eTranzact International Plc, a leading player in Nigeria’s fast-rising electronic payment industry, has reported a healthy financial performance for the 2024 fiscal year, marking a turnaround that has seen the company restore its retained earnings to a positive position for the first time in six years. This notable achievement has enabled the board of directors to propose a dividend of 12.50 kobo per share, signalling a renewed commitment to enhancing shareholder value in a market increasingly defined by digital transformation.
The company’s resurgence unfolds against a backdrop of a Nigerian economy in 2024 characterised by an interplay of opportunities and formidable challenges. The year witnessed fluctuating oil prices, a depreciating currency, and increasing fiscal deficits. However, the company noted that the continuation of major reforms initiated by the current administration in mid-2023 set the direction for Nigeria’s economy, aiming to stabilise the economy and tackle systemic and structural challenges that have historically impeded growth.
eTranzact’s financial resurgence
Against the macroeconomic backdrop, eTranzact International Plc delivered a standout financial performance in 2024, surpassing results from previous years. The company reported a Profit Before Tax (PBT) of N4.9 billion and a Profit After Tax (PAT) of N3.4 billion. This achievement, the management explained, was made possible through an intensified revenue drive and cost efficiency measures.Notably, this performance ensured that the company’s retained earnings were restored to a positive position, a landmark turnaround after six years of negative retained earnings.
Wole Abegunde, chairman of eTranzact’s board, commended the collective efforts behind this resurgence at the company’s 21st Annual General Meeting (AGM). He stated, “The board, management, and staff have all played a crucial role in delivering this performance.” He expressed confidence in the company’s future trajectory, adding, “With our current momentum, we are confident in our ability to sustain profitability and strengthen our market position.”
The financial highlights underscore the magnitude of the turnaround: Gross profit increased by 36.52 per cent to N11.36 billion; operating profit was up 48.83 per cent to N4.66 billion; profit before tax climbed by 53.20 per cent to N4.897 billion; profit after tax increased by 54.12 per cent to N3.39 billion.
Following the positive financial trend, earnings per share jumped 54.17 per cent, from 24 kobo/share in 2023 to 37 kobo/share in 2024. According to the company, the primary driver of this improved financial performance was a substantial increase in transaction counts/volume and transaction value during the year, with prices remaining relatively stable within the highly regulated industry.
Further to the turnaround in the company’s retained earnings position, the board proposed a dividend of 12.50 kobo to be paid for each share held. This marks a major highlight for shareholders who have endured a six-year hiatus without payouts. The company anticipates this dividend to grow in the coming years, reiterating its commitment to maximising returns on investment and increasing share value.
eTranzact’s operational highlights/outlook
In 2024, eTranzact International Plc successfully consolidated on the gains of 2023. This included an increase in the volume and value of transactions processed. Furthermore, the success rate and turn-around time/average processing time of transactions improved significantly, a consistent trend over the past four years.
Major strategic highlights for the company in 2024, aimed at driving market dominance and competitive advantage, include:
- Transition to the new Smart Vista Switching Infrastructure, bringing more bank partners live on the new platform.
- Launch of a brand new PocketMoni Wallet Platform with a new mobile app.
- Introduction of a new Cashpoint Agent Management Platform, enabling the launch of more POS terminals and increased competition.
- Partnership with Enterprise Development Centre for an Artificial Intelligence (AI) readiness survey of Nigerian SMEs, fostering innovation.
- Enhancement of cross-functional product teams to support market-centric solutions.
- Significant investment in marketing initiatives for eTranzact Products to deepen presence and adoption in the retail and MSMEs space.
Olaniyi Toluwalope, managing director/CEO, expressed his gratitude to the team. He stated, “The achievements of 2024 are a demonstration of what is possible when there is collective resilience, dedication, and unwavering commitment to excellence.” He added, “Our positive attitude in making things happen has propelled eTranzact as one of the leading super fintechs, not just in Nigeria, but in Africa. We still have a long way to go, and we are not yet close to where we want to be, but we are confident that we are on the right path and on track in achieving our strategic objectives.”
Looking ahead, the eTranzact leadership expressed the company’s commitment to becoming a regional leader in the medium term and a global leader in the electronic and mobile payment industry in the long term. To this end, the company said it will continue to deliver secure, cost-effective, and innovative electronic and mobile payment services that are compliant with globally recognised standards. The MD/CEO also identified collaboration as a key success factor, noting it is embedded into the corporate culture and was the bedrock of project implementations and strategy execution in 2024.
eTranzact’s leadership emphasised the importance of strategic alliances and a customer-centric approach. The Chairman noted, “We fully understand the benefits of strategic alliances and the potential business opportunities these can create.” He added: “We are positive that our alliances will lead to improved performance in the years ahead.” The company is also actively redefining its corporate culture to align with its strategic objectives, ensuring a unified approach towards a bright future.
