Executive Summary
eTRANZACT International Plc delivered a resilient performance for the nine months ended September 30, 2025, supported by robust transaction volumes, digital payments growth, and strategic operational efficiency. The Group recorded improved revenue and profitability, highlighting the resilience of its fintech platform despite macroeconomic challenges. Group revenue for 9M 2025 declined slightly to ₦20.11 billion from ₦21.92 billion in 9M 2024 (-8%), largely due to moderated transaction processing volumes. Despite this, gross profit increased to ₦9.91 billion (+34% YoY), reflecting improved cost management and operational efficiency.
Operating profit rose 9% YoY to ₦3.14 billion, supported by disciplined administration and marketing spend. Net finance income and investment gains contributed ₦312 million, enhancing pre-tax profitability. Profit Before Tax grew 12% YoY to ₦3.44 billion, while Profit After Tax stood at ₦2.41 billion, a 12% increase over the prior period. The Group’s balance sheet remained strong, with total assets of ₦25.44 billion and total equity of ₦16.13 billion, providing ample liquidity and capacity for future digital platform investments.
Financial Highlights – Statement of Profit or Loss
₦’ million 9M 2025 9M 2024 % Δ
Revenue 20,114 21,924 -8%
Cost of Sales (10,209) (14,528) -30%
Gross Profit 9,905 7,396 +34%
Operating Profit 3,142 2,892 +9%
Finance Cost (15) (20) -25%
Investment Income 312 186 +68%
Profit Before Tax 3,439 3,058 +12%
Taxation (1,032) (917) +13%
Profit After Tax 2,407 2,141 +12%
Basic EPS (Kobo) 327 292 +12%
Revenue Performance
- Total revenue for 9M 2025 slightly declined (-8% YoY) due to lower transaction processing volumes and moderated fee income.
- Cost of sales reduced 30% YoY, driving strong gross profit growth (+34% YoY).
- Investment income increased 68% YoY, reflecting higher returns from financial investments.
- Selling and marketing costs rose 215% YoY for the quarter but remained controlled relative to revenue growth.
Profitability and Margins
- Gross margin improved to 49%, reflecting operational efficiency and cost optimization.
- Operating profit margin strengthened to 16%, driven by disciplined cost management.
- PBT margin improved to 17%, with net finance income contributing to overall profitability.
- Effective tax management resulted in a stable PAT margin of 12%.
Balance Sheet Overview
₦’ million 30-Sep-25 31-Dec-24 % Δ
Non-current assets 4,107 3,147 +30%
Current assets 21,328 20,853 +2%
Total assets 25,435 24,001 +6%
Total equity 16,128 14,871 +8%
Total liabilities 9,307 9,130 +2%
Cash & cash equivalents 12,471 12,652 -1%
Interpretation
- Total assets grew 6% YoY, supported by higher investment in property, plant & equipment and strategic digital platform assets.
- Equity increased 8% YoY, reflecting retained earnings accumulation and improved profitability.
- Strong liquidity maintained with cash balances of ₦12.47 billion, supporting operations and potential platform expansion.
- Current liabilities remained stable, ensuring manageable working capital requirements.
Key Ratios & Indicators
Metric 9M 2025
Revenue Growth -8%
Gross Margin 49%
Operating Margin 16%
PBT Margin 17%
PAT Margin 12%
EPS Growth +12%
Asset Growth +6%
Equity Growth +8%
ROE 15%
Strategic Insights
- Operational efficiency in digital payments and fintech services underpins sustainable profit growth.
- Increased investment income and strong cash position support strategic platform expansion.
- Focus on cost optimization and marketing effectiveness enhances margins.
- Strong balance sheet positions eTRANZACT for future product innovation and acquisitions.
Strengths
- Robust profitability and margin expansion.
- Strong cash generation and liquidity position.
- Improved gross and operating margins.
- Strategic investment income contributes to diversified earnings.
Weaknesses
- Revenue slightly declined YoY due to moderated transaction volumes.
- Marketing costs for Q3 surged relative to prior periods.
- Dependence on digital transaction volumes exposes revenue to market fluctuations.
Outlook
eTRANZACT is well-positioned to sustain profitability through digital transaction growth, strategic investments, and operational efficiency. The Group’s strong liquidity and equity base enable future platform expansion, while careful cost management will preserve margins. Continued focus on innovation in payment services is expected to drive revenue stabilization and growth.
Analyst View
“eTRANZACT delivered a solid 9M-2025 performance with strong profitability and operational efficiency despite slightly lower revenue. Robust cash reserves and strategic investments position the Group to capitalize on the growing digital payment ecosystem in Nigeria.”
Conclusion
The Group sustained financial stability and profit growth in 9M-2025 through disciplined cost management, investment income, and operational efficiency. With a healthy balance sheet, eTRANZACT is positioned for continued growth in digital financial services and shareholder value creation.
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Disclaimer
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