eTransact posts N118.25m loss in three months
Aderemi Ojekunle is a Businessamlive Reporter.
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By Omobayo Azeez
Even as some listed companies churn out positive numbers that beat expectations, operations of eTransact between April and June, this year could not rescue it to break free of negative performance.
According to its unaudited account for the second quarter of the year filed with the Nigerian Stock Exchange (NSE), the e-payment company recorded a loss of N118.26 million, from a profit of N151.312 million in the comparative period of 2019.
The payment company revenue also declined from N6.458 billion filed in the same period of 2019 to N5.769 billion in the second quarter of 2020.
This decline continues with gross profit as it declined by more than 50 percent from N553.428 million posted in the
corresponding quarter of 2019 to N248.899 million in Q2 2020.
Selling and marketing costs surged during the period under review to N12.272 million, up from N7.397 million posted in Q2 2019.
However, despite eTranzact moderating its administrative expenses from N470.962 million achieved in Q2 2019 to N389.271 million in Q2 2020, operating profit plunged from N75.069 million in Q2 2019 to N152.644 million in Q2 2020.
Even finance cost rose from zero recorded in the corresponding quarter to N4.973 million while investment income declined from N66.246 million filed in Q2 2019 to N39.367 million in Q2 2020.