The MM Group for Industry and International Trade (MTI) has reported that its financial results for the second quarter (Q2) of 2020 have fallen short of expectations.
The company reported a bottom-line of EGP 103m, down 13% year-on-year (y-o-y), and down 2.9% quarter-on-quarter (q-o-q), beating consensus but short of estimate for the quarter. MTI also reported that its gross profit margin (GPM) improved 3.2pps y-o-y, but remained flat q-o-q,
The company reported a top-line of EGP 2.1bn, reflecting a 13.8% decline y-o-y, and a 5.4% decline q-o-q. The drop in revenues was a result of lower sales from the consumer electronics segment, which brought in revenues of EGP 1.39bn reflecting a decline of 28.0% y-o-y, and 3% q-o-q.
It also reported lower sales in the telecoms segment, with revenues down 12.5% y-o-y, and 4.4% q-o-q, as demand shifted from scratch cards towards electronic payments platforms.
The automotive business, however, reported a strong performance as revenues surged by 178.7% y-o-y. The non-banking financial services company Ebtikar continued to report strong results as revenues from the electronic payment platforms Bee and Masary, combined, showed a growth in transaction value of 10% y-o-y.
Tamweel also showed strong y-o-y performance with its portfolio growing by 39% y-o-y, new loan originations increasing 28% and net interest income rising 20%.
