ETranzact Forecasts 2% Profit on N5.2bn Net Revenue
Nigeria’s online real-time payment platform, eTranzact, has estimated net revenue of N5.186 billion for the first quarter of 2022, according to its latest regulatory filing but the company is seeing a net profit of less than N98 million.
The earnings forecast for the first quarter was approved by the Board of Directors on 10th December 2021, according to the company in a statement signed by its Chief Executive Niyi Toluwalope and acting Chief Financial Officer Emmanuel Ogunji.
It appears however that the company belongs to a thin margin category looking at preceding year financial forecasts.
More than 88% of the company’s net revenue for the first quarter in 2022 is expected to be direct costs. Further pressure on the company’s operating result is also expected to fall in line given its sizeable operating expenses.
Of the N5.186 billion net revenue projected for the period, the company estimate shows costs of goods at N4.584 billion, leaving gross profit at N602 million.
Charging its operating expenses estimated at about N498 million against the company’s gross profit would keep operating profit at N104.117 million in the first three months of 2022.
The company is expecting a N43.202 million investment income, thus boosting its position a bit before finance costs charges.
Based on its debt position, the company projects its finance costs to print at N3.825 million, thus pre-tax profit is expected to print at about N143.5 million.
The real-time online payment company is putting up with a tax provision of N45.918 million in the first quarter of operation in 2022, reducing the expected profit for the period to N97.576 million.
E-Tranzact, the first online real-time payment system that allows account holders to pay for goods and services purchased from merchants share price closed at N2.09.
Last week Friday, equity investors valued the company N13.866 billion on the Nigerian Exchange on 6.63 billion outstanding shares. Comparing the estimate, the company had a projected revenue of N3.878 billion for the first quarter of 2021 last year.
Its costs of sales were also near N3.485 billion. It had expected the first quarter of 2021 profit to print at N36.168 million. However, the company sales hit N5.182 billion, thus outperforming its initial expectation.
Which signals its upgraded its latest expectation for 2022.
Though revenue heaped, the company did not meet up with its profit expectation in the first half of 2021 as projected. Instead of the forecasted amount, the company’s profit for the period printed at N23.88 million. # ETranzact Forecasts 2% Profit on N5.2bn Net Revenue
Read Also: Nigerian Exchange Drops over Selloff in Banking Stocks
