FIVE Holdings Reports Strong Q3 Growth, Revenue Soars

FIVE Holdings Achieves Impressive Financial Growth in Q3

FIVE Holdings (BVI) Limited has announced remarkable financial results for the third quarter of the year. With revenue soaring to AED 630 million and an EBITDA of AED 214 million, the company has demonstrated a solid growth trajectory compared to the same quarter last year.

Year-to-Date Performance Reveals Steady Climb

In a broader overview, the year-to-date performance indicates a consistent upward trend, with total revenue of AED 1,531 million and EBITDA amounting to AED 525 million for the nine months concluded in September. This showcases a healthy financial position, with cash and bank balances reaching AED 604 million, including an escrow balance of AED 181 million.

Available Credit Facilities Enhance Liquidity

The company also benefits from an undrawn Revolving Credit Facility of AED 734.5 million and AED 47 million in repurchased bonds, providing further options for enhancing their liquidity as needed. The financial backing remains strong, with borrowings recorded at AED 1,463 million against total assets of AED 10,879 million and total equity of AED 6,556 million as of the end of September.

Exceptional Performance in the Hospitality Segment

One of the most exciting highlights of the quarter was the hospitality segment, which showed outstanding performance, generating AED 507 million in revenue and an EBITDA of AED 187 million. This represents an astonishing 156% increase in both revenue and EBITDA when compared to the same quarter last year.

Pacha Group’s Successful Integration

The Pacha Group, which was recently acquired, has completed its first full operational season under FIVE Holdings’ management, posting a total revenue of AED 409 million for the nine months ending September 30, 2024. This marks a notable 14% rise from the previous year, underscoring the effectiveness of the integration. The EBITDA for this division saw an increase of 11% year-over-year, reaching AED 155 million.

Challenges in Real Estate Development

Conversely, the real estate development segment faced some challenges, recording AED 123 million in revenue for the third quarter, down from AED 148 million in the prior year. Contributing to this decline was the completion of the FIVE LUXE project in 2023, guiding the company towards a strategy that focuses on enhancing hospitality EBITDA and, subsequently, increasing recurring cash flows.

Interactive Investor Conference Call Scheduled

To provide further insights and discuss these results, FIVE Holdings will conduct a conference call for investors, which is set to be led by Founder and Executive Chairman Kabir Mulchandani. This event promises to offer a detailed look into the company’s consolidated performance and future direction.

Frequently Asked Questions

What were the key financial highlights for FIVE Holdings in Q3?

FIVE Holdings recorded a revenue of AED 630 million and an EBITDA of AED 214 million for Q3, marking significant growth from the previous year.

How is the company performing in its hospitality segment?

The hospitality sector excelled, achieving AED 507 million in revenue and AED 187 million in EBITDA, a remarkable increase of 156% year-over-year.

What challenges did FIVE Holdings face in real estate development?

The real estate development segment saw a revenue decline to AED 123 million due to the completion of the FIVE LUXE project, impacting their growth strategy.

When will the company discuss its financial performance with investors?

A conference call for investors is scheduled, where Kabir Mulchandani will discuss the consolidated performance and outlook for the company.

What are the liquidity positions of FIVE Holdings?

The company maintains a strong liquidity position, with cash and bank balances of AED 604 million and access to significant credit facilities.

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