eTransact records N118m loss in H1’20

eTranzact International Plc has posted a loss after tax of N118.25 million for the half year ended June 30, 2020 as against profit after tax of N96.09 million recorded in 2019.

According to the unaudited report obtained from the Nigerian Stock Exchange (NSE), the oil firm posted revenue of N5.769 billion in 2020 as against N6,457 billion reported in 2019, representing a drop of 10.65 per cent.

However, cost of sales stood at N5.520 billion from N5.904 billion in 2019 representing a drop of 6.50 per cent. eTranzact International posted a loss after tax of N182.53 million for the first quarter ended March 31, 2020

The oil firm posted revenue of N5.915 billion in 2020 as against N5.59 billion reported in 2019, representing a growth of 5.81 per cent. However, cost of sales stood at N5.071 billion from N5.071 billion in 2019 representing a growth of 31.32 per cent.

The Nigerian Stock Exchange (NSE) recently notified dealing members that the company had through its lead Stockbroker, Meristem Capital Limited, submitted an application for the approval and listing of a rights issue.

The rights issue was of Four million Six hundred and sixty million Six Hundred and Sixty- Six Thousand, Six Hundred and Sixty-Seven (4,666,666,667) ordinary shares of fifty kobo (N0.50) each at N1.50 per share, on the basis of 10 new ordinary shares for every 9 ordinary shares held.

According to reports, in its financial result released for 2019, eTranzact International Plc had revenues fall -63.96 per cent from N18.62bn to N6.71bn, though the company grew net income from a loss of N3.14bn to a gain of N99.79m. eTranzact International Plc is a payment technology provider. The Company is principally engaged in the processing of all facets of electronic payment transactions using its switching platform.

The company’s segments are Air time purchases, Other commissions, and Maintenance and support services, software development and others. The Company also provides maintenance and software development services.

The switching platform processes transactions across various channels, which include mobile phones (global system for mobile communications (GSM), code division multiple access (CDMA) or analog), Web (using any Internet browser in a secured transaction), point of sale (PoS), automated teller machine (ATM), other mobile devices and bank branches.