eTranzact International Plc: A Resurgence in Financial Performance and Strategic Growth in 2024
eTranzact International Plc, Nigeria’s leading payment processing platform, experienced a significant financial turnaround in 2024, reporting a remarkable 54.12% increase in profit after tax, reaching N3.39 billion. This achievement, announced during the company’s 21st Annual General Meeting, signifies a successful implementation of strategic initiatives and operational improvements. The company’s robust financial performance reflects a combination of increased revenue generation and stringent cost-efficiency measures, marking a positive trajectory for future growth and profitability.
The Chairman of the Board, Mr. Wole Abegunde, attributed the positive performance to the concerted efforts of the board, management, and staff. The impressive financial results, with Profit Before Tax at N4.9 billion and Profit After Tax at N3.4 billion, surpass prior years’ figures, underscoring the company’s commitment to operational efficiency and strategic growth. The company’s commitment to customer satisfaction remains a cornerstone of its strategy, with continuous efforts to refine product offerings, maintain competitive pricing, and reduce service delivery costs. This customer-centric approach, coupled with operational improvements, solidified eTranzact’s market position and contributed to its financial success in 2024.
As a testament to the company’s financial recovery and strengthened retained earnings, the Board proposed a dividend payout of 12.50 kobo per share. This decision reflects eTranzact’s focus on delivering shareholder value and providing consistent returns on investment. The reinstated dividend payout signals confidence in the company’s future prospects and reaffirms its commitment to rewarding investors. The overall financial performance signals a healthy and robust financial outlook for eTranzact, positioning it for continued growth and success in the Nigerian payment processing landscape.
Mr. Olaniyi Toluwalope, Managing Director/Chief Executive Officer, elaborated on the operational performance, reporting a 36.52% increase in gross profit, rising from N8.32 billion in 2023 to N11.36 billion in 2024. Operating profit also experienced substantial growth, increasing by 48.83% to reach N4.66 billion. Profit Before Tax saw a 53.20% increase, and earnings per share rose significantly by 54.17%, from 24 kobo to 37 kobo. This surge in profitability is primarily attributed to increased transaction volumes and values, driven by consistent and reliable service delivery, stable pricing strategies, and the burgeoning demand for digital payment solutions across Nigeria.
eTranzact’s operational success is further underlined by the company’s improved transaction success rates and reduced average processing times, a trend that has consistently improved over the past four years. This sustained enhancement in operational efficiency demonstrates eTranzact’s commitment to providing seamless and reliable payment processing services to its customers. By optimizing its processes and leveraging technological advancements, the company has been able to enhance transaction efficiency and deliver a superior customer experience. This continuous improvement in operational metrics contributes to the company’s overall growth and strengthens its position as a leading payment processor.
In 2024, eTranzact implemented a series of strategic initiatives designed to enhance its market positioning and drive future growth. A key initiative was the migration to the Smart Vista Switching Infrastructure, which expanded the network of partner banks on the platform, broadening the company’s reach and service capabilities. The launch of the new PocketMoni Wallet Platform and mobile app provided users with a more convenient and accessible digital payment solution, catering to the growing demand for mobile-based financial services. The deployment of the Cashpoint Agent Management Platform further accelerated the nationwide rollout of POS terminals and strengthened the company’s competitive position in the market.
These strategic initiatives, combined with the company’s robust financial performance and operational improvements, position eTranzact for sustained growth and market leadership in the dynamic Nigerian payment processing landscape. The focus on innovation, customer satisfaction, and strategic partnerships will continue to drive the company’s success in the years to come. By embracing technological advancements and adapting to the evolving needs of the market, eTranzact is well-positioned to capitalize on the growing demand for digital payment solutions and further solidify its position as a key player in the Nigerian financial technology sector. The company’s commitment to delivering shareholder value, coupled with its strategic vision and operational excellence, paves the way for a promising future.
