eTranzact Reports N1.22 Billion H1 Profit as Revenue Rises 23% in First Half of 2026

eTranzact International Plc reported a solid increase in revenue during the first half of 2026, although higher operating expenses weighed on profitability as the electronic payment company navigated a more competitive business environment.

According to its unaudited financial results for the six months ended June 30, 2026, revenue increased by 22.6 percent to N16.28 billion, up from N13.28 billion recorded in the corresponding period of 2025.

Despite the strong revenue growth, rising operating costs pressured earnings. Profit before tax declined 19.1 percent to N1.75 billion, compared with N2.16 billion in the first half of the previous year.

Similarly, profit after tax fell to N1.22 billion, representing a 19.1 percent decline from N1.51 billion reported a year earlier.

The company’s gross profit improved modestly to N6.78 billion, from N6.44 billion in the same period of 2025, reflecting continued growth in transaction volumes and payment services.

Administrative expenses, however, increased significantly to N4.81 billion, compared with N3.94 billion in the previous year, offsetting part of the gains from higher revenue.

Operating profit consequently declined to N1.59 billion, down from N2.07 billion recorded in the corresponding period of 2025.

Investment income provided some support to earnings, rising to N156.79 million from N98.78 million, while finance costs declined to N6.85 million, compared with N10.49 million a year earlier.

For the second quarter alone, the company generated N7.84 billion in revenue, up from N6.76 billion in the same quarter of 2025. Quarterly profit after tax stood at N516.05 million, compared with N695.24 million recorded in the corresponding quarter last year.

On the balance sheet, total assets stood at N39.02 billion as of June 30, 2026, compared with N46.14 billion at the end of December 2025.

Cash and cash equivalents declined to N23.69 billion from N31.65 billion, while trade and other receivables increased slightly to N1.06 billion.

The company also strengthened shareholders’ equity during the period as retained earnings increased to N5.44 billion from N4.22 billion at the end of 2025, lifting total equity to N17.41 billion, compared with N16.19 billion six months earlier.

Total liabilities fell significantly to N21.60 billion, down from N29.95 billion at the end of December 2025, largely driven by a reduction in trade payables and current tax obligations.

The results indicate that while eTranzact continues to expand its revenue base amid increasing adoption of electronic payment services, managing operating costs will remain critical to improving profitability in the second half of the year.