eTranzact posts N4.2B profit in 2025 with revenue growth, despite rising administrative and marketing expenses affecting overall earnings

Lagos-based payments company eTranzact International Plc sustained profitability in 2025, posting a profit before tax of N4.2 billion, down from N5.02 billion in 2024, according to its latest unaudited financial statements released on the Nigerian Exchange.

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Revenue for the year grew modestly to N29.8 billion, a 1.08% increase from 2024, supported primarily by the company’s electronic payment processing and switching services.

In the fourth quarter alone, eTranzact generated N9.8 billion, a 30% year-on-year increase, with pretax profit for the period standing at N802.3 million.

The company recorded improved gross earnings, as cost of sales fell to N15.6 billion from N18.1 billion, lifting gross profit by 24.48% to N14.1 billion.

However, rising operating expenses weighed on overall profitability.

Administrative costs surged 50.08% to N9.2 billion, while selling and marketing expenses jumped 119.5% to N930.8 million.

This resulted in operating profit declining to N4.0 billion from N4.8 billion in 2024.

After accounting for finance costs of N19.2 million and investment income of N258.8 million, pretax profit settled at N4.2 billion.

On the balance sheet, total assets rose sharply by 92% to N46.1 billion, driven largely by cash and cash equivalents of N31.6 billion. Shareholders’ equity strengthened to N16.6 billion, supported by retained earnings rising to N4.7 billion from N2.8 billion.

Total liabilities, however, increased substantially to N29.5 billion from N9.1 billion, reflecting higher financial obligations.

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The market responded positively to the results. eTranzact shares rose more than 7% as of mid-trading on 4 February 2026, trading above N18, indicating investor confidence in the company’s continued profitability and stronger balance sheet despite the decline in pretax earnings.