Network International Holdings PLC on Thursday noted a challenging external economic environment but highlighted that the longer-term outlook remains positive.

The Dubai-based provider of payment products and services said pretax profit fell 15% to $79.0 million in 2023 from $92.5 million in 2022.

Revenue edged up 13% to $490.1 million from $435.5 million.

Selling, operating and other expenses however increased 17% to $147.5 million from $125.7 million, while personnel expenses increased 11% to $144.1 million from $129.3 million.

Net interest expenses came in 42% higher at $26.4 million compared to $18.5 million.

Expected credit losses ballooned to $8.5 million from $2.9 million. Further, the company reported a $6.0 million unrealised foreign exchange loss for 2023, compared to a gain of $2.6 million in 2023.

The company said that the external economic environment has been challenging across several markets during 2023, with the Middle East & Africa region seeing a ‘significant reduction in economic growth expectations driven by: higher inflation and interest rates, material currency devaluations of the EGP/USD and Naira/USD and the impact of current conflicts in region’.

However, its longer-term outlook remained positive, with digital transaction-related payment volumes in the Middle East & Africa set for high growth of around 10% for 2022 to 2027.

‘Key themes in global payments reaffirm our plans to diversify revenues, automate and modernise,’ Network said.

Network shares were 0.1% lower at 393.60 pence each on Thursday morning in London.

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