per cent YoY to Dh518 million, driven by organic growth across all verticals (+9 per cent YoY) and the consolidation of BackLite Media, The Grooming Company Holding, and Excellence Premier Investment. Blended gross profit margin remained healthy at 44 per cent, reflecting the change in revenue mix within the Media vertical and the consolidation of Excellence under the Mobility vertical. Investment and other income including dividend income totalled Dh221 million.

Balance sheet remains strong, with cash balance of Dh1.88 billion and additional liquidity of up to Dh4 billion available for future investments. This financial flexibility reflects a disciplined approach to capital allocation, as evidenced by the approximately Dh1 billion deployed in 2024 in three strategic acquisitions that align with Multiply’s vertical building strategy.

2024 at Multiply Group is The Year of Efficiency. Multiply Group’s efficiency programme which launched in Q2 has accelerated significantly over the quarter, achieving over Dh25 million of efficiency gains (over 50 per cent of the Group’s Dh45 million target).

The Group’s cost-cutting initiatives include identifying savings in procurement, consolidating duplicated roles as it grows, and restructuring to remove business layers. On the revenue side, Multiply Group has captured more market share in media given its significant presence across three dominant OOH brands in the UAE. It has also unlocked revenue within mobility by restructuring the training schedule of Emirates Driving Company (EDC) to add more trainer capacity. Digital transformation has also enabled the Group to be more efficient. Here it has automated backend processes, launched new revenue sources with a focus on programmatic within Media—which leverages AI to automate ad buying for improved targeting and revenue growth— and modernised its technology infrastructure to enable better decision making. The Group has also launched new online portals & services, reduced cash transactions, and gathered insights into customer spend behaviours.

Going forward, the Group aims to leverage AI and advanced technologies across its businesses to extract additional value. This includes driving increased revenue productivity, such as using predictive maintenance for EDC’s vehicles to ensure maximum utilisation, as well as cost optimization initiatives like automating proposal generation to save man-hours within its media operations.

Under Multiply+, the public market portfolio closed the quarter with a valuation of Dh29 billion, compared to an initial investment of Dh15 billion. Despite market fluctuations affecting the fair value of some assets, performance across the portfolio remains strong as does the underlying long-term potential from targeted investments. In its core operational portfolio, the Group focusses on driving synergies and integration among the businesses under each vertical, with emphasis on accelerating digital transformation and operational efficiencies.



Next Story