eTranzact International Plc has posted a N1.51 billion profit after tax (PAT) for the six months ended June 2025, an 18 percent increase over the N1.28 billion recorded in the same period last year.
Despite a modest revenue dip, the switching and payment firm saw its gross profit surge 40 percent to N6.44 billion, underscoring a strong improvement in margin control and cost efficiency.
Profit before tax rose to N2.16 billion compared to N1.83 billion in H1 2024, while operating profit rose 20 percent to N2.07 billion, driven by lower cost of sales and improved cost efficiency, even as selling and administrative expenses rose with inflation and increased marketing investments.
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While revenue slipped marginally to N13.28 billion from N14.04 billion, eTranzact offset that by cutting the cost of sales, delivering nearly 50 percent gross margin, and exercising firm control over operating expenses as gross profits surged 40 percent to N6.44 billion.
The pioneering firm’s balance sheet remains healthy, with assets growing to N25.41 billion at mid-year (up 6 percent from N24 billion in December 2024), equity climbing to N16.38 billion, and liabilities trimmed slightly to N9.03 billion. Cash reserves remain robust at N12.5 billion, ensuring strong liquidity for further scaling.
The Board recently projected N5.35 billion in revenue and N1.01 billion in profit after tax for the next three months ending September 2025. The projection assumes N3.52 billion in gross profit, N1.38 billion in operating profit, and N1.44 billion profit before tax, with taxation estimated at N431.76 million. This confidence stems from a strong start to the year after the firm had exceeded its Q1 2025 PAT target of N365 million, posting N830.2 million for the period.
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Analysts have attributed the forecasts to three factors: a sharp improvement in margins driven by cost discipline, targeted reinvestment in digital infrastructure and compliance systems, and a fintech-friendly regulatory environment, heightened by Nigeria’s accelerating transition to cashless payments.
With transaction volumes expected to grow and regional expansion plans underway, eTranzact’s strengthened balance sheet and expanding margins are seen as positioning it for continued earnings momentum in the second half of 2025.
