FTSE 250 payments processing player Network International (NETW) was the biggest mid-cap mover on Wednesday after reporting upbeat half year results and upping growth guidance. The company upgraded its revenue expectations to ‘slightly higher’ than 2019 levels having previously steered the market to expect a ‘return to 2019 levels’ as global economic recovery continues to kick in.
Shares in Networkers International jumped more than 10% to 389.4p, taking its market value to beyond £2.1 billion.
The Dubai-based company is the largest payment processor in the Middle East and Africa, serving circa 65,000 merchant partners and 220 financial institutions globally. Revenues and adjusted earnings before interest, tac, depreciation and amortisation grew 17% to $156 million and $60.4 million respectively.
Growth was driven primarily by a jump in Merchant Solutions revenue, bolstered by high e-commerce volumes and improved international spending.
Profit guidance stayed as it was with the company planning to use the extra revenues to support increased investment in the business.
COVID SNAP BACK
Network International’s current year trading has been all about clawing back transaction volumes lost last year during the pandemic, where tourism payments have been savaged. That is starting to rebound, just like it has for the likes of PayPal, Visa and Mastercard, as borders opened up.
Network International has ‘several positive tailwinds to aid its recovery,’ according to Megabuyte’s Rob Warensjo, led by elevated e-commerce levels and easing travel restrictions, which should bolster card-present volumes.
The company is also pressing on with the long-winded takeover of Africa payments peer DPO in a $288 million deal, which is seems to be finally closing on completion.
