ABU DHABI, 28 April 2025 – Multiply Group (ADX: MULTIPLY), a leading Abu Dhabi-based investment holding firm, today reportsits Q1 2025 results with an EBITDA excluding fair value changes of AED 572 million,representing a 19% growth compared to the same period last year (AED 482 million in Q1 2024). Robust underlying profit growth was driven by strong performance across business verticals. Reported profit of AED 210 million includes over AED 133 million of paper losses from unrealised changes in fair value driven by periodic market fluctuations with no implications on the operational performance of the business offset by AED 328 million Investment income.
In its core operational portfolio, the Group focusses on driving synergies and integration among the businesses under each vertical, with emphasis on accelerating digital transformation and operational efficiencies. This is reflected in continued and strong revenue growth.
Group revenue increased by 50% YoY to AED 585 million, driven by growth across all verticals and the consolidation of The Grooming Company Holding, Excellence Driving and a full quarter consolidating BackLite Media. Blended gross profit margin remained healthy at 49%, reflecting continued profitability across core verticals.
The Group’s net profit from operating businesses increased by 26% on the back of the Beauty & Wellness vertical growing net profit by more than 120% and the Media & Communications vertical increasing net profit by 38% as a result of organic and inorganic growth. Share of loss from Kalyon JV increased to AED 25 million in Q1 2025 (Q1 2024 - AED 14 million) as a result of hyperinflationary accounting and amortization of deferred tax asset.
Balance sheet remains robust with cash balance of AED 1.73 billion. The Group again demonstrated the value of its long-term strategy by building a diversified portfolio of strong assets across its core verticals whilst investing in lucrative assets under Multiply+ for double-digit returns.
Under Multiply+, the public market portfolio closed the quarter with a valuation of AED 32 billion, compared to an initial investment of AED 15 billion. Despite market fluctuations affecting the fair value of some assets, performance across the portfolio remains strong as does the underlying long-term potential from targeted investments.
Group Highlights
Strategic Investments and Partnerships in Q1’25
Tendam
Multiply Group signed an agreement to acquire a controlling stake of 67.91% in Castellano Investments, which owns Spanish fashion retailer Tendam, in the UAE's company's first major foray into Europe and the retail and Apparel sector, subject to approval by the pertinent regulatory authorities. Multiply signed the deal with CVC Funds and PAI Partners, to become the majority shareholder in Castellano Investments. Llano Holdings and Arcadian Investments, the corporate investment vehicles for CVC Funds and PAI Partners respectively, will remain minority shareholders. Tendam is Spain’s second-largest apparel group by market share and one of Europe’s leading omnichannel apparel groups, operating 1,800 points of sale in more than 80 markets including Spain, Portugal, France, UAE and Latin America and brands such as Women’secret, Springfield and Cortefiel. Multiply Group will lead the next phase of growth for Tendam, geared towards further international expansion and development of the group’s omnichannel ecosystem.
Al Arabia Outdoor Advertising
The media vertical of Multiply Group signed a Memorandum of Understanding (MoU) with Al Arabia Outdoor Advertising, setting the stage for the creation of a joint entity dedicated to investing in the global out-of-home (OOH) advertising sector, strengthening global presence and supporting expansion plans into international markets. This collaboration will focus on exploring joint acquisition opportunities and investments in OOH advertising with an emphasis on expansion beyond the MENA regions. The MoU includes a key provision for exploring joint investments in advertising technology and artificial intelligence within the OOH sector as it aligns with the industry's ongoing transformation and emphasizes the development of advanced advertising platforms, including Supply-Side Platforms (SSP), these technologies will enhance the efficiency of reaching targeted advertising segments, improve overall sector sustainability, and integrate with the future of digital advertising.
Saudi Media Company (SMC)
Multiply Group signed a Memorandum of Understanding (MoU) with Saudi Media Company in a significant step towards fostering innovation in the media and advertising industry. The MoU will explore the potential collaboration and mutual investment opportunities in the development of advanced advertising technology platforms. This aligns with Multiply Group’s broader strategy to strengthen and expand its footprint in the media sector. The agreement outlines a framework for collaboration in advancing advertising technology platforms, drive innovation in artificial intelligencepowered advertising solutions, enhance digital capabilities, and expand into high-growth markets in the MENA region. This collaboration focuses on enhancing the advertising industry through strategic investments in research and development, aiming to identify expansion opportunities by investing in complementary sectors that support media and advertising.
