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Our issue is packed with earnings updates, and we also have news of GoBus’s IPO plans, the FRA’s cap for companies looking to use robo-advisors, and more.
Madinet Masr almost quadruples its profits in 1Q 2024
The Clap:
Real estate developer Madinet Masr reported a 287% YoY rise in net profit during the three months ending in March.
Revenues:
The company’s net sales surged 194.6% YoY during 1Q 2024 to EGP 2.99 billion.
Gross profit:
The developer recorded a 316% rise in gross profit to more than EGP 2.4 billion.
Net income:
The company recorded EGP 1.18 billion in net profits for the quarter, almost quadrupling its bottomline.
It was a historic quarter for gross contracted sales
as Madinet Masr increased its numbers by more than 8x to a record EGP 14.9 billion.
Big plans ahead:
Last week, reports circulated Madinet Masr and Heliopolis For Housing & Development are partnering on a new residential project spanning 490 feddans in New Heliopolis that is expected to generate USD 4 billion (c. EGP 194.4 billion) in revenues over nine years.
GoBus is planning to IPO by 2026
The Clap:
Government supervised shareholding company GoBus Transportation is planning to list 30% of its shares on the EGX within the next two years.
Local foothold:
As of 2017, GoBus covered over a 70% share of trips from Cairo to Hurghada and Sharm El-Sheikh, 20% on the Cairo-Alexandria line, and a 30% share of Upper Egypt trips. The company’s valuation hovers around EGP 5 billion according to preliminary estimates, GoBus CEO Fady Nassif noted.
GCC and EU expansion in the offing:
The company is in the process of establishing a Saudi public transport arm, with plans to launch in the Kingdom by June or July of 2024. GoBus is also looking to enter the UAE and Greek markets by year’s end, Nassif told local media.
The Clap:
EGX-listed financial services provider Beltone Holding reported EGP 514 million in net income for 1Q 2024.
Operating revenue:
Beltone upped its operating revenue 812% YoY to EGP 1.33 billion over the three months ending in March on the back of strong brokerage operations and successful augmentation of its margin lending portfolio to EGP 1.24 billion.
Net operating profit:
The firm’s net operating profit rose to EGP 868 million, as the growth in revenues outpaced the increase in operating expenses.
Net profits:
The company’s bottom line grew by EGP 514 million during the quarter from net losses of EGP 52 million in 1Q 2023. The company attributes its profitability to growth driven by the restructuring and turnaround strategy.
Remember:
In 2022, Emirati investor Chimera acquired a majority stake in Beltone and overhauled the company’s management team. The company set out a huge capital increase to recapitalize its business, and laid out a strategy to transition into a data-centric firm.
The Clap:
Cleopatra Hospitals Group recorded a 92% YoY leap in net income for the three months ending in March.
Revenues:
Cleopatra’s top line grew 51.9% YoY to EGP 1.18 billion in 1Q 2024.
Gross profit:
The company grew its gross income 65.3% YoY to EGP 435.6 million.
Operating profit:
Cleopatra saw a 90% YoY rise in operating profit to EGP 276.8 million during the quarter.
Net profit:
The company raked in EGP 202.5 million in net income for the quarter, recording a 92% rise YoY.
Big plans in the works:
Late in January the company announced plans to invest EGP 2 billion in Egypt’s healthcare sector by August 2025.
What else is clapping?
El Kahera El Watania Investment reported EGP 579.5 thousand in net losses for 1Q 2024 compared to profits of EGP 76.5 thousand during the same period last year.
The Financial Regulatory Authority has set a minimum cap of EGP 15 million for companies looking to leverage automated financial advisors (robo advisors). Robo advisors provide algorithm-driven wealth management services with minimal to no human intervention.
Mandatory power cuts — in effect since the summer of last year — are expected to be terminated by the end of 2024 “at the latest,” Electricity Minister Mohamed Shaker said.
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