Palms Sports

1. Company Overview & H1 2026 Performance

Palms Sports PJSC reported resilient H1 2026 results, with revenue continuing to grow despite a softer bottom line. The Group operates across sports services, education, security services, physiotherapy, sports rehabilitation, and sports enterprises investment. During the period, revenue increased to AED 568.9 million while the company maintained a strong balance sheet with over AED 1.0 billion in total assets and AED 227.2 million in cash and bank balances.

2. Financial Performance Snapshot

• Revenue: AED 568.9M (+2.1% YoY)

• Gross Profit: AED 98.9M (+10.2% YoY)

• Profit Before Tax: AED 49.2M (-2.3% YoY)

• Net Profit: AED 43.1M (-4.0% YoY)

• Basic EPS: AED 0.29 (vs AED 0.30)

Compared with H1 2025:

• Revenue increased from AED 557.1M to AED 568.9M

• Gross profit improved from AED 89.8M to AED 98.9M

• Profit before tax declined from AED 50.4M to AED 49.2M

• Net profit declined from AED 44.9M to AED 43.1M

3. Operational Highlights & Key Metrics

• Total Assets: AED 1.01B

• Total Equity: AED 593.3M

• Cash & Bank Balances: AED 227.2M

• Trade & Other Receivables: AED 441.8M

• Property & Equipment: AED 90.2M

• Intangible Assets & Goodwill: AED 73.0M

• Investment Portfolio: AED 85.5M

• Bank Borrowings: AED 107.5M

• Dividend Paid During H1 2026: AED 85.1M

4. Key Performance Drivers

Revenue growth was supported by continued expansion across the Group's diversified businesses. Gross profit improved by over 10% year-on-year, although higher general and administrative expenses, a loss from joint ventures, and fair value losses on investments weighed on profitability. Lower finance costs and higher finance income partially offset these pressures during the period.

5. Strategic Highlights & Outlook

Palms Sports continued strengthening its diversified portfolio across sports, education, healthcare, security, and technology businesses. During H1 2026 the Group:

• Maintained investments across multiple strategic subsidiaries and joint ventures.

• Continued investing in education, healthcare, cybersecurity and sports businesses.

• Increased cash generation from operating activities to AED 125.2 million.

• Maintained a solid balance sheet with total equity exceeding AED 593 million despite paying AED 85.1 million in dividends.

The Group's diversified business model and strong operating cash flow continue to support its long-term growth strategy.

6. Investor Takeaway

Palms Sports delivered steady revenue growth and a notable improvement in gross profitability during H1 2026. While net profit softened slightly due to higher operating expenses, investment valuation losses, and weaker contributions from joint ventures, the company continues to generate strong operating cash flow, maintain a healthy balance sheet, and diversify across multiple high-growth sectors. These factors position the Group well for sustainable long-term growth.