eTranzact International Plc remained profitable in 2025, posting a profit before tax of N4.2 billion, down from N5.02 billion in 2024.
According to the company’s latest unaudited statements on the Nigerian Exchange, the decline came despite a slight increase in revenue.
Higher operating expenses offset the gains despite improved top-line cost efficiency, resulting in softer overall earnings for the year.
Key highlights (FY 2025 vs FY 2024)
- Revenue: N29.8 billion, up 1.08% YoY
- Cost of sales: N15.6 billion vs N18.1 billion
- Gross profit: N14.1 billion, up 24.48% YoY
- Administrative expenses: N9.2 billion, up 50.08% YoY
- Operating profit: N4.0 billion vs N4.8 billion
- Investment income: N258.8 million, up 6.58% YoY
- Profit before tax: N4.2 billion vs N5.02 billion
Driving the numbers
The company’s revenue was generated primarily from its electronic payment processing and switching services.
Of the N29.8 billion revenue recorded for the full year, the fourth quarter contributed N9.8 billion, representing a 30% year-on-year increase, while Q4 pretax profit stood at N802.3 million.
Cost of sales declined significantly to N15.6 billion in FY2025 from N18.1 billion in the prior year, reflecting improved cost efficiency.
- Despite modest revenue growth, this reduction supported a strong increase in gross profit to N14.1 billion, compared with N11.3 billion in 2024.
On the expense side, operating costs rose sharply.
- Administrative expenses surged 50.08% to N9.2 billion, while selling and marketing expenses jumped 119.5% to N930.8 million, exerting pressure on profitability.
As a result, operating profit declined to N4.0 billion, down from N4.8 billion in the previous year.
After accounting for finance costs of N19.2 million and a more favorable investment income of N258.8 million, profit before tax settled at N4.2 billion, compared with N5.02 billion in 2024.
Balance sheet position
On the balance sheet, total assets rose sharply by 92% to N46.1 billion, largely driven by cash and cash equivalents, which accounted for N31.6 billion of the total.
Shareholder equity strengthened to N16.6 billion, supported by an increase in retained earnings to N4.7 billion from N2.8 billion a year earlier.
However, total liabilities increased significantly, rising to N29.5 billion from N9.1 billion in the prior year.
Market reaction
The market likely reacted positively to the results.
- eTranzactshares have gained over 7% as of mid-trading on 4 February 2026, priced above N18.
While earnings declined year on year, the market appears to be pricing in the company’s sustained profitability and stronger balance sheet, rather than focusing solely on the drop in pretax profit.
