Abu Dhabi, UAE–Multiply Group posted a net profit, excluding fair value changes, of $90.12 million for Q3 2023. This marks a significant 337% increase from $21 million reported in the same quarter of 2022. In Q3, 2023, the group’s net profit, including fair value changes in investments , stands at $40 million.
The group’s Q3 2023 revenue of $96 million is a 23.82% YoY growth driven by the organic growth across its 4 core verticals (+9% YoY) and the consolidation of Media 247 and LVL effective 1 July 2023. The gross profit margin rose to 50.1%, reflecting an improvement of 128 basis points from Q3 2022.
This growth was bolstered by dividend income amounting to $53 million from the group’s public portfolio and an increased share of profit to reflect the change in the functional currency of the Turkish JV Kalyon from Turkish Lira to USD.
With its dual investment arms, Multiply and Multiply+, the group continues to demonstrate its financial prowess, targeting lucrative opportunities across a spectrum of asset classes.
Multiply’s current investment verticals encompass mobility, energy and utilities, media and communications, and beauty and wellness. Meanwhile, Multiply+ remains sector-agnostic, aiming for double-digit returns across asset classes.
On the sustainability front, Sustainalytics, a global leader in environmental, social and governance (ESG) rating and research, has rated Multiply Group’s risk level at 15.8. This commendable rating places the group in the “Low Risk” category, positioning it among the top 10% of companies in the diversified financials sector. This is a testament to our commitment to sustainability.
Multiply Group successfully acquired a 55% majority stake in Media 247, a leading UAE outdoor advertising firm, at an investment of $61.26 million.
Media 247, known for its extensive portfolio of over 45 exclusive outdoor premium hoardings, unipoles, and 3D structures across Dubai’s most prominent locations, solidifies Multiply Group’s position in the media vertical. In H1 2023, Media 247 overachieved both revenue and profitability targets, highlighting its strong financial capabilities.
In a move to bolster its footprint in the wellness domain, MG Wellness Holding LLC, the wellness-centric subsidiary of Multiply Group, secured a 49.38% equity interest in LVL Technology Holding in August. LVL Technology Holding is renowned for its LVL Wellbeing platform, which offers a comprehensive suite of individual, team, and corporate well-being solutions, championing a balanced work-life dynamic.
This strategic investment is poised to amplify operations and bolster regional expansion. Furthermore, the integration of HealthierU into the LVL Wellbeing platform has created a holistic offering, positing it as the region’s premier source for preventative health and well-being services for its clientele.
Under Multiply+ arm, Multiply Group invested $100 million for a minority stake in EIG’s Breakwater Energy which owns 25% interest in Repsol E&P, a North American-based gas-weighted exploration and production company. Through this acquisition, Multiply+ taps into a highly profitable and cash generative, diversified global upstream portfolio offering a highly attractive dividend profile.