Update shared on30 Jul 2025
eTranzact Plc Sustains Profitability Momentum with 18% PAT Growth in H1 2025
eTranzact International Plc delivered a solid 18% year-on-year increase in Profit After Tax (PAT) to N1.51bn for the half-year ended June 30, 2025, driven by enhanced operational efficiency and disciplined cost management. While Q2 revenue dipped marginally to N5.38bn (from N5.51bn in Q2 2024), the company’s ability to expand gross profit by 40.6% to N6.44bn demonstrates improved cost structure and scalability of its payment infrastructure.
The fintech company’s operating profit rose 20% to N2.1bn, reflecting stronger core performance and a leaner expense base. Net finance costs were well-controlled, supporting bottom-line resilience. The growth in retained earnings by 52% to N4.41bn underscores the strength of internal capital generation and supports potential for future reinvestment or dividend payout.
With total assets now at N25.4bn and shareholders’ equity increasing to N16.38bn, eTranzact’s balance sheet has grown healthier, suggesting improved investor confidence and strategic positioning in the evolving Nigerian digital payments ecosystem.
Strengths:
- Consistent profit growth (+18% YoY in PAT)
- Strong gross profit margin improvement, up 40.6% YoY
- Operating efficiency gains amid flat revenue in Q2
- Robust retained earnings growth (+52%) signals strong internal capital base
- Low financial leverage and stable finance costs support sustainable earnings
Weaknesses:
- Flat to declining Q2 revenue could indicate short-term demand pressures or customer churn
- Modest top-line growth relative to peers in a fast-growing fintech sector
- Limited disclosure on revenue breakdown across service lines (e.g., switching, mobile, agency banking)
Disclaimer
The user WaneInvestmentHouse holds no position in NGSE:ETRANZACT. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.