Network International posts 91 % growth in profits in 2008

Consolidated net profit grew by 91% in 2008, amounting to Dhs272m compared with Dhs142m in 2007. Network International's wholly owned Egyptian subsidiary, Network Processing Company (NPC), also reported a net profit of Dhs7.1m. The chart below shows the growth trend in the Consolidated Net Profit.

*Note: The above results include the Performa numbers for NBD Acquiring Business in the Consolidated Network International's Results, which is legally merged into Network International's Business, as a result of the ENBD Merger.

Announcing the results , Abdulla Qassem, Chairman, Network International said "2008 has been a momentous year for us, in several respects; Business alignments on various levels with key

partners have consolidated our market position as a leading player in the card payment services industry- both in the UAE and across the region. As a market leader we will continue to invest in
the two key drivers of our growth, technology and innovation which in turn will advance the business growth strategy of our partners and clients."

Commenting on the results, Ram Chari, CEO, Network International said: "This success is the result of teamwork, years of hard work and a culture of excellence we embody in everything we do. Over the years, we have anticipated the needs of the market, planning ahead to support our customers and partners and will continue to do so by offering the best-in-class services and products to banks and merchants throughout the region."

Growth across the portfolio
Network International's two business streams are third-party cards processing and merchant acquiring. Under third-party cards processing, Network International undertakes credit and debit cards processing for banks and financial institutions - from issuing the cards to managing end-consumer relationships as well as ATM transaction switching and fraud monitoring.. Under merchant acquiring, the company provides end-to-end credit and debit card payment acceptance and processing facilities for merchants.

Operating revenues for 2008 saw increased contributions from both Acquiring and Processing business streams - rising 34% and 43% respectively. Merchant Acquiring revenue growth of 34% over 2007 resulted from a corresponding increase in total merchant sales volume. At the end of 2008, market share in this business stream was approximately 65% with services provided to over 10,000 merchants.

The chart below shows the growth trend in this business stream, matched with a corresponding increase in the merchant base for Network International.

















In 2008, the company's card acquiring and acceptance portfolio grew to include prestigious brands for leading merchants in the UAE with acquiring and acceptance of JCB cards completed at major retailers - an important milestone for 2008.

In the processing stream, overall revenue from third party business grew by 43% over 2007 as the number of multi-national banks and financial institutions supported by Network International rose from 36 in 2007 to 42 in 2008 with a network of more than 700 ATM's being managed and close to 2M cards personalized, a growth of 90% over 2007.

Broadening horizons
Network International continued its active pursuit of strategic alliances and ventures with leading players in the MENA and GCC region to complement and enhance its product and service offerings. The company successfully concluded its joint venture - Sinnad - in Bahrain with partner The Benefit Company. The alliance will support expansion of Network International's processing business into Bahrain, KSA and Qatar.

On the card personalization side, Obernet, a Network International JV with Oberthur, France - one of the world leaders in secure card-based processing solutions and technologies - was also concluded in 2008, with the Obernet personalization Bureau inaugurated in Q1, 2009

On the integration front, the acquiring integration initiative aimed at achieving benefits through system rationalization and merging of NBD's acquiring business with Network International, was initiated in 2008 and is proceeding as per plan. Leveraging on the integration efforts, the company has embarked upon setting up of a Merchant Contact Centre to work as a single merchant contact point.

The company's Operations Centre has also been consolidated into a dedicated site for streamlining client operational services. In 2008, significant investments were made in IT to strengthen Network International's infrastructure and platforms in order to augment the company's product offerings and manage growth initiatives.

Network International has been awarded ISO 27001 UKAS (United Kingdom Accredited Services) certification as recommended by BSI Management System on concluding certification audit since September, 2006, this certification remains under surveillance audit on an annual basis.

During 2008, the company had a stronger focus on client relationship building through involvement in several social and community initiatives such as high-end entertainment events and niche sport sponsorships.

Looking ahead

Offering comprehensive end-to-end card management solutions and potential strategic alliances within the region remains Network International's focus for the year 2009 which will further strengthen Network International's position as the region's market leader in providing Merchant Acquiring and Card Processing and Payment Services.