Network Intl backs FY guidance as it swings to interim profit
Payments company Network International said on Wednesday that it swung to a profit in the first half as revenue surged amid a recovery from the pandemic, as it backed its full-year expectations.
In the six months to 30 June, the company swung to a pre-tax profit of $15m from a loss of $936,000 in the same period a year ago, with revenue up 16.5% at $156.4m. Network said the performance and KPIs across business lines and key regions showed an ongoing recovery from Covid-19.
Chief executive Nandan Mer said: "It is encouraging to see the business continuing to take strides. We are seeing a recovery from Covid-19, with the majority of KPIs now ahead of pre-pandemic levels, including the signing of new merchant and bank customers.
"At the same time, we have yet to see a full recovery in our Merchant Solutions business, which is reflective of our exposure to international spending, more discretionary merchant sectors, as well as competitive dynamics. This provides us with the opportunity to more proactively improve our performance and accelerate growth in this area, which will be supported by a rejuvenated strategic approach and expanded capabilities."
The company’s EBITDA and profit outlook for the year was unchanged. Network International said that given the ongoing recovery, it now expects to see total revenues slightly higher than those recorded in 2019.
"We intend to use the incremental revenue to support the future growth of the business through investment in our operations, which will lead to underlying costs higher than originally anticipated," it said.