eTranzact International Plc posted a 22.6 percent rise in revenue for the first half of 2026, reaching N16.28 billion, as the electronic payment company continued to benefit from growing demand for digital financial services across Nigeria. Despite this strong top-line growth, higher operating expenses impacted profitability, leading to a 19.1 percent decline in both profit before tax and profit after tax. The company’s unaudited financial results for the six months ending June 30, 2026, reveal a mixed performance shaped by increased transaction volumes and rising administrative costs.
Revenue growth was driven by expanding customer adoption and increased activity in payment services, with the company recording N7.84 billion in the second quarter alone—up from N6.76 billion in the same period of 2025. Gross profit also improved slightly to N6.78 billion from N6.44 billion, indicating sustained momentum in core operations. However, administrative expenses surged to N4.81 billion, up from N3.94 billion in the prior year, which significantly offset revenue gains and contributed to a drop in operating profit to N1.59 billion from N2.07 billion.
Profit before tax fell to N1.75 billion, while profit after tax declined to N1.22 billion, both down 19.1 percent year-on-year. Investment income provided some relief, increasing to N156.79 million from N98.78 million, while finance costs decreased to N6.85 million from N10.49 million. These factors helped cushion the blow from rising expenses, but were not enough to reverse the overall decline in earnings.
On the balance sheet, total assets stood at N39.02 billion as of June 30, 2026, down from N46.14 billion at the end of December 2025. Cash and cash equivalents decreased to N23.69 billion from N31.65 billion, while trade and other receivables rose slightly to N1.06 billion. Shareholders’ equity improved, with retained earnings rising to N5.44 billion from N4.22 billion, pushing total equity to N17.41 billion. Total liabilities dropped sharply to N21.60 billion from N29.95 billion, largely due to lower trade payables and current tax obligations.
The financial results highlight eTranzact’s continued growth in the digital payments sector, even as it faces challenges in controlling costs in a competitive market. The company’s ability to manage expenses and maintain revenue momentum will be key to restoring profitability in the second half of 2026. As Nigeria’s fintech landscape evolves, eTranzact’s performance will be closely watched by investors and industry observers alike.
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