- 718 million Egyptian pounds net profit, at an annual rate of 49.8%, thanks to the outstanding performance of the subsidiaries.
By: Mostafa Ibrahim - Wael Elgafary
The e-finance group for financial and digital investments revealed its financial and operational results for the first half of 2023 ending on June 30, 2023, as revenues increased at an annual rate of 37.5% to record 1.7 billion pounds, supported by the strong performance achieved by the group's subsidiaries and operating profits increased before deducting Taxes, interest, depreciation and consumption increased by an annual rate of 46.6%, to record EGP 823.0m during the first half of 2023. Net profit after minority interests increased at an annual rate of 49.8%, to record EGP 718.4m, accompanied by an annual growth in the net profit margin of 3.4%, to record 41.4% during the same period. .
Revenues increased at an annual rate of 37.5% to approximately EGP 1.7bn during the first half of 2023, driven by the growth in revenues of most subsidiaries. The financial facility operating technology company "e-Finance" continued to lead in the growth of the group's total revenues during the period, thanks to the strong results achieved by the cloud computing services sector, in addition to the growth in the revenues of the transaction management sector during the period.
The revenues of “eCards” for smart card operating technology and “eAswaaq” for electronic market operating technology also contributed to the group’s results during the period as well. and robust operations despite the difficult market challenges. During the second quarter of 2023 alone, revenues increased by an annual rate of 37.7%, to reach EGP 967.5m.
After excluding transactions between subsidiaries, the financial facilities operating technology company “e-finance” continued to lead in contributing to the group’s total revenues during the first half of 2023, as the company’s revenues increased at an annual rate of 43.9%, to reach approximately EGP 1.6 billion during the first half of this year. , which represents 90% of the group's total revenues during the same period.
This reflects the outstanding performance of the cloud computing services sector, as well as the high revenues of the transaction management sector. The cloud computing sector succeeded in recording revenues of EGP 597.3m during the first half of this year, an annual growth rate of 91.9%.
Revenues from the transaction management sector increased by an annual rate of 54.1%, to record EGP 636.8m during the period, driven by an increase in revenues from transactions with variable fees, at an annual rate of 85.9%, to reach EGP 390.8m, and revenues from transactions with fixed fees, at an annual rate of 21.1%, to record EGP 246.0m during the same period. On the other hand, the revenues of the integrated solutions sector for network development and management services declined by an annual rate of 11.6%, to record 317.5 million during the first half of this year.
After excluding transactions between subsidiaries, the smart card operating technology company “e-Cards” succeeded in achieving strong performance during the first half of 2023, as the company’s revenues increased at an annual rate of 91.4%, to record EGP 97.6 million. This is mainly due to the increase in card management revenues at an annual rate of 138.9% to EGP 78.9m during the first half of this year.
The growth in e-Cards revenues is also due to the increase in revenues from card issuance services at an annual rate of 25.6% to EGP 66.8m during the first half of this year. The revenues of the “Khalis” company increased at an annual rate of 31.1% to EGP 26.8m during the first half of 2023, thanks to the growth in the volume of transactions during the period. “E-Nabel” revenues increased at an annual rate of 8.5%, to record 29.5 million pounds during the first half of this year, supported by the increase in revenues from information technology outsourcing services.
On the other hand, eAswaaq’s revenues amounted to 11.1 million pounds during the first half of this year, compared to 52.8 million pounds during the same period last year, noting that the growth in revenues for the comparison period of the first half of last year is due to the recording of exceptional revenues from a contract. supply during the period.
In terms of profitability, gross profit increased at an annual rate of 36.1%, to record EGP 936.3m, during the first half of 2023. However, the gross profit margin declined by 56 basis points, to record 54.0% during the same period, as a result of a slight increase in the cost of sales ratio to revenues.
Net profit after minority interests increased at an annual rate of 49.8%, to record 718.4 million pounds, during the first half of 2023. This was accompanied by an increase in the net profit margin by 3.4 percentage points, to record 41.4%. Net profit growth is driven by higher operating profit margins, investment income and interest income.
Ibrahim Sarhan, Chairman of the Board of Directors of the e-Finance Group for Financial and Digital Investments, affirmed the group's success in continuing the growth path and achieving strong financial and operational results by the end of the first half of 2023, which is a clear testimony of the group's ability to achieve the planned goals despite the difficult challenges facing various markets. This comes thanks to the group moving forward towards consolidating its leading position in the Egyptian digital payments market at the level of key sectors across the country, and continuing to maximize the benefit from its strong technological infrastructure.
Sarhan explained that the group succeeded in growing revenues by an annual rate of 37.5%, to record approximately EGP 1.7 billion, thanks to the outstanding performance of the “e-finance operating technology” company, which continues to reap the fruits of its investments in developing cloud computing services and expanding its spread in that promising and fast-growing sector. Revenues from the transaction management sector also increased strongly thanks to the growth in revenues from transactions with variable fees at a strategic annual rate, especially with the high demand for digital payment transactions in Egypt.
In terms of profitability, the group was able to grow the net profit by an annual rate of 49.8%, to record EGP 718.4m during the first half of 2023, accompanied by an increase in the net profit margin by 3.4 percentage points to 41.4% during the same period. This comes thanks to the company's management's success in reducing the impact of inflation challenges and interest rate instability in Egypt by employing a variety of relevant risk management strategies.
Sarhan expressed his pride in the success of one of the most important investments made by the group in the tourism sector. Less than two years after its launch, digital ticketing solutions have become a mainstay for revenue growth quarter after quarter, contributing 10% of the group's total revenues during the first half of this year, which is what It confirms the group's commitment to implementing its investment strategy that focuses on expanding its services footprint in strategic sectors that look forward to digital transformation.
