eTranzact Posts Strong Profit Growth Despite Revenue Decline in 2024
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eTranzact International Plc has announced its financial results for the fiscal year ending December 31, 2024, showcasing a substantial increase in profitability despite a drop in overall revenue. The company reported a pre-tax profit of N4.8 billion, marking a 53.20% surge from N3.1 billion in the previous year. This strong performance was driven by operational efficiencies and cost management, offsetting a decline in total revenue.
Revenue and Profitability Trends
The company’s full-year revenue fell by 11.82% year-over-year (YoY) to N29.8 billion, down from N33.9 billion in 2023. The revenue contraction was primarily due to a decline in mobile airtime sales, which dropped to N16.8 billion from N24.8 billion. Despite this setback, profits from core business operations climbed significantly, reaching N4.6 billion compared to N3.1 billion in the prior year.
Other revenue streams showed relative stability, with commissions generating N13 billion, while remittance-related income and maintenance & support services brought in N25.3 million and N17.9 million, respectively.
Cost and Expense Management
A significant reduction in the cost of sales contributed to the company’s improved profit margins. The cost of sales declined by 27.55% to N18.5 billion from N25.5 billion in 2023, primarily due to lower mobile airtime purchase costs, which stood at N16.6 billion.
While gross profit surged by 36.52% to N11.3 billion, the company saw an increase in expenses. Selling and marketing costs rose sharply by 58.06% to N424 million, attributed to intensified branding and promotional efforts. Administrative expenses also grew by 29.06%, reaching N6.3 billion, largely driven by rising employee and operational costs.
Financial Strength and Earnings Growth
Interest income experienced remarkable growth, surging by 158.26% to N242.9 million, primarily from bank deposits. Other income, driven by foreign exchange gains, also increased by 31.40%, totaling N10.9 million. These additional earnings streams bolstered the company’s overall financial position.
Earnings per share (EPS) saw a notable rise, growing from N0.24 in 2023 to N0.37, reflecting a 54.17% improvement in returns for shareholders. Furthermore, eTranzact declared a final dividend of 12.5 kobo per 50 kobo share, payable to shareholders recorded as of July 7, 2025, subject to applicable tax and regulatory guidelines.
Balance Sheet and Asset Overview
Despite strong profitability, total assets declined by 14.91% to N24 billion, down from N28.2 billion in the previous year. This was mainly due to a reduction in current assets, which fell from N26 billion to N20.8 billion, impacted by lower cash reserves and short-term deposits.
On a more positive note, non-current assets saw an increase, rising from N2.1 billion to N3.1 billion. This growth was primarily attributed to higher investments in property, plant, and equipment, which accounted for N2.5 billion of total non-current assets.
Total equity improved significantly, rising by 29.56% to N14.8 billion from N11.4 billion in 2023. This increase was largely driven by a robust share premium of N7.3 billion and a turnaround in retained earnings, which rebounded from a negative balance of N496.6 million to a positive N2.8 billion.
Conclusion
eTranzact International Plc demonstrated resilience in 2024, achieving record profitability despite revenue challenges. Strategic cost-cutting, strong core business performance, and increased non-operational income were key factors in driving financial growth. With an improved equity position and a declared dividend, the company remains well-positioned for sustainable expansion in the coming years.
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