Multiplay Group's Stellar Q2 Profits Soar to AED 214 Million

Multiplay Group Posts Strong Q2 Growth Despite Currency Headwinds

UAE-based Multiplay Group delivered robust second-quarter results with net profits of AED 214 million and 39% revenue growth, showcasing the resilience of diversified business models in the Gulf's evolving economy. While currency fluctuations from European operations created some volatility, the company's core performance across multiple sectors demonstrates the strength of integrated operational strategies in today's market.

Financial Performance Highlights Strong Operational Momentum

Multiplay Group's Q2 2025 results paint a picture of a company firing on multiple cylinders. The AED 214 million in net profits, excluding fair value variations, represents solid execution across the group's diversified portfolio. More telling is the 39% year-on-year revenue surge to AED 503 million, driven by growth across all business segments.

The company's operational efficiency improvements are evident in its 52% gross profit margin, which remained robust despite inflationary pressures affecting many sectors. Net profits from subsidiaries jumped 52%, indicating that the group's decentralized approach to business management is paying dividends.

Strategic Acquisitions Fuel Expansion

The quarter saw Multiplay complete the full integration of The Grooming Company Holding and acquire Excellence Driving Training Center, moves that directly contributed to revenue growth. These acquisitions reflect a broader trend among Gulf conglomerates to consolidate market positions in consumer-facing sectors, particularly as regional economies diversify away from oil dependence.

Currency Volatility Exposes International Risk

The standout concern comes from the Calyon Energy joint venture, where euro-denominated loan revaluations created currency-related losses that reduced overall performance by AED 132 million. This highlights a growing challenge for UAE companies expanding internationally: managing currency exposure in an era of volatile exchange rates and divergent monetary policies.

When excluding the Calyon impact, group EBITDA rose 38% year-on-year, and operating profits before interest, taxes, depreciation, and amortization surged 69%. This underlying strength suggests the currency headwinds are more of a temporary accounting issue than a fundamental business problem.

Digital Transformation Drives Operational Excellence

CEO and Managing Director Samia Bouazza emphasized the company's focus on operational integration and digital transformation initiatives. This strategy mirrors successful approaches by other regional conglomerates like Majid Al Futtaim and Emaar, which have leveraged technology to create synergies across diverse business lines.

The emphasis on digital transformation comes at a crucial time, as UAE businesses position themselves for the post-oil economy. Companies that can successfully integrate operations across sectors while maintaining high margins are likely to outperform in the coming years.

Market Implications and Investment Outlook

With total assets reaching AED 43 billion as of June 30, 2025, Multiplay represents the type of diversified, well-capitalized entity that tends to thrive during economic transitions. The company's ability to maintain strong margins while growing rapidly suggests pricing power and operational efficiency that should attract institutional investors.

The reported net profits of AED 532 million, including AED 318 million in unrealized gains from revaluations driven by cyclical market fluctuations, indicate significant asset appreciation within the portfolio. For investors, this suggests both current profitability and potential future value realization.

The combination of strong organic growth, successful acquisitions, and robust margins positions Multiplay as a beneficiary of the UAE's economic diversification strategy, though international expansion will require more sophisticated currency hedging strategies going forward.