Stock Market

eTranzact Posts N118.25m Decline in PAT in Q2 2020 as COVID-19 Bites

Published

3 years ago

August 21, 2020

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.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigerian Exchange Limited

Nigerian Exchange Rebounds with N166bn Gain, Led by Key Banking and Tech Stocks

Published

3 hours ago

December 6, 2023

Investors King

The Nigerian Exchange Limited bounced back on Tuesday as investors gained N166 billion after a brief stint in the red earlier in the week.

The market’s resilience was marked by a 0.43% rise in both market capitalization and the All-Share Index to close at N38.989 trillion and 71,250.17, respectively.

The resurgence was spearheaded by robust performances in the stocks of AccessCorp, United Bank for Africa, Zenith Bank Plc, FBNHoldings, and MTN Nigeria, showcasing the influential role of key banking and technology sectors in shaping market dynamics.

The day’s trading saw a significant uptick in transaction volume, surging by 20.93% to 433.57 million, valued at over N11.11 billion.

This indicated a robust 56.53% increase in trade value compared to the previous day. A total of 122 stocks were active in 7,016 deals, underlining the depth of market engagement.

Noteworthy gainers contributing to the positive trend included Secure Electronic Technology Plc, Multiverse, Sunu Assurance, FBNH, and Thomas Wyatt, posting gains of 10.00%, 9.95%, and 9.92%, respectively.

On the flip side, Abbey Mortgage Bank Plc led the decliners with a 9.88% depreciation.

The day’s market dynamics were notably influenced by key value drivers.

The Nigeria Infrastructure Debt Fund, managed by Chapel Hill Denham, made waves as it announced a special distribution to unit holders, contributing to its active trading volume of 20,517,592 units valued at N2.22 billion.

Airtel Africa, MTN Nigeria, UBA, and UAC Nigeria also played pivotal roles, contributing significantly to the total volume traded for the day.

This robust rebound underscores the dynamic nature of the Nigerian stock market, reflecting the interplay of various sectors in shaping its trajectory.

Nigerian Exchange Limited

Nigerian Stock Market Loses N259 Billion Amidst Medium-Cap Company Declines

Published

1 day ago

December 5, 2023

Investors King

In a day marked by losses in the equities of several medium-cap companies, the Nigerian Exchange Limited lost N259 billion in market capitalization.

BUA Cement led the loser’s chart with a 10% decline in share value to close at N93.60 per unit from N104 it settled the previous session.

Other impacted stocks contributing to the market downturn included Dangote Sugar (-0.43%), Lafarge (-0.17%), Oando Plc (-2.12%), Fidson (-3.53%), NGX Group (-0.68%), Zenith Bank (-0.43%), and United Bank for Africa (-0.23%).

The overall market capitalization and All-Share Index saw a 0.66% decrease to N38.823 trillion and 70,946.83, respectively as the year-to-date returns dipped to 38.43%.

Despite the overall decline, positive market sentiments persisted, resulting in 33 gainers and 26 losers.

The top gainer was the paper company, Thomas Wyatt, gaining 10% and closing at N2.75 per unit.

First Bank of Nigeria Holdings and Daar Communications also made significant gains, closing at N24.35 per unit (up 9.93%) and N0.34 (up 9.68%), respectively.

On the losing side, BUA Cement’s 10% decline was followed by McNichols, down 9.33%, and Computer Warehouse Group, which lost 7.50%.

The real estate firm, UPDC, also dipped by 7.14%, closing at N1.17.

Volume drivers for the day included Universal Insurance, Transnational Corporation, Airtel Africa, and GTCO.

Three out of five sectors tracked closed in the red zone, with the Insurance, Oil/Gas, and Industrial Goods indexes recording losses while Banking and Consumer Goods sectors saw slight advances.

Cowry Asset Management Limited researchers anticipate a dynamic week for investors as they navigate potential profit-taking and corrections amid global events, fixed-income yields, and Central Bank of Nigeria policies.

Nigerian Exchange Limited

Nigerian Stock Exchange Bounces Back, Gains N132 Billion in Market Cap

Published

6 days ago

November 30, 2023

Investors King

The Nigerian Exchange Limited rebounded on Wednesday with the market capitalization surging by N132 billion.

This uptick was propelled by the positive performance of key stocks, including Seplat Energy (+10%), Meyer Plc (+9.79%), Sunu Assurance (+9.56%), Nestle (+9.52%), and Consolidated Hallmark Holdings Plc (+9.24%).

The All-Share Index closed rose by 0.34% to 71,283.34 points, reflecting investors’ optimistic sentiment, particularly in medium and large-cap stocks with solid fundamentals while the market capitalization increased to N39.007 trillion.

Despite a decline in total deals and volume by 19.14% and 32.55% to 6,579 deals and 360.60 million units respectively, the total value for the day increased by 17.64% to N6.61 billion.

Among the gainers, Seplat, Meyer, Sunu Assurance, Nestle Plc, and Consolidated Hallmark Holdings Plc stood out, closing at N2.310, N3.59, N1.49, N1.150, and N1.30 per unit, respectively, after gains ranging from 10% to 9.24%.

The losers’ chart was led by Guinea Insurance, down 10%, followed by Omatek (-9.88%), Abbey Mortgage Bank (-9.68%), Neimeth Pharma (-9.45%), and Tantalizer (-8.62%).

Performance across sectors was predominantly bullish, with the Insurance, Consumer Goods, Oil/Gas, and Industrial Goods indexes recording notable advancements of 1.17%, 0.89%, 6.06%, and 0.01%, respectively.

However, banking stocks emerged as the only laggard for the day, declining by 0.56%.

GT Bank (GTCO) dominated trading activities, emerging as the most traded security in terms of volume and value, with 56.91 million units worth N2.19 billion traded in 261 deals.

This positive momentum signals a renewed fervor in the Nigerian stock market.