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Africa Prudential Revenue Decline by 52% in Q1, 2020

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  • Africa Prudential Revenue Decline by 52% in Q1, 2020

Africa Prudential Plc revenue declined by 52 percent year-on-year to N0.13 Billion, down from N0.27Billion recorded in the first quarter of 2019.

In the unaudited financial results released on the Nigerian Stock Exchange (NSE), the company’s gross earnings declined by 14 percent year-on-year to N0.74 Billion down from N0.87 Billion. Profit before tax dipped by 9 percent from N0.45 billion in the corresponding period of 2019 to N0.41 billion.

Accordingly, profit after tax declined by 10 percent to N0.34 billion in the first quarter of 2020 from N0.38 billion.

However, interest income rose by 3 percent to N0.61 billion, up from 0.60 billion recorded in the same quarter of 2019.

Speaking on the results, the Managing Director/CEO of Africa Prudential, Mr. Obong Idiong, said “Globally, this year had kicked off on an unprecedented note, with the unanticipated spread of the coronavirus disrupting economic activities all across the globe, Nigeria inclusive. The COVID19 pandemic had threatened the smooth operations of our business and that of our clients’ mounting enormous pressure on our revenue sources particularly the Revenue from contract with customers, the resultant effect was the reduction recorded in our gross earnings for Q1 2020.

“However, the over 900% surge in our digital consultancy revenue attest to the fact that we have a lot of opportunities to harness the potential inherent in our digital technology business to boost our revenue whilst upscaling our diversification strategy.

“The period under review tested our commitment to delivering value to our stakeholders while ensuring that we communicate truthfully, calmly and with resolve. As an organization, we prioritize the welfare and safety of our employees and have responded proactively by implementing our Business Continuity Plan (BCP) which involves the work-from-home protocol for all our departments and business segments whilst attending to all shareholders’ request through our electronic channels. Further, we have commenced the full end-to-end automation of AGMs while providing technology-driven solutions for the corporate action activities of our clients. We will continue to offer services through our various cloud based digital platforms, sustain ongoing technological projects and adequately position for post-crisis continuity of our business operations.

He added that “Our focus at Africa Prudential is still driven by our digital transformation strategies, achieving world-class superior value for all our stakeholders as we continue to pursue our diversification strategies.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.