eTranzact International Plc has released its financial report for the year ended December 31, 2024, indicating a pre-tax profit of N4.8 billion.
This represents a 53.20% increase from the pre-tax profit of N3.1 billion reported the previous year, despite a decline in overall revenue.
Revenue for the full year fell from N33.9 billion in 2023 to N29.8 billion in 2024, primarily driven by a decline in mobile airtime sales.
Despite the overall revenue drop, the company reported a significant increase in profits from its core operations, which rose to N4.6 billion compared to N3.1 billion for FY 2023.
The company’s earnings per share grew from N0.24 to N0.37, reflecting an improvement in profitability associated with its common stock.
On the balance sheet, retained earnings improved to N2.8 billion, a notable recovery from a previous negative balance of N496.6 million.
eTranzact also announced a final dividend of 12.5 kobo for every 50 kobo, subject to applicable withholding tax and regulations. This dividend will be payable to shareholders whose names appear on the register of members as of the close of business on July 7, 2025.
Key highlights (2024 vs. 2023)
- Revenue: N29.8 billion, -11.82% YoY
- Cost of Sales: N18.5 billion, -27.55% YoY
- Gross Profit: N11.3 billion, +36.52% YoY
- Selling and Marketing Costs: N424 million, +58.06% YoY
- Administrative Expenses: N6.3 billion, +29.06% YoY
- Operating Profit: N4.6 billion, +48.83% YoY
- Interest Income: N242.9 million, +158.26% YoY
- Other Income: N10.9 million, +31.40% YoY
- Pre-Tax Profit: N4.8 billion, +53.20% YoY
- Earnings per Share: N0.37, +54.17% YoY
- Total Assets: N24 billion, -14.91% YoY
- Retained Earnings: N2.8 billion, -683.24% YoY
Cursory analysis
The company reported a decline in full-year revenue, decreasing to N29.8 billion from N33.9 billion the previous year.
- Mobile airtime sales contributed significantly, totaling N16.8 billion, a drop from N24.8 billion the prior year.
- Other commissions accounted for N13 billion, while remittance-related income and maintenance & support services were minimal, at N25.3 million and N17.9 million, respectively.
The cost of sales also decreased, aligning with the revenue drop, from N25.5 billion to N18.5 billion in FY 2024.
- Notably, costs for mobile airtime purchases comprised a substantial portion, totaling N16.6 billion.
Gross profit increased to N11.3 billion, reflecting a 36.52% rise from N8.3 billion in the previous year.
- On a less favorable note, selling and marketing expenses surged to N424 million, up 58.06%, driven primarily by branding and promotional activities.
- Administrative expenses climbed as well, rising to N6.3 billion from N4.9 billion in 2023, largely due to employee and operating costs.
On the brighter side, profits from core operations reached N4.6 billion, up from N3.1 billion the previous year.
- Interest income soared by 158.26% year-over-year to N242.9 million, mainly from bank deposits.
- Other income also increased by 31.40%, totaling N10.9 million, driven by foreign exchange gains.
Ultimately, pre-tax profit hit N4.8 billion, reflecting a 53.20% year-over-year growth, with earnings per share surging by 54.17%.
Balance sheet analysis
The company’s total assets experienced a decline, dropping to N24 billion from N28.2 billion the previous year, primarily due to a decrease in current assets.
- Current assets fell from N26 billion to N20.8 billion, significantly impacted by a reduction in cash and short-term deposits.
- On a more positive note, non-current assets saw growth, rising from N2.1 billion in 2023 to N3.1 billion for FY 2024. This increase was largely fueled by investments in property, plants, and equipment, which constituted the majority at N2.5 billion.
Total equity, however, presented a more favorable outlook, rising to N14.8 billion, a substantial 29.56% increase from N11.4 billion in the previous year, with the share premium comprising a significant portion at N7.3 billion.
- Within total equity, share capital amounted to N4.6 billion, while retained earnings demonstrated a significant turnaround, reaching N2.8 billion—a recovery from the negative N496.6 million reported in 2023.
