Multiply Group Achieves AED 920 Million Net Profit In First Nine Months Of 2024

Multiply Group has announced its Q3 2024 financial results, revealing a net profit of AED 207 million, excluding fair value changes. This brings the total net profit for the first nine months to AED 920 million, marking a 13% increase compared to the previous year. The growth is attributed to successful integration of recent acquisitions, aligning with the Group's strategy of enhancing vertical expertise within its portfolio.

The Group's revenue for Q3 2024 rose by 47% year-on-year to AED 518 million. This increase was driven by organic growth across all sectors and the consolidation of companies like BackLite Media, The Grooming Company Holding, and Excellence Premier Investment. The gross profit margin remained robust at 44%, reflecting changes in revenue mix within the Media vertical and the inclusion of Excellence under the Mobility vertical.

Multiply Group maintains a strong balance sheet with a cash reserve of AED 1.88 billion and additional liquidity up to AED 4 billion for future investments. This financial strength supports their disciplined capital allocation strategy, demonstrated by approximately AED 1 billion spent on strategic acquisitions in 2024 that align with their vertical building approach.

The public market portfolio under Multiply+ closed the quarter with a valuation of AED 29 billion, up from an initial investment of AED 15 billion. Despite market fluctuations impacting some asset values, the portfolio's performance remains solid, supported by targeted investments with long-term potential.

In Q2, Multiply Group launched an efficiency programme that accelerated significantly over the quarter. It achieved over AED 25 million in efficiency gains, surpassing half of its AED 45 million target. Cost-cutting measures included procurement savings, role consolidation as it expanded, and business layer restructuring.

On the revenue front, Multiply Group increased its market share in media due to its strong presence across three major OOH brands in the UAE. Additionally, it unlocked revenue within mobility by restructuring Emirates Driving Company's training schedule to enhance trainer capacity.

Technological Advancements and Future Plans

The Group has embraced digital transformation to boost efficiency by automating backend processes and launching new revenue streams focused on programmatic advertising within Media. This approach leverages AI for better ad targeting and revenue growth while modernising technology infrastructure for improved decision-making.

Looking ahead, Multiply Group plans to harness AI and advanced technologies across its businesses to extract more value. This includes increasing revenue productivity through predictive maintenance for EDC's vehicles and cost optimisation initiatives like automating proposal generation within media operations.

The Group has also introduced new online portals and services, reduced cash transactions, and gained insights into customer spending behaviours. These efforts are part of their broader strategy to drive synergies among businesses under each vertical while accelerating digital transformation and operational efficiencies.

With inputs from WAM