eTranzact International Plc, a prominent Nigerian payments provider, has recorded a major revenue milestone as per their financial report for the first half of 2023. Its strong financial performance in the first half of 2023 has surprised market experts.

According to MarketScreener, the company reported an unaudited ₦1.01 billion profit, a 149% increase over the exact period in 2022 which saw the company earn ₦408 million in unaudited profit. The Nigerian payments provider’s earnings far surpassed its own projections, with its half-year profit above the predicted ₦582 million for the third quarter of 2023.

A similar pattern was seen in terms of revenue, with eTranzact generating ₦17.37 billion in the first half of 2023, a 49.37% increase from the result of the 2022 H1 and above the predicted net revenue of ₦9.13 billion for September 30, 2023.

One of the main reasons for eTranzact’s success has been its novel approach to payment processing. Through its SwitchIT switching services, the company conducted transactions worth more than ₦50 trillion in 2022 alone.

This achievement was supported by a 99% success rate and sustained uptime in all of its service offerings throughout the year. According to the CEO, Olaniyi Toluwalope, the value of transactions rose from the ₦31 trillion it generated in 2021, and the service’s ability to minimize service downtime bolstered customer satisfaction.

The company’s gross profit for this period surged to an impressive ₦3,3 billion, showcasing an impressive growth rate of approximately 72.47% when compared to its gross profit of ₦1,9 billion during the same timeframe in 2022.

In terms of administrative expenses, eTranzact seems to be exhibiting prudent financial management that contributed to sustaining a healthy financial trajectory. In the first half of 2023, the company’s administrative expenses totalled ₦1,9 billion, whereas, in the first half of 2022, these expenses amounted to ₦1,4 billion.

In the first half of 2023, the company achieved a profit before tax of ₦1,4 billion, a notable ascent from the corresponding period in 2022, during which the company recorded a Profit before tax of ₦601 million.

Also, the company achieved an impressive operating profit of ₦1,3 billion in the first half of 2023, reflecting a substantial growth from its operating profit of ₦476 million in the same period of 2022. This represents a remarkable percentage increase of approximately 185.25%.

eTranzact financial results over the years from 2018 – 2021

While eTranzact’s route to growth has included remarkable accomplishments, it has also included periods of financial difficulty. The company had difficulties, including an alleged ₦11 billion fraud incident in 2018 that was carried out on one of its platforms.

According to the report, the company posted a loss after taxes of ₦3.1 billion that year, compared to a profit after taxes of ₦208 million in 2017. In 2019, the company started to pull itself together.

In the first half of 2019, it reported a profit after tax of ₦96 million, compared to a loss after tax of ₦231.8 million in the corresponding period in 2018. Revenue increased to ₦6.4 billion in H1 2019 from ₦4.2 billion in H1 2018.

However, in Q1 of 2020, eTranzact International Plc reported a substantial loss of ₦182.5 million, marking a stark contrast to the ₦90.75 million profit achieved in the same period of 2019. Despite a 5.81% increase in revenue from ₦5.59 billion in Q1 2019 to ₦5.91 billion in Q1 2020, the company faced significant losses due to elevated administrative and operational costs.

Gross profit experienced a notable decline, plummeting by 50.75% from ₦518.7 million in 2019 to ₦255.4 million in 2020. This trend stemmed from an 11.6% surge in the cost of sales, escalating from ₦5.07 billion in 2019 to ₦5.65 billion in 2020.

In September of that same year, Technext reported that eTranzact lost 100% of the ₦96.09 million profit it realized in Q2 2019 and incurred an additional loss of ₦22.16 million, par an unaudited financial report posted on the portal of the Nigerian Stock Exchange.

However, 2021 seemed like a good year as eTranzact International Plc reported a profit of ₦455.7 million compared to a deficit of ₦1.9 billion in 2020 in its financial statements. The company’s revenue also increased by 3.7% to ₦23.6 billion in 2021 from ₦22.7 billion in 2020.