eTranzact’s nine-month profit after tax declines 42.7% to N1.38 billion

eTranzact International Plc reported a 42.7% decline in profit after tax to N1.38 billion for the nine months ended September 30, 2026, compared with N2.41 billion recorded in the corresponding period of 2025, as rising operating expenses weighed on profitability.

The electronic payment solutions provider’s revenue increased by 4.4% to N20.99 billion from N20.11 billion a year earlier.

However, operating profit fell by 44.4% to N1.75 billion from N3.14 billion, reflecting higher administrative expenses and cost of sales.

The company’s third-quarter performance showed a sharper decline, with profit after tax falling by 80.6% to N156.04 million from N803.96 million in the corresponding quarter of 2025. Revenue for the quarter also declined by 30% to N4.71 billion from N6.74 billion.

Key Highlights

• Revenue: N20.99 billion, up 4.4% from N20.11 billion.
• Gross profit: N9.44 billion, down 4.7% from N9.91 billion.
• Operating profit: N1.75 billion, down 44.4% from N3.14 billion.
• Profit before tax: N1.97 billion, down 42.7% from N3.44 billion.
• Profit after tax: N1.38 billion, down 42.7% from N2.41 billion.
• Cost of sales: N11.55 billion, up 13.1% from N10.21 billion.
• Administrative expenses: N7.20 billion, up 20.3% from N5.99 billion.
• Total assets: N32.21 billion, down from N46.14 billion at December 2025.
• Cash and cash equivalents: N17.15 billion, down from N31.65 billion.
• Total equity: N17.57 billion, up from N16.19 billion.

Driving the numbers

eTranzact’s nine-month performance reflects the pressure of rising operating costs, which outpaced revenue growth during the period.

• Revenue increased by 4.4% to N20.99 billion from N20.11 billion in the corresponding period of 2025. However, the cost of sales rose by 13.1% to N11.55 billion from N10.21 billion, reducing gross profit by 4.7% to N9.44 billion from N9.91 billion.
• The company’s gross profit margin also weakened to approximately 45% from 49.2% a year earlier, indicating that a larger proportion of revenue was absorbed by the cost of delivering its services.
• Administrative expenses rose by 20.3% to N7.20 billion from N5.99 billion, while selling and marketing expenses declined by 36.3% to N494.69 million from N776.67 million.
• The combined effect of higher cost of sales and administrative expenses contributed to a 44.4% decline in operating profit to N1.75 billion from N3.14 billion.
• Investment income also declined by 27% to N228.18 million from N312.39 million, while finance costs reduced to N10 million from N15.04 million.

Consequently, profit before tax fell by 42.7% to N1.97 billion from N3.44 billion. The company’s tax expense declined to N590.96 million from N1.03 billion, while profit after tax settled at N1.38 billion.

The quarterly figures showed a sharper deterioration, with operating profit falling by 84.8% to N154.67 million from N1.02 billion in the corresponding quarter of 2025. Profit before tax also declined by 80.6% to N222.91 million from N1.15 billion.

Balance sheet

On the balance sheet, total assets declined by 30.2% to N32.21 billion as of September 30, 2026, from N46.14 billion at December 31, 2025, largely reflecting a reduction in cash and cash equivalents.

• Cash and cash equivalents fell to N17.15 billion from N31.65 billion, while restricted cash declined to N13.25 billion from N25 billion.
• The company recorded N2.11 billion in net cash generated from operating activities during the nine-month period. However, net cash used in investing activities stood at N16.55 billion. This included a N15.41 billion movement in restricted cash and N1.38 billion spent on property, plant and equipment.

Total liabilities declined to N14.64 billion from N29.95 billion, driven largely by a reduction in trade and other payables, which fell to N13.81 billion from N27.94 billion.

Meanwhile, shareholders’ equity increased by 8.5% to N17.57 billion from N16.19 billion, supported by an increase in retained earnings to N5.60 billion from N4.22 billion.

Market reaction

Shares of eTranzact International Plc fell by 7.39% on Friday, October 30, 2026, closing at N16.30 on the Nigerian Exchange, down from N17.60 recorded in the previous trading session.

The stock shed N1.30 per share, reversing part of the 10% gain recorded on Thursday, October 29, when it rose from N16.00 to N17.60.

The shares traded within a daily range of N15.85 to N16.30, while their 52-week trading range stood between N11.00 and N26.90.