Prime Holding [EGX: PRMH]
Earnings Release
Full Year & Q4 FY21
www.primegroup.org | 1 |
Sunday, February 27, 2022
Prime Holding Announces FY21 Results
- Total Fees & Commission Revenues exhibited a 37% growth, chalking up EGP89mn in FY21; whereas Q4 FY21 Total Fees & Commission recorded EGP16.2mn, corresponding to a YoY decrease of 10%
- Consolidated Revenues showed a 28% YoY growth, registering EGP100.6mn in FY21, while Q4 FY21 Consolidated Revenues displayed a 7% YoY decline, reading EGP19.8mn
- Operating losses recorded EGP43.8mn in FY21, compared with EGP33.4mn a year ago
- Q4 FY21 Operating losses shrank by 28%, reading EGP12.7mn vs. EGP17.6mn a year earlier
- FY21 Net Earnings were a negative EGP56.6mn as opposed to a negative EGP24.5mn in the comparable period
- Q4 FY21 Net Earnings recorded a negative EGP21.7mn compared with a negative EGP7.2mn a year ago
Key Financial Highlights
I. Revenue Analysis
- Prime Holding remains on the fast growth track, as most investment bank activities exhibited a substantial revenue growth over the year, while the kickoff of the NBF operation in Q1 FY21, buttressed the momentum with an 11% contribution to Consolidated Revenues. Meanwhile, during the fourth quarter of the year, revenues slipped YoY on lower Brokerage Revenues triggered by adverse stock market conditions, coupled with the negative effect of reversing unrealized Financial Advisory Revenues.
FY21 Consolidated Revenues
EGP100.6mn
Brokerage | EGP49.1mn |
Asset Mgt. | EGP15.9mn |
Capital Mkt &Tr. | EGP11.6mn |
Custody | EGP6.4mn |
Fin. Advisory | EGP5.6mn |
Mgt. Services | EGP631k |
NBF | EGP11.3mn |
- Total Fees & Commission Revenues added a solid 37%, recording EGP89mn in FY21 versus EGP65.1mn in FY20. In Q4 FY21, Total Fees & Commission revenues exhibited a 10% YoY drop, recording EGP16.2mn compared with EGP18mn; whereas on a quarterly basis, the decrease stood at 30%.
- The brokerage activity delivered a decent performance in FY21, as Brokerage Revenues demonstrated a 27% growth, evolving to EGP49.1mn as opposed to EGP38.5mn in FY20. Meanwhile, Q4 FY21 Brokerage Revenues registered EGP9mn versus EGP12.3mn in Q4 FY20, implying a 27% decline, in view of unfavorable stock market conditions. Furthermore, on a QoQ basis, Brokerage Revenues contracted by 42% .
- The Asset Management arm reported a spectacular 61% upsurge in revenues, registering EGP15.9mn in FY21 compared with EGP9.9mn in FY20. The majority of the growth is attributable to high performance fees. Q4 FY21 Asset Management Revenues came in at EGP3.7mn, corresponding to a 51% YoY rise and a 461% QoQ expansion.
- The financial advisory business generated EGP5.6mn of revenues in FY21, 52% down from EGP11.6mn a year earlier, on smaller executed transaction size. It is worthy to mention that Q4 FY21 Financial Advisory Revenues were affected by the reversal of unrealized Financial Advisory Revenues.
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Sunday, February 27, 2022
- Custodian Revenues advanced 44%, reaching EGP 6.4mn in FY21 as opposed to EGP4.5mn in FY20. Such a solid growth stems from a 17% growth in the size of assets under custody, standing at EGP17.1bn as of December 31, 2021 vs. EGP14.6bn a year ago. Moreover, in Q4 FY21, Custodian Revenues saw a significant YoY increase of 17%, reading EGP1.2mn up from EGP1.1mn in Q4 FY20. On a quarterly basis, Custodian Revenues plummeted 38%.
Assets under Custody (EGP'bn)
17.5 | 17.1 |
17.0 |
Quarterly Custodian Revenues(EGP'mn)
7.0 | 6.4 |
16.5 | 16.2 | |
16.0 | ||
15.5 | 15.4 | 15.4 |
- 14.6
14.0 13.5 13.0
Assets under custody (EGPbn) | ||||
Dec-20 | Mar-21 | Jun-21 | Sep-21 | Dec-21 |
6.0 | |||||||
5.0 | 4.5 | ||||||
4.0 | |||||||
3.0 | |||||||
2.0 | 1.8 | 2.0 | 2.0 | ||||
1.2 | 1.2 | ||||||
0.8 | 0.8 | 1.0 | |||||
1.0 | |||||||
- | |||||||
Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 | 2020 | Q1 FY21Q2 FY21 Q3 FY21Q4 FY21 | 2021 |
- Capital Market & Treasury Revenues dropped 16%, reading EGP11.6mn in FY21 vs. EGP13.7mn in FY20, as funds available for investment were mostly directed to investment in the NBF startup, Prime FinTech. Meanwhile, Q4 FY21 Capital Markets & Treasury Revenues showed a 10% improvement, as they came in at EGP3.6 mn up from EGP3.3mn in Q4 FY20. Furthermore, on a QoQ basis Capital Markets & Treasury Revenues hiked 33%.
