eTranzact International Plc Posts a 3.29% Drop in Q2 2025 Earnings

eTranzact International Plc, a leading e-payment solution provider based in Nigeria, operating across multiple African countries and the UK, has reported a 3.29% year-over-year (YoY) decline in revenue for the second quarter (Q2) ended June 30, 2025, totaling N6.76 billion compared to N6.99 billion in Q2 2024.

The dip was largely attributed to softening transaction volumes and competitive pricing pressures in core payment services.

For the half-year (H1) 2025, eTranzact posted revenue of N13.28 billion, down 5.43% from N14.04 billion in H1 2024. Yet, gross profit soared 39.62% to N6.44 billion due to a sharp 27.47% YoY decline in cost of sales, indicating efficient delivery and platform operations.

H1 PBT was up 18.29% YoY to N2.2 billion, and PAT also rose 18% to N1.5 billion

Despite the drop in earnings, the company managed to improve its gross profit by 22.63% YoY to N3.22 billion in Q2 2025, thanks to a significant 18.90% YoY reduction in cost of sales to N3.54 billion.

This suggests effective cost management and improved margins across its transaction processing and platform services.

Despite margin improvements, eTranzact’s Q2 operating profit fell 6.54% YoY to N948.5 million in Q2, due to sharp rises in operating expenses.

Selling and marketing expenses jumped 194.75% to N317.5 million, while administrative costs increased by nearly 30% to N1.96 billion, mirroring the same trend in the company’s H1 financials. Overall, the company’s H1 Operating profit grew by +20.39% YoY.

These cost escalations in the second quarter pushed profit before tax down 7.31% to N993.2 million, and net profit slipped 7.30% to N695.2 million, signaling growing pressures from strategic expansion and workforce costs.

Still, the bottom-line figures reflect stability, particularly in a competitive fintech environment.

Operating profit rose 20.39% to N2.07 billion, while net profit grew 18.31% to N1.51 billion, showcasing strong earnings in the first half of the year.

The company’s operational efficiency continues to deliver sustainable results despite the decline in revenue.

As of June 30, 2025, total assets stood at N25.41 billion, up from N24.00 billion in December 2024, while equity rose 10.2% to N16.38 billion. This reflects solid cash positions and retained earnings growth driven by consistent profitability.

Subscribe to Notifications