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eTranzact International Plc has reported a 53.2% surge in pre-tax profit for the fiscal year ending December 31, 2024, reaching N4.8 billion, despite a decline in overall revenue. The company’s impressive profitability was driven by operational efficiencies and strategic cost management, effectively mitigating the impact of lower revenue figures.
Revenue and Profitability Performance
eTranzact’s total revenue declined by 11.82% year-over-year (YoY) to N29.8 billion, compared to N33.9 billion in 2023. This contraction was primarily due to a sharp decline in mobile airtime sales, which fell from N24.8 billion to N16.8 billion. However, the company’s core business operations remained strong, with profits from these activities rising to N4.6 billion from N3.1 billion the previous year.
Despite the revenue drop, other income sources remained stable, with commissions generating N13 billion, while remittance-related income and maintenance & support services contributed N25.3 million and N17.9 million, respectively.
Cost Efficiency and Expense Management
The company’s focus on cost control played a crucial role in its profit margin expansion. The cost of sales decreased by 27.55% to N18.5 billion, driven by lower mobile airtime purchase costs, which stood at N16.6 billion.
As a result, gross profit climbed 36.52% to N11.3 billion, reflecting the company’s ability to optimize operational efficiencies. However, marketing and administrative expenses increased, with selling and marketing costs rising by 58.06% to N424 million due to intensified branding efforts. Administrative expenses also grew by 29.06%, reaching N6.3 billion, primarily due to higher employee and operational costs.
Financial Strength and Earnings Growth
Interest income saw a remarkable 158.26% growth, reaching N242.9 million, primarily from higher returns on bank deposits. Additionally, foreign exchange gains contributed to a 31.40% increase in other income, totaling N10.9 million. These non-operational revenue streams bolstered eTranzact’s overall financial performance.
Earnings per share (EPS) also recorded significant growth, rising from N0.24 in 2023 to N0.37, a 54.17% increase, reinforcing shareholder confidence. The company further rewarded investors by declaring a final dividend of 12.5 kobo per 50 kobo share, payable to shareholders registered as of July 7, 2025, subject to applicable tax and regulatory guidelines.
Balance Sheet and Asset Overview
Despite the strong profitability, total assets declined by 14.91%, dropping to N24 billion from N28.2 billion in 2023. This decline was attributed to a reduction in current assets, which fell from N26 billion to N20.8 billion, mainly due to lower cash reserves and short-term deposits.
On a positive note, non-current assets grew, increasing from N2.1 billion to N3.1 billion, driven by higher investments in property, plant, and equipment, which accounted for N2.5 billion of total non-current assets.
Additionally, total equity surged by 29.56%, reaching N14.8 billion from N11.4 billion in 2023. This growth was fueled by a strong share premium of N7.3 billion and a turnaround in retained earnings, which improved from a negative N496.6 million to a positive N2.8 billion.
Conclusion
eTranzact International Plc demonstrated resilience and financial strength in 2024, achieving record profitability despite revenue challenges. The company’s strategic cost-cutting measures, solid core business performance, and enhanced non-operational income were key drivers of its success. With an improved equity position and a commitment to shareholder returns, eTranzact is well-positioned for sustainable growth and expansion in the coming years.
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