Aramex Co. - ARMX

A Different Playing Field

Aramex reported total revenue of AED 1.03 billion in 1H2008, a 23.4% increase over the same period last year, and 5.5% above our forecast of AED 979 million. The international express segment of aramex was able to record a 22.8% increase in revenue year-on-year, a result that deviates from the global trend of declining express business. In the terms of profitability, EBITDA increased by 19.1% in 1H2008, year-on-year, to AED 110.6 million—8.6% higher than our forecast of AED 101.8 million. The bottom line grew by 16.9% to AED 74.2 million in 1H2008. This growth was at a slower pace than the growth in EBITDA, due to a 62% decline in interest income.