The market value of Egyptian fintech founder Ashraf Sabry’s stake in Fawry for Banking Technology and Electronic Payments (Fawry) has increased by more than $1.6 million in the past 38 days, as shares in the leading fintech company surged by double digits despite reporting a decline in earnings in the first half of 2022.
Sabry, Fawry’s managing director, who launched the payment platform in 2008 and pioneered electronic bill payments in Egypt, controls 2.345 percent of the company, or 40,036,282 shares.
Under his leadership, Fawry has grown into a powerhouse African tech firm, with more than 29.3 million monthly users. Its technology provides more than 250 e-payment services through a network of over 105,000 service points in 300 Egyptian towns.
Shares in the Egyptian fintech service provider concluded trading on Wednesday at EGP3.63 ($0.189) a share, 3.63-percent lower than their opening price this morning, as investors continued to book profits in its shares after the share price climbed above EGP4 earlier this week.
Since July 18, the company’s shares have climbed by 27.8 percent, from EGP2.84 ($0.148) to EGP3.63 ($0.189) at the time of writing.
The market value of Sabry’s shareholding in Fawry has risen by EGP31.63 million ($1.65 million) as a result of recent increase in the share price, from EGP113.7 million ($5.93 million) on July 18 to EGP145.33 million ($7.58 million) at the time of writing this report.
The $1.65-million increase in the market value of his stake cements his position as one of the richest investors on the Egyptian Stock Exchange. It comes on the heels of a significant decline in Fawry’s earnings in the first half of 2022.
Fawry’s profit fell by 28.5 percent from EGP137.15 million ($7.16 million) in the first half of 2021 to EGP98.04 million ($5.12 million) in the first half of 2022 despite a double-digit increase in revenue from EGP742.56 million ($38.78 million) to EGP1.01 billion ($52.7 million), according to recently published financial results.
The reduction in the firm’s profit can be attributed to a sustained increase in the company’s operating expenses, with administrative expenses exceeding EGP265 million ($13.83 million) and marketing expenses surpassing EGP180 million ($9.4 million).