AI-Powered MAI Joins Multiply’s Boardroom
Multiply Group appoints an artificial intelligence-powered board observer in a decision designed to embed innovation into corporate governance and decision making. The AI observer, named MAI, will provide the board with real-time data analysis and forward-thinking insights, to enhance strategic decision making, ensuring Multiply Group remains ahead of market trends and industry innovations. The appointment of MAI as a non-voting AI board observer strengthens Multiply Group’s commitment to use cutting-edge technologies to drive transparency, ethical leadership, and strategic growth. MAI is developed in collaboration with Aleria Technology, a leading provider of C-level Executive AI.
Vertical updates
Media and Communications (Viola Communications + Media 247 + BackLite Media)
EBITDA of the vertical doubled as a result of organic growth coupled with the full quarter consolidation impact of Backlite Media (acquired on March 1st, 2024). Viola’s EBITDA doubled QoQ, driven by higher occupancy of Out-of-Home (OOH) media assets. The latest addition to Multiply Media’s portfolio, BackLite Media, has expanded its Landmark series with the introduction of The Oryx sign on Sheikh Zayed Road in Dubai. The Landmark Series features a collection of iconic outdoor advertising structures strategically positioned in key, high-profile locations across Dubai and Abu Dhabi. Backlite’s growth is also a result of the increased focus on programmatic sales and significant growth across static and digital signs.
Mobility
Emirates Driving Company (EDC) reported a 35% year-over-year increase in EBITDA excluding fair value changes, demonstrating sustained strength in operational performance (+10% organic growth) couple with inorganic growth through the acquisition of Excellence. This performance was moderately offset by the implementation of Pillar Two legislation, specifically the Domestic Minimum Top-up Tax (DMTT), which came into effect on 1 January 2025.
Student enrolment increased by 56%, with a recent acquisition accounting for 34% of this growth, significantly expanding the Company’s training capacity and market reach.
Beauty & Wellness (Omorfia)
The vertical’s net profit more than doubled quarter-on-quarter, driven by a 24% organic growth in EBITDA. This was supported by the acquisition of TGC in H1 2024, slightly offset by the inclusion of corporate income tax. Brands under Omorfia Group achieved ~13% year-on-year organic growth, despite the Ramadan period shifting to March. A key milestone for the group was the inauguration of the first Bedashing Beauty Lounge branch in Saudi Arabia, located in Jeddah. This expansion reinforces the group’s ambition to grow across the GCC and enter new and adjacent markets. Omorfia’s combined footprint now stands at 133 owned and operated salons across the UAE and the Kingdom of Saudi Arabia.
Utilities & Energy (PAL Cooling Holding + IEH )
PAL Cooling reported 10% YoY revenue growth as a result of an increase in connected capacity. Pursuing growth, Kalyon Enerji, increased its installed capacity by 149 MW across both solar and wind projects. Moreover, Kalyon secured the right to expand its Karapinar plant, already the largest single solar power plant in Europe, by an additional 520 MW. However, profitability of the vertical was impacted by an AED 24 million share of loss from the Kalyon JV, one of Multiply’s investments under International Energy Holding, on hyperinflation accounting in Turkey and the amortization of last year’s deferred tax asset.
Corporate Social Responsibility (CSR)
Multiply Group seeks to be a force for good by empowering communities where it operates. As part of its ‘Read to Lead’ CSR program, in partnership with Kalimat Foundation, Multiply Group, has sponsored compact libraries filled with Arabic books for Palestinian children residing in Emirates Humanitarian City, Abu Dhabi. The books were delivered during a special visit to the city, attended by Her Excellency Sheikha Lubna Bint Khalid Al Qasimi, Former Minister and Vice President of the Kalimat Foundation Board of Trustees, and representatives from Multiply Group. As part of its Ramadan CSR campaign and in alignment with the UAE's Year of Community, Multiply Group partnered with the Red Crescent to distribute Iftar boxes, and it also sponsored an Iftar tent for the holy month.
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