eTransact’s innovative product drive bears fruit as sales beat analysts’ estimate
eTranzact International Plc’s innovative product drive has bore fruit as Africa’s premier e-payments solution provider recorded double digit growth in revenue amid a tough and unpredictable macroeconomic environment.
For the year ended December 2016, eTranzact’s sales increased by 20 percent to N10.40 billion as against N8.67 billion the previous year.
The growth at the top line beat the N9.52 billion target of 5 analysts surveyed by BusinessDay.
eTranzact recorded a profit after tax of N499.48 million and a pretax profit of N865.13 million, its third straight profit in a highly competitive environment.
“Recognizing opportunities for partnerships, improved product focus, continued innovation, drive and commitment to the company’s vision of making payments simple helped our company navigate the challenging macroeconomic environment in 2016,” said Valentine Obi, Founder and CEO, eTranzact.
“We believe some of the strategic investments we have made across our business in 2016, have prepared us for an even better 2017” summed Obi.
The e-payment giant has a string of market penetrating products driving growth and helping it increase its share of the market of more than 160 million people that uses the electronic medium to carry out transactions.
eTranzact launched BankIT TM ,a payment service that allows businesses receive payment from bank accounts on Mobile, Web, USSD and POS without a debit card or hardware token.
In partnership with the Nigerian military, the payment technology company launched a Military pension product which allows over 100,000 retired members of the Army, Navy and Airforce access a biometric military pension card with a 4-in-1 value proposition: identification, verification, rewards, including receiving and making payments.
“eTranzact continues to ensure it maximizes the value of its shareholders and stake holders. We will continue to invest in our core infrastructure to position the company for the expanding opportunities within the sector”, said Niyi Toluwalope, Chief Financial Officer of the company.
Experts say the eTranzact will surpass last year revenue growth on the back of increasing of adoption of electronic payments channels, namely cheques, NIBSS Electronic Funds Transfer (NEFT), NIBSS Instant Payment, ATM, Point of Sale (PoS), Mobile money and the internet.
The value of electronic transactions rose by four percent to N51.8 trillion in 2016, according to a recent report the Central Bank of Nigeria (CBN).
The report shows that the value of electronic payment transaction increase by 88 percent to N51.80 million from N27.56 million the previous year. However, the volume of electronic payment dropped by 16 percent to N41.5 billion in 2016 from N34.90 billion in 2012.
eTranzact like other Nigerian firms was hit by the tough macroeconomic environment as huge power costs caused by unstable power supply, a weak naira and a severe dollar shortage ballooned cost of production.
The company’s cost of sales increased by 20 percent to N7.50 billion the period under review as against 6.20 billion the previous year.