eTranzact Announces N4.8bn Full-year profit For 2024, Declares Dividend

eTranzact International Plc has reported a pre-tax profit of ₦4.8 billion for the financial year ending December 31, 2024, reflecting an impressive 53.2 percent growth compared to the ₦3.1 billion recorded in 2023.

This surge in profitability comes despite an 11.82 percent decline in revenue, which fell from ₦33.9 billion to ₦29.8 billion, largely due to a drop in mobile airtime sales.

The company’s ability to sustain profit growth amid revenue contraction underscores the strength of its core operations. Profits from these operations climbed to ₦4.6 billion, a 48.83 percent increase from the previous year’s ₦3.1 billion. Additionally, earnings per share (EPS) rose from ₦0.24 to ₦0.37, signaling improved profitability per unit of stock.

Cost Optimisation and Strategic Gains

A notable factor behind eTranzact’s profit growth was a sharp decline in its cost of sales, which dropped by 27.55 percent from ₦25.5 billion to ₦18.5 billion. This reduction, coupled with a 36.52 percent increase in gross profit (₦11.3 billion vs. ₦8.3 billion in 2023), highlights the company’s effective cost-management strategies.

However, operational expenses increased. Selling and marketing expenses rose by 58.06 percent to ₦424 million, driven by branding and promotional initiatives. Administrative expenses also climbed by 29.06 percent to ₦6.3 billion, primarily due to employee and operating costs.

Despite these cost increases, interest income surged by 158.26 percent to ₦242.9 million, fueled by returns on bank deposits. Other income, including foreign exchange gains, also saw a 31.4 percent increase, totaling ₦10.9 million.

Balance Sheet Strength and Dividend Declaration

eTranzact’s total assets declined by 14.91 percent, falling to ₦24 billion from ₦28.2 billion. This was primarily due to a reduction in current assets, which dropped from ₦26 billion to ₦20.8 billion, reflecting a decrease in cash and short-term deposits.

On the other hand, non-current assets rose from ₦2.1 billion to ₦3.1 billion, driven by investments in property, plants, and equipment, which now account for ₦2.5 billion of the company’s asset base.

A key highlight is the turnaround in retained earnings, which improved significantly to ₦2.8 billion, recovering from a negative balance of ₦496.6 million in 2023. This improvement, coupled with a 29.56 percent increase in total equity (₦14.8 billion vs. ₦11.4 billion in 2023), signals strong financial health.

In recognition of its solid performance, eTranzact has declared a final dividend of 12.5 kobo per 50 kobo share, payable to shareholders whose names appear on the register of members as of July 7, 2025.

eTranzact’s strong profit growth, despite a revenue dip, highlights the company’s resilience and operational efficiency. While the decline in mobile airtime sales poses challenges, the fintech’s focus on core operations, cost reduction, and strategic investments in assets positions it for sustained profitability. The company’s ability to navigate rising operational expenses while improving retained earnings and equity suggests a stable financial outlook for the coming year.