eTranzact’s Strategic Pivot: Driving 2025 Profit to ₦4.28bn Despite Revenue Adjustments
eTranzact International Plc, a prominent Nigerian payments and switching company, is charting an ambitious course for its financial future. The company anticipates a significant surge in its profit, projecting a minimum growth of 26.03% to reach ₦4.28 billion ($2.98 million) by 2025. This impressive profitability outlook comes despite an expected 5.34% reduction in overall revenue, forecasted to decline from ₦29.89 billion ($20.80 million) to ₦28.30 billion ($19.69 million), signaling a deliberate strategic recalibration within the competitive African fintech landscape.
Refocusing for Enhanced Profitability
The detailed Q4 2025 earnings forecast and unaudited financial statements for the nine months ending September 2025 shed light on eTranzact’s evolving operational strategy. For the first nine months of 2025, the company observed an 8.26% dip in revenue, totaling ₦20.11 billion ($13.99 million). However, this period simultaneously saw a robust 12.45% increase in profit after tax, reaching ₦2.41 billion ($1.68 million). Looking ahead to Q4 2025, eTranzact projects ₦8.19 billion ($5.69 million) in revenue and ₦1.87 billion ($1.30 million) in profit after tax. These projections, when annualized, align with the full-year figures of ₦28.30 billion ($19.69 million) in revenue and a substantial ₦4.28 billion ($2.98 million) in profit after tax. This divergence between declining revenue and climbing profit is a direct consequence of eTranzact’s strategic departure from airtime sales. Historically, airtime aggregation represented one of the company’s largest revenue streams, but critically, it was also one of its lowest-margin lines. The ongoing shift aims to shed these less profitable services in favor of higher-margin offerings.
This strategic pivot underscores eTranzact’s commitment to optimizing its business model for sustainable profitability. By de-emphasizing high-volume, low-margin activities like airtime sales, the Nigerian payments and switching giant is strategically repositioning itself to capture greater value from its core services. This move is expected to bolster the company’s financial health, ensuring stronger returns and a more resilient operational framework within the dynamic fintech sector.
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