Business eTranzact International Grows Profit By 150%, Partners MasterCard

[Temitope]

eTranzact International Plc, a banking and payment services company in Nigeria has recorded a profit boom of 147.40 percent in the 2015 half year results. This is despite the challenging operating environment.

eTranzact has been consistently experiencing double digits growth in revenues and profit since last year. This performance is quite impressive considering the fact that other players in the industry are succumbing to the tough conditions in the industry. eTranzact profit surged from N66.93 million in half year 2014 to N165.58 million in June 2015.

Below are other growth details recorded by the bank;

• Gross profit increased by 54.30% to N555.69 million from N360.13 million
• Gross profit margin moved to 27.50 percent in 2015 from 20.60% - This means eTranzact is efficient in managing direct costs attributable to projects
• Net margin (measure of profitability and efficiency) moved to 8.19% from 3.82%
• Cost of sales margin reduced to 72.22% from 79.22% - This means the company is spending less to produce each unit of product

eTranzact's cost of sales increased by 5.79% to N1.46 billion in 2015 as against N1.38 billion the previous year. This is a reaction to the challenging business environment. The devaluation of naira has exposed a number of technology companies to currency risk as the cost of importing hard and software has increased.

Irrespective of the challenges, eTranzact has been able to utilize the resources of its owners in generating higher profits as return on equity (ROE) increased to 3.27 percent in 2015 as against 1.43 percent in 2014. Total assets also rose by 8.58 percent to N5.06 billion. eTranzact share price closed at N3.33 on the floor of the stock exchange while market capitalization was N13.98 billion.

Meanwhile, eTranzact has partnered MasterCard, a global payment technology company to make international remittance services available to millions of consumers in Nigeria. This agreement will enable Nigerians to securely receive international remittances into their eTranzact mobile money wallets or selected bank accounts through the international transfer hub, HomeSend.