Multiply Group’s 2023 profit falls on lower investment income and higher costs

Abu Dhabi-listed Multiply Group’s balance sheet remains robust with a cash balance of Dh1.56 billion. Photo: Multiply Group

Multiply Group, an Abu Dhabi-based technology-focused investment holding company, reported a sharp decline in its 2023 profit due to lower investment income and higher expenses and finance costs, but its annual revenue climbed driven by acquisitions.

The company’s profit attributable to owners of the company for the 12 months to the end of December fell to Dh337.8 million ($92 million) from Dh18.4 billion reported during the same period in the previous year, the company said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.

The company’s net profit excluding fair value gains more than doubled to Dh1.14 billion.

Finance costs for the 12 months more than doubled to Dh415.6 million. The company’s expenses climbed more than 27 per cent annually to Dh302.7 million, while investment and other income fell 97 per cent to Dh407.3 million.

Multiply’s revenue for the reporting period rose 15 per cent on an annual basis to about Dh1.3 billion on the back of new acquisitions.

“In 2023, we worked diligently on building our verticals – creating value by adding new services, identifying portfolio-wide synergies, investing in bolt-on acquisitions, buying competitors and enhancing margins,” said Samia Bouazza, group chief executive and managing director at Multiply Group.

The company did not disclose the financials for the fourth quarter specifically.

Multiply, a subsidiary of Abu Dhabi’s International Holding Company, made new acquisitions last year as it continues to grow its portfolio.

In September, it bought a 55 per cent stake in outdoor advertising company Media 247 for Dh225 million as part of portfolio expansion.

Multiply also bought a stake in LVL Technology Holding for an undisclosed amount and a minority stake in Breakwater Energy, a top institutional investor in the global energy and infrastructure sectors, for Dh367 million amid its global expansion plans.

It also has stakes in businesses such as Emirates Driving Company, Viola Communications, Abu Dhabi National Energy Company, better known as Taqa, the Dubai Electricity and Water Authority, Borouge and Getty Images.

Multiply is “well-positioned and laser-focused on the path ahead, where we seek to continue driving strategic investments that will create lasting and meaningful impact across the UAE economy”, its chairman Andre Sayegh said.

The company has been investing across its two units, Multiply and Multiply+.

Multiply operates and invests in four business lines – mobility, energy and utilities, media and communications, and beauty and wellness.

Multiply+, the group’s non-core sectors focused investment arm, has set a target of double-digit returns across several asset classes.

The company’s balance sheet remains robust with a cash balance of Dh1.56 billion, it said.

Total assets in 2023 climbed to Dh42.2 billion from Dh41.2 billion in the previous year.