eTranzact grows profits by 128.7%, eyes holding structure in 2023
By EDU ABADE, Business Editor
Nigeria’s leading electronic payment system company, eTranzact International Plc, has announced a profit before tax (PBT) of N536.4 million for the 2021 financial year.
The figure represents 128.66 per cent improvement over the N1.87 billion loss the company recorded in the comparative period, which the Managing Director/Chief Executive Officer of the company, Olaniyi Toluwalope, described as “impressive performance and the beginning of a glorious future.”
It also achieved a 124.13 per cent growth in its profit before tax (PAT), which rose from a negative region of N1.89 billion to N455.75 million. It replicated a similar performance, which the shareholders adjudged as outstanding on its top line.
The shareholders’ fund increased by 252.5 per cent from a loss of N1.58 billion to N2.41 billion, while turnover recorded a modest growth of 3.79 per cent, up from N22. 72 billion to N23.58 billion.
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At the firm’s annual general meeting (AGM) in Lagos, its Chairman, Wole Abegunde, who said the 18-year-old financial institution had commenced a journey to sustainable profitability, disclosed that eTranzact had developed a roadmap for restructuring its operations in line with the new regulatory framework for the payment system industry.
At its previous AGM, it disclosed its plans to embrace a holding structure to retain its leadership position across critical areas of the ecosystem for which Abegunde said the process of transitioning to a holding company was on course.
Also speaking, Toluwalope said the transition process would be completed before the end of the year or the first quarter of 2023, adding that “the scheme of arrangement” would be submitted to the regulators in the coming weeks. On the completion of the process, eTranzact will operate its switching and mobile money as spate entities under a holding company.
Toluwalope said the company has embarked on a range of initiatives to consolidate its hold on the market and support electronic payment growth. “The company commenced the implementation of its expanded Tech Stack initiative in 2021, which will invariably boost the company’s capacity, speed and security in processing transactions.
Significant progress has been made in the implementation process and the company will ensure that the implementation is completed within the project framework,” he said. He said eTranzact remained committed to the country’s financial inclusion drive, which is evident in the increase of its agents across the country.
The company had won several awards for its contribution to the growth of the country’s electronic payment system among which is Mobile Money Operator of the Year 2018, an honour the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS) conferred on it.