A whole lotta earnings: Yesterday saw a fresh batch of 1H earnings published — we have earnings from Talaat Moustafa Group Holding, Contact Financial, and Fawry.

FAWRY’S NET INCOME MORE THAN DOUBLE-

Fawry’s net income jumps 122%: EGX-listed fintech giant Fawry saw its bottom line jump 122.1% y-o-y to EGP 628.8 mn in 1H 2024, according to its latest earningsrelease(pdf). The company’s top line grew 59.2% y-o-y during the period to record EGP 2.3 bn “driven by the expansion and diversification of the company’s business offerings, which alongside effective cost control measures resulted in robust profitability margins.”

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Growth across all segments: Fawry’s banking services segment saw its revenues jump 70.2% y-o-y to EGP 932.1 mn, contributing 41% of the firm’s revenues for the six-month period. It was followed by the alternative digital payments segment, which saw its revenues grow 31.3% y-o-y to EGP 765.1 mn. Financial services came in third, recording EGP 377.7 in revenues, a 113% y-o-y growth, while revenues from supply chain solutions surged 66.8% y-o-y to EGP 160.1 mn.

Looking at 2Q: The firm saw its revenues growth 57.7% y-o-y during the second quarter of the year to sit at EGP 1.2 bn. Net income during the quarter rose 101.3% y-o-y to EGP 321.7 mn.

Looking ahead: “As we progress into 2024, our strategic focus remains sharply centered on innovation and the expansion of services to meet the diverse needs of our customer base. Concurrently, we have placed a strong emphasis on increasing our reach to Egypt's unbanked and underserved populations,” said CEO Ashraf Sabry.

TMG HOLDING REPORTS “UNPRECEDENTED” RESULTS-

An unprecedented half for TMG: Real estate player Talaat Moustafa Group Holding saw its revenue grow 59% y-o-y during the first half of the year to record EGP 17 bn, according to the company’s report on its earnings(pdf). Net income saw a “remarkable” 308% y-o-y growth to EGP 6.4 bn during the six-month period.

Driving the growth: “This surge was driven by significant double and triple-digit increases in hospitality income,” the release said, citing the landmark agreement that saw the real estate giant acquire a majority stake in a group of seven historic hotels. The company also pointed to growth in “other recurring income segments, the development segment, and foreign currency gains.”

Property sales were also on the rise: TMG Holdings’ property sales hit a “record-high” EGP 391 bn during the first seven months of the year thanks to two “record-breaking” projects — its first foray into the Saudi market the mixed-use Benan City project and its first venture into the North Coast the EGP 1 tn SouthMed project. The group’s sales were up 6.5x in comparison to the EGP 60 bn recorded during the same period last year.

CONTACT FINANCIAL SEES DIP IN REVENUES, INCOME -

Contact Financial’s bottom line dipped: Non-banking financial services firm Contact Financial’s normalized net income dipped 44% y-o-y to EGP 216 mn during 1H 2024, the company said in its latest earnings release (pdf).

In detail: Net income at the NBFI’s financing division fell 62% y-o-y to EGP 109 mn during the six-month period on the back of the company’s “decision to delay part of its portfolio transfer activities, a revenue line that has historically contributed significantly to the division’s profitability, in light of the current interest rate environment.” Additionally, unfavorable interest rate environment and fluctuating consumer products prices were behind decreases at Contact’s Auto and Consumer Finance segments, pushing new financing down 40% y-o-y to EGP 4.8 bn.

Ins. division saw growth: Net income from Contact’s ins. division was up 155% y-o-y to 97 mn in 1H 2024 thanks to growth at Sarwa Life and Sarwa Ins., whose total gross written premiums grew an average of 44.5% y-o-y.

On a quarterly basis: Contact saw its normalized net income fall 23% y-o-y to EGP 158 mn in 2Q 2024 thanks to of a fall in income from the company’s financing division,

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