- The NBF arm, Prime FinTech, which commenced operation at the end of February 2021 through its first operating company, Endorse, delivered EGP11.3mn of revenues in FY21, whereas its Q4 FY21 revenues registered EGP3.5mn, representing a QoQ rise of 8%.
- The abovementioned developments were reflected in a 28% YoY growth in Consolidated Revenues, registering EGP100.6mn in FY21 compared with EGP78.8mn in the comparable period. Q4 FY21 Consolidated Revenues recorded EGP19.8mn, corresponding to a 7% YoY decrease and a 24% QoQ decline.
All figures are in EGP'000 unless otherwise stated | Q4 FY21 | Q3 FY21 | Q4 FY20 | QoQ | YoY | FY20 | FY21 | YoY | ||
Asset Management Revenues | 3,736 | 666 | 2,473 | 461% | 51% | 9,917 | 15,944 | 61% | ||
Management Service Revenues | 233 | 160 | 133 | 46% | 75% | 539 | 631 | 17% | ||
Brokerage Revenues | 8,992 | 15,401 | 12,331 | -42% | -27% | 38,545 | 49,126 | 27% | ||
Custody Revenues | 1,229 | 1,989 | 1,051 | -38% | 17% | 4,484 | 6,438 | 44% | ||
Financial Advisory Revenues | (1,431) | 1,891 | 1,963 | na | na | 11,592 | 5,615 | -52% | ||
Total Investment Bank Fees & Commissions | 12,759 | 20,106 | 17,951 | -37% | -29% | 65,077 | 77,754 | 19% | ||
- | ||||||||||
NBF Revenues | 3,450 | 3,200 | - | 8% | NA | - | 11,283 | NA | ||
Total Fees & Commission Revenues | 16,209 | 23,306 | 17,951 | -30% | -10% | 65,077 | 89,037 | 37% | ||
Capital Market & Treasury Revenues | 3,637 | 2,737 | 3,307 | 33% | 10% | 13,700 | 11,556 | -16% | ||
Consolidated Revenues | 19,846 | 26,043 | 21,258 | -24% | -7% | 78,777 | 100,593 | 28% |
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Q4 FY21 Revenues by Activity (EGP'mn)
14.0 | ||||||||||
12.3 | ||||||||||
12.0 | ||||||||||
10.0 | 9.0 | |||||||||
8.0 | ||||||||||
6.0 | ||||||||||
4.0 | 3.7 | 3.5 | 3.3 | 3.6 | ||||||
2.5 | ||||||||||
2.0 | ||||||||||
1.2 | ||||||||||
2.0 | 1.1 | |||||||||
0.1 | 0.2 | 0.0 | ||||||||
0.0 | ||||||||||
Asset | Management | Brokerage | Custody | Financial | NBF | Capital Market & | ||||
-2.0 | Management | Services | Advisory | Treasury | ||||||
-1.4 | ||||||||||
-4.0 | ||||||||||
Q4 FY20 | Q4 FY21 |
Sunday, February 27, 2022
FY21 Revenues by Activity (EGP'mn)
60.0 | |||||||||
50.0 | 49.1 | ||||||||
40.0 | 38.5 | ||||||||
30.0 | |||||||||
20.0 | 15.9 | 13.7 | |||||||
11.6 | 11.3 | 11.6 | |||||||
9.9 | |||||||||
10.0 | 4.5 | 6.4 | 5.6 | ||||||
0.5 | 0.6 | 0.0 | |||||||
0.0 | |||||||||
Asset | Management Brokerage | Custody | Financial | NBF | Capital Market | ||||
Management | Services | Advisory | & Treasury | ||||||
FY20 | FY21 |
FY20 Fees & Commission Breakdown
Asset | |
Financial | Management, |
15% | |
Advisory, 18% | |
Management | |
Services, 1% | |
Custody, 7% |
FY21 Fees & Commission Breakdown
Asset | ||
NBF, 13% | Management, | |
18% | ||
Financial | ||
Advisory, 6% | Management | |
Services, 1% | ||
Custody, 7% |
Brokerage, 59%
Brokerage, 55%
FY20 Revenue Breakdown
Asset | ||
Asset | ||
Capital Mkts & | Management, | |
Management, | ||
Capital Mkts & | 13% | Management |
13% | ||
Treasury, 17% | Management | |
Treasury, 17% | Services, 1% | |
Services, 1% | ||
Financial | ||
Financial | ||
Advisory, 15% | ||
Advisory, 15% | ||
Brokerage, 49% | ||
Brokerage, 49% | ||
Custody, 6% | ||
Custody, 6% |
FY21 Revenue Breakdown
Asset | |
Asset | |
NBF, 11% | Management, |
Management, | |
NBF, 11% | 16% |
16% | |
Management | |
Capital Mkts & | Management |
Services, 1% | |
Capital Mkts & | Services, 1% |
Treasury, 11% | |
Treasury, 11% | |
Financial | |
Financial | |
Advisory, 6% | |
Advisory, 6% | |
Custody, 6% | |
Custody, 6% | |
Brokerage, 49% | |
Brokerage, 49% |
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Sunday, February 27, 2022
II. Cost Analysis
- As Prime Holding endeavors to enhance profitability , it managed to curtail its investment bank Operating Expenses by 12% in FY21. However, the Operating Expenses related to the newly launched NBF activities, constituting 31% of Total Operating Expenses, spurred higher Operating Expenses in FY21.
