ABU DHABI: Multiply Group today reported its Q3-24 results with a net profit excluding fair value changes of AED 207 million, bringing net profit for the first nine months to AED 920 million. The year-to-date strong performance (+13% 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 AED 744 million includes AED 537 million unrealized fair value gains from the public investment portfolio.
Group revenue in Q3 2024 increased by 47% YoY to AED 518 million, driven by organic growth across all verticals (+9% YoY) and the consolidation of BackLite Media, The Grooming Company Holding, and Excellence Premier Investment. Blended gross profit margin remained healthy at 44%, 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 AED 221 m
illion.
Balance sheet remains strong, with cash balance of AED 1.88 billion and additional liquidity of up to AED 4 billion available for future investments. This financial flexibility reflects a disciplined approach to capital allocation, as evidenced by the approximately AED 1 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 AED 25 million of efficiency gains (over 50% of the Group’s AED 45 million target).
The Group’s impactful 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 mobil
ity 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 and 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 port
folio closed the quarter with a valuation of AED 29 billion, compared to an initial investment of AED 15 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.
Source: Emirates News Agency