eTranzact’s PAT Declines By N118.25 Million in Q2 2020
eTranzact, Nigeria’s premier payment processing platform, on Thursday reported N118.250 million decline in Profit After Tax (PAT) for the second quarter (Q2) ended 30th June 2020.
The payment company revenue declined from N6.458 billion filed in the same period of 2019 to N5.769 billion in the second quarter of 2020.
This decline continues with gross profit as it declined by more than 50 percent from N553.428 million posted in the corresponding quarter of 2019 to N248.899 million in Q2 2020.
Selling and marketing costs surged during the period under review to N12.272 million, up from N7.397 million posted in Q2 2019.
However, despite eTranzact moderating its administrative expenses from N470.962 million achieved in Q2 2019 to N389.271 million in Q2 2020, operating profit plunged from N75.069 million in Q2 2019 to -152.644 million in Q2 2020.
Even finance cost rose from zero recorded in the corresponding quarter to N4.973 million while investment income declined from N66.246 million filed in Q2 2019 to N39.367 million in Q2 2020.
Profit after tax plunged from N96.094 million filed in the second quarter of 2019 to N118.250 million in the second quarter of 2020.
The company total assets increased to N6.9 billion, up from N6.767 billion posted in the same period of 2019.
Surprisingly the company’s liability also surged from N6.459 billion to N6.895 billion during the period under review.
Equity attributed to owners stood at N5.923 million, down from 306.702 million posted in the corresponding period of 2019.
A critical look into the company’s financial statements showed the COVID-19 pandemic broadly impacted the company’s revenue as cash receipt from customers during the period declined from N25.205 billion in Q2 2019 to N11.616 billion in Q2 2020, plunging cash generated from operations by 50 percent from N458.107 million to N227.012 million in Q2 2020, the peak of COVID-19 disruption.
Still, eTranzact up its investment by purchasing property, plant and equipment worth N288.952 million during the period.
Insider Dealing: Flour Mills MD Invest N91.642 Million in Flour Mills
Following the purchase of 1.95 million shares in Flour Mills of Nigeria a few days ago, the Group Managing Director, Paul Miyonmide Gbededo, has purchased another 1.34 million shares at N27.75k per share.
The company stated in a disclosure form released through the Nigerian Stock Exchange (NSE).
Mr. Gbededo bought an additional 1,336,028 shares valued at N37,074,777 on November 19, 2020 at the Nigerian Stock Exchange (NSE) in Lagos. Meaning, Gbededo invested an additional N37,074,777 into Flour Mills in what could be said as a show of confidence in the company’s future.
This brings the Managing Director’s total purchase in November to 3,284,867 shares at a combined value of N91,642,269. See the details below.
Insider Dealing: Fidelity Bank’s GM Purchases 1 Million Shares in the Bank
The General Manager and Regional Bank Head, Fidelity Bank Plc, Mr. Kenneth Opara, has purchased 1 million shares of Fidelity Bank Plc.
The bank stated in a disclosure statement forwarded to the Nigerian Stock Exchange (NSE) on Friday.
Opara carried out the purchase in two different transactions on November 25, 2020 at the Nigerian Stock Exchange trading flour in Lagos, Nigeria.
The General Manager bought 6,000 shares at N2.78 per unit and another 994,000 at N2.79 per share. Bringing total purchase to 1 million shares at an average share price of N2.78. See the details below.
Bank Stocks Top Charts Amid Strong Third Quarter Performance
Bank stocks top both gainers’ and top traded stocks’ charts on Tuesday as investors at the Nigerian Stock Exchange continues to increase their holdings of banks’ stocks amid strong third-quarter financial results.
Zenith Bank led the most traded stocks for a second consecutive day on Tuesday following a declaration of N509 billion gross earnings and N177 billion profit after tax in the first nine months of the year.
Investors traded 71,933,841 shares of Zenith Bank valued at N1,730,151,404.20 during the trading hours of Tuesday.
Transcorp, the only non-bank stock on the top five trades, followed Zenith Bank with 37,172,526 shares worth N32,853,263.27.
Guaranty Trust Bank Plc, Access Bank and United Bank for Africa (UBA) exchanged 30,003,182 units, 29,549,235 units and 29,332,033 units estimated at N1,022,126,997.60, N243,311,726.70 and N236,303,261.20, respectively.
Investors exchanged a total of 365.414 million shares valued at N4.692 billion in 6,325 deals on Tuesday to return the bourse to the green zone after two days of consecutive declines.
The Nigerian Stock Exchange market capitalisation rose by N114 billion from N17.829 trillion it closed on Monday to N17.943 trillion on Tuesday. While the NSE All-Share Index gained 220.82 index points or 0.06 percent to 34,349.56 index points it settled on Tuesday, up from 34,119.74 index points on Monday.
Stanbic IBTC Bank led gainers with N2.8 or 7.08 percent gain to finish the day at N42.35 per share. See the details below.
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