- On a quarterly basis, Q4 FY21 witnessed a significant reduction in NBF Operating Expenses, mirroring in a handsome reduction in Consolidated Operating Expenses on both YoY and QoQ bases.
FY21 Operating Expenses
EGP144.4mn
Staff | EGP95.4mn |
Other G&A. | EGP28.4mn |
Interest Expense | EGP14.6mn |
Depreciation | EGP6mn |
- Standing at EGP144.4mn in FY21, Operating Expenses showed a YoY increase of 29% over the FY20 figure of EGP112.2mn. Meanwhile, the Operating Expenses/Revenues ratio slightly rose to 144% compared with 142%.
- Q4 FY21 Operating Expenses showed a strong improvement, as they slid 16% YoY to EGP32.6mn down from EGP38.9mn, on the back of 25% lower Staff Expenses and 24% lower Other G&A. This culminated in the Operating Expenses/Revenues ratio drop to 164% from 183% a year earlier. With respect to quarterly performance, Q4 FY21 Operating Expenses declined 17% QoQ, on the heels of lower NBF Staff Expenses in addition to lower Interest Expense incurred by the brokerage arm.
- In FY21, Staff Expenses added 16%, reading EGP95.4mn in FY21 versus EGP82.3mn in the comparable period. Nevertheless, due to the robust revenue increase, the Staff Expenses/Revenues ratio dropped to 95% down from 105%. Also, due to the abovementioned reduction of Q4 FY21 Staff Expenses, the Staff Expenses/Revenues ratio decreased to 103% in Q4 FY21 as opposed to 128% a year ago.
- As for quarterly Staff Expenses, they showed an 18% QoQ decrease. Yet, the Staff Expenses/Revenues ratio spiked by 700 bps, in light of the revenue slowdown.
- As far as Other G&A are concerned, they displayed a 28% YoY increase, registering EGP28.4mn in FY21 up from EGP22.1mn a year ago. Meanwhile, the Other G&A/Revenues ratio remained as is at 28%. Throughout the fourth quarter, Other G&A recorded EGP7.1mn, representing a 24% drop from the Q4 FY20 Other G&A figure of EGP9.3mn, and a 1% increase from the Q3 FY21 figure of EGP7mn. As such, Other G&A/Revenues read 36% up compared with 44% a year ago and versus 27% in the previous quarter. The aforementioned improvement is due to a collective decrease in Other G&A items, in reflection of the group's effort towards cost efficiency.
All figures are in EGP'000 unless otherwise stated | Q4 FY21 | Q3 FY21 | Q4 FY20 | QoQ | YoY | FY20 | FY21 | YoY |
Staff Expenses | (20,421) | (24,902) | (27,107) | -18% | -25% | (82,346) | (95,437) | 16% |
Other SG&A | (7,125) | (7,033) | (9,335) | 1% | -24% | (22,123) | (28,356) | 28% |
Interest Expense | (3,471) | (5,895) | (1,286) | -41% | 170% | (4,005) | (14,602) | 265% |
Depreciation | (1,578) | (1,569) | (1,156) | 1% | 36% | (3,678) | (6,027) | 64% |
Operating Expenses | (32,594) | (39,399) | (38,884) | -17% | -16% | (112,152) | (144,422) | 29% |
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Prime Holding for Financial Investments SAE published this content on 01 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2022 09:57:01 UTC.