ETranzact International PLC, a provider of mobile banking and payments services has taken a leap forward as third quarter earnings surged.
The company has been recording tremendous growth at both the top and bottom lines since 2013.
Analysts attribute the stellar performance of the mobile company to the ability of its management to tap into the Nigeria economy using innovative products, focused policies and strong marketing strategies.
For the first nine months through September 2015, eTranzact’s net income increased by 130.06 percent to N541.38 million from N235.32 million in the same period of the corresponding year 2014.
The company’s sales were up by 20.41 percent to N6.31 billion in 2015 as against N5.24 billion the previous year.
ETranzact facilitates mobile banking services of 11 banks through its mobile switching platform, processes over N1 trillion every year and has more than 10 years’ experience processing financial transactions in Africa.
The firm’s net profit margin, a measure of profitability and efficiency jumped to 8.57 percent in 2015 compared with 4.49 percent last year.
Industry players say Nigeria’s young population and huge unbanked citizen’s means there are opportunities for eTranzact to consolidate market share.
The mid- to late-thirties is currently the key demographic for mobile banking, reflecting a sweet spot of technological comfort and relatively high economic activity, driving very high relevance of mobile banking services, and, therefore, the highest adoption rates, according to KPMG 2015 report on global mobile banking.
Further analysis of the eTranzact’s financial statement shows cost of sales increased by 11.51 percent and operating expenses were up by 24.43 percent to N1.03 billion.
Cost of sales ratio reduced to 72 percent in 2015 from 77 percent last year; this means for every N100 the company generated in sales, it spent N72 on production costs in generating those sales.
Gross profit increased by 53.04 percent while operating profit moved by 118.73 percent to N726.65 million.
Total assets also jumped by 10.73 percent to N5.16 billion.
The firm’s return on equity (ROE) jumped to 16.33 percent in the period under review from 7.89 percent last year.
The company share price closed at N2.70 on the floor of the exchange while market capitalization was N11.34 billion.
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