eTranzact profit falls 16% in 2025 despite revenue rise

eTranzact International Plc missed its 2025 profit target despite a modest rise in revenue, as higher costs outweighed gains from improved margins, according to unaudited results.

Profit after tax fell 15.68% to ₦2.97 billion in 2025, down from the previous year. Meanwhile, revenue rose 1.08% to ₦29.82 billion, the Nigerian payments and switching company said.

Gross profit climbed 24.48%, supported by a 13.62% drop in cost of sales, which pointed to better unit economics. However, administrative expenses jumped 50.08% to ₦9.24 billion, erasing those gains and pulling full-year profit below 2024 levels.

In an email response, the company said several major projects expected to start in the fourth quarter stalled due to external dependencies. As a result, revenue and earnings projections for the period did not materialise as planned.

The company said higher depreciation from new asset acquisitions and increased investment in manpower drove the rise in operating expenses. At the same time, it continued to adjust its business mix away from airtime sales.

According to eTranzact, the share of mobile airtime revenue declined in 2025, although it has not disclosed a detailed breakdown. Further details will appear in its audited accounts.

In the fourth quarter, the company exceeded its revenue forecast, posting ₦9.86 billion compared with a projected ₦8.19 billion. However, profit after tax fell to about ₦561.66 million, far below expectations, as costs rose faster than revenue.

The company said higher technology costs and growth in low-margin revenue lines pushed up direct expenses. Although some high-margin lines performed well, they did not offset the overall cost pressure.

Earlier projections had pointed to full-year revenue of ₦28.30 billion and profit of ₦4.28 billion. Instead, rising overheads compressed margins and left earnings well short of target.

Despite the profit miss, cash flow improved. Cash receipts from customers edged up 0.62%, while payments to suppliers and employees fell sharply, leaving a net positive cash movement of ₦23.78 billion.

Looking ahead, eTranzact expects revenue to drop 42.69% in the first quarter of 2026, while profit is forecast to fall 18.98% to ₦672.72 million. Even so, the company is betting on growth from digital payments, enterprise platforms and its role in Nigeria’s e-invoicing rollout approved by the tax authority.