eTranzact shifts from airtime sales to drive 2025 profit to ₦4.28bn

eTranzact International Plc, a Nigerian payments and switching company, expects its profit to grow by at least 26.03% to ₦4.28 billion ($2.98 million) in 2025, despite an anticipated 5.34% decline in revenue to ₦28.30 billion ($19.69 million) from ₦29.89 billion ($20.80 million).

During the first nine months of 2025, the company’s revenue fell 8.26% to ₦20.11 billion ($13.99 million), while profit after tax rose 12.45% to ₦2.41 billion ($1.68 million). For Q4 2025, eTranzact projects ₦8.19 billion ($5.69 million) in revenue and ₦1.87 billion ($1.30 million) in profit after tax, bringing the annualised figure to ₦28.30 billion ($19.69 million) and ₦4.28 billion ($2.98 million), respectively.

The company disclosed this in its Q4 2025 earnings forecast and unaudited financial statements for the nine months ending September 2025. The projection reflects eTranzact’s shift from airtime sales, historically one of its largest but lowest-margin revenue lines. Airtime aggregation contributed ₦16.83 billion ($11.71 million), or 56.29% of total revenue, in 2024.

“Over the years, a significant part of our revenue has always been value-added services, such as airtime. This is very low margin,” a company spokesperson told . “Right now, we are concentrating on high-margin revenue lines, which make up the bulk of what we have in our revenue. That is why it appears there is a drop in revenue and cost of sales.”

Cost of sales is expected to drop by 28.73% to ₦13.21 billion ($9.19 million) (annualised) in 2025 from ₦18.54 billion ($12.90 million).

The company’s numbers show a consistent push for efficiency and margin optimisation. In H1 2025, revenue fell 5.43% to ₦13.28 billion, but gross profit climbed 39.58% to ₦6.44 billion as cost of sales dropped 27.48% to ₦6.84 billion. Profit after tax for the half year rose 18.32% to ₦1.51 billion.

eTranzact also recorded improved operational cash flow. As of September 2025, cash receipts from customers stood at ₦19.79 billion ($13.77 million), while payments to suppliers and employees totalled ₦15.73 billion ($10.95 million), leaving a positive net of ₦4.07 billion ($2.83 million).

In the same period of 2024, eTranzact reported ₦21.87 billion ($15.22 million) in cash receipts but ₦26.53 billion ($18.46 million) in payments, resulting in a ₦4.66 billion ($3.24 million) negative net.

“We are prioritising our other business lines, such as switching, which includes funds transfer, bill payments, payment gateway, our financial inclusion business, and every other one of our business needs,” the spokesperson said.

eTranzact operates across switching, merchant acquiring, and consumer solutions, offering products such as PocketMoni (a fintech app), Corporate Pay (salary disbursements), PayOutlet (merchant payments), SwitchIT (transaction processing), and Credo (a social commerce payment gateway).

The company expects airtime’s contribution to continue declining as it doubles down on its digital payments and enterprise platforms. It is also betting on growth from its recent approval by the Federal Inland Revenue Service (FIRS) to support Nigeria’s e-invoicing rollout, a government initiative to digitise tax and business processes.

“It is a really big deal for us in terms of revenue potential,” the spokesperson said. “We are a key player in that sector and perhaps one of the top drivers of e-invoicing for FIRS.”

Exchange rate used: ₦1,436.97/$