Page 158 - AAE PR REPORT - June 2024

5/13/24, 10:28 AM Al Ansari Financial’s First-Quarter Profit Falls 26% To $27M
The exchange house said its operating income for the January-March period of 2024 dropped
by 4.3% year-on-year to $74.8 million (AED 274.7 million) due to the persistent challenges of

the parallel market in key remittance corridors and the prevailing macroeconomic conditions

in the region.

Al Ansari Financial said in its earnings report on Friday that challenges posed by the parallel

market in key remittance corridors like India, Egypt, and Pakistan led to a 3% year-on-year fall
in remittance income during the quarter.

Its earnings before interest, taxes, depreciation, and amortization (EBITDA) also declined by

19.1% year-on-year to $33.3 million (AED 122.4 million) for the quarter.

During the quarter, the total number of transactions rose by 5.1% year-on-year to 12.4 million.

The exchange house noted that digital channels reported a remarkable 25% year-on-year
growth in terms of number of transactions, accounting for 21% of the overall outward

remittances.

Al Ansari's Wage Protection System (WPS) business maintained strong momentum, with the
number of transactions during the quarter surging by 15.2% year-on-year.

The company’s free cash flow was $31.3 million (AED 114.8 million), registering an 18.4%

fall from the year-ago period.

Al Ansari Financial’s capital expenditure stood at $2.2 million (AED 8 million) during the

quarter, showing a 29% fall from the year-ago period.

Al Ansari Exchange’s (Kuwait) integration with Oman Exchange is still ongoing and will be

consolidated into Al Ansari Financial Services by the third quarter of 2024.

Crucial quotes

“We started the year with results that reflect the positive impact of our diversified portfolio and

ongoing efforts to navigate the challenging market environment. The parallel market conditions in
critical markets have stabilized, and the increased remittance fees implemented in April position us

for significant future growth,” said Group CEO Rashed A Al Ansari.

“We expect healthy growth in remittance operating income, especially as the fee increase comes into

effect in the second quarter and the challenge of the parallel market recedes,” Dy. Group CEO

Mohammad Bitar.

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