Alef Education, Yahsat, Americana, and more post 2Q earnings

ALEF EDUCATION-

Alef Education reported a 34% y-o-y decrease in net income after tax to AED 113.1 mn in 2Q 2024, according to its consolidated financial statements (pdf). Without the impact of corporate tax and excluding income from financial assets carried at fair value, net income was up 4% y-o-y to AED 124.3 mn, on the back of “strong cost discipline coupled with stable revenue performance,” Alef said in a separate earnings release (pdf). The recently listed edtech firm’s revenues from contracts remained relatively flat y-o-y at AED 177.5 mn.

On a six-month basis, Alef’s net income fell 40% y-o-y to AED 226.2 mn in 1H 2024. Without the impact of the corporate tax, net income reached AED 248.5 mn, with margin expansion to 70%, “substantially above industry benchmarks.” The company’s revenues rose 1% y-o-y to AED 354.2 mn during the first six months of the year.

Looking ahead: The company has a “sizeable” pipeline of agreements for the second half of 2024 and is in talks with several governments to expand its offering across its high-growth target markets, including the B2B and private school market, it said in the release. Alef also initiated discussions to extend its contract with the Abu Dhabi Department of Education and Knowledge — which provisions a minimum of 80k students with a fixed fee per student, and offers “significant revenue visibility and reliability over the next seven years” — for another three years.

REMEMBER- Alef debuted on the ADX in June, raising AED 1.89 bn — making it the biggest this year — but seeing a lackluster debut, with shares falling 18% on its first day of trading. The company’s flagship learning platform spans several international markets, including the UAE, where it has already captured a 58% market share, as well as the US, Morocco and Indonesia.

YAHSAT-

Al Yah Satellite Communications Company’s (Yahsat) net income attributable to shareholders rose 11.6% y-o-y to USD 20.4 mn in 2Q 2024 on the back of consistent revenue growth across its operations, according to the company’s financials (pdf). The company’s revenues fell 5.7% y-o-y to USD 98.7 mn.

On a six month basis, Yahsat’s net income saw a 62% y-o-y increase, reaching USD 73.3 mn in 1H 2024, according to a separate earnings release (pdf). Meanwhile, revenues dipped 3% y-o-y to USD 199.7 mn.

Infrastructure and managed solutions drove growth: Yahsat attributed its performance to 1% y-o-y growth in its infrastructure operations, which involves supplying long-term communications capacity to the government, as well as 15% y-o-y growth in managed solutions, which deliver satellite comms to government entities.

Slight revenue hits from mobility and data solutions: Yahsat’s mobility satellite services segment saw a revenue drop due to fewer equipment sales following the Thuraya 3 satellite malfunction. Data Solutions — Yahsat’s smallest segment — also saw a slight revenue drop due to fewer subscribers and equipment sales, as it shifts focus to higher-margin markets.

MULTIPLY GROUP-

Abu Dhabi-based investment firm Multiply Group reported a 49% y-o-y increase in its net income to AED 319 mn in 2Q 2024, excluding fair value changes in investments, according to its earnings release (pdf). The company attributed its performance to the consolidation of new acquisitions. Including unrealized fair value changes on its investments, the group’s net income came in at AED 992 mn during the quarter.

Multiply Group’s revenues surged 60% year-on-year to AED 442 mn during the quarter, driven by growth in its four key sectors — mobility, energy and utilities, media and communications, and beauty and wellness. The media and communications sector accounted for 33% of revenues and 32% of net income, while mobility contributed 20% of revenues. The acquisition of Media 247, BackLite Media, and The Grooming Company also contributed to the group’s quarterly performance, according to the statement.

On a six-month basis, Multiply Group reported a net loss of AED 3.25 bn during 1H, down from a bottom line of AED 400.1 mn in the same period last year, according to its financials (pdf). The group’s revenues rose 53% y-o-y during the first half of the year to reach AED 833.4 mn.

AMERICANA-

Americana Restaurants saw net income drop 40.1% y-o-y to USD 51.1 mn in 2Q 2024, on the back of fewer sales amid geopolitical tensions, according to its financials (pdf) and earnings release (pdf). Revenues also decreased 14.2% to USD 559.3 mn, it said.

REMEMBER- The company has been hit by the impact of a consumer boycott of its brands that came after the start of Israel’s war in Gaza, leading it to slash nearly 100 jobs (most of them in Dubai) in January.

On a 1H basis: Americana’s net income also contracted 44.8% y-o-y to USD 80 mn in 1H 2024, with revenues also down 15.2% to USD 1.1 bn, despite the opening of 81 new stores during the period. Aside from geopolitical effects, unfavorable effects due to the devaluation of the EGP in Egypt and higher depreciation charges also contributed to the decline in performance.

Looking ahead: The company is opting a “watchful approach” to expansions, with plans to add between 175 and 185 new stores this year, the company said. It will also focus on investing in “smart pricing, targeting, promotion and marketing” to boost revenues.

PNC INVESTMENTS-

Sobha Realty parent company PNC Investments (PNCI)’s net income rose 49% y-o-y to AED 1.06 bn in 1H 2024, according to its consolidated financial statements (pdf), on the back of a 22% y-o-y growth in sales to AED 9.03 bn, according to its earnings release (pdf). The Dubai-based residential developer booked AED 3.93 bn in revenues, climbing 22% y-o-y during the first half of the year, as a result of “strong demand, ahead of schedule construction, and resilient pricing.”

Looking ahead: Sobha’s revenue backlog stands at over AED 20 bn, with over 20k units in the pipeline to support medium-term growth, the release said.

ALSO- S&P Global Ratings upgraded PNCI’s rating to BB from BB-, a note from the credit rating agency showed. S&P also revised PNCI’s outlook to stable from positive. Strong EBITDA forecasts as well as robust demand for real estate in Dubai underpinned S&P’s rating.

RAKBANK-

The National Bank of Ras Al Khaimah (RakBank) saw its net income after tax climb 14% y-o-y to AED 515.5 mn in 2Q 2024, according to its financial statements (pdf). The lender logged AED 1.17 bn in operating income during the quarter, increasing 6.6% y-o-y. Net interest income and net income from Islamic financing for the quarter rose 6.5% to AED 882.3 mn.

On a six-month basis, RakBank’s net income after tax climbed 21% y-o-y to AED 1.09 bn in 1H 2024. The bank recorded AED 2.35 bn in operating income, an 8.7% y-o-y increase, while net interest income and income from Islamic finance grew 9% y-o-y, reaching AED 1.76 bn during the first half of 2024.

Behind the growth: RakBank attributed the income increase to its “well-diversified asset growth and sticky current account savings account (CASA) base, augmented by higher foreign exchange and investment income,” the bank said in its earnings release (pdf).

DUBAI REFRESHMENT COMPANY-

Dubai Refreshment’s net income fell 85% y-o-y to AED 40 mn in 2Q 2024, according to its financials (pdf). The company saw its revenues inch up 2.8% y-o-y to AED 216.6 mn in 2Q. During 1H 2024, Dubai Refreshment reported a 77% y-o-y drop in net income, falling to AED 65.7 mn. The company booked AED 384.1 mn in revenues, up 1.3% y-o-y during the first six months of 2024.