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Thursday, 10 March 2022

E-finance’s net income up 84% in 4Q2021

E-finance’s net income jumped 84% y-o-y in 4Q 2021 to EGP 139.3 mn, according to the company’s earnings release (pdf). Revenues rose almost 60% during the October-December period to record EGP 663.7 mn. Annually, the company’s bottom line grew 47% to EGP 519.7 mn on revenues of EGP 1.96 bn, up 59% y-o-y.

The breakdown: The state-owned tech firm’s flagship digital operations subsidiary, and its smart cards arm eCards, together accounted for around 95% of top-line growth in 2021. E-finance for Digital Operations’ revenues were up 23% last year to EGP 1.5 bn, driven by a “rapid expansion” in its financial cloud services. Revenues increased more than fourfold at eCards to reach EGP 375.8 mn as the subsidiary ramped up its new card management and smart solutions businesses. The company spent EGP 14.4 mn on one-off IPO-related expenses, including EGX, Financial Regulatory Authority, consulting fees, according to the release.

Looking ahead: E-finance aims to expand its client base “beyond government agencies and banks to grow the group’s exposure to retailers and corporates.” The company also aims to increase its share of wallet from digital banks, including by investing more in its cloud services, and to up its spend on tech in general.

New e-Finance shareholders will be paying close attention: This is the company’s first full-year release since it made its blockbuster EGX debut last year, raising some EGP 5.8 bn. Earnings fell in 3Q2021, but most investors will have been waiting for the 2021 release for a fuller picture on whether the firm can live up to the expectations generated in the IPO. E-finance shares closed down 2.9% at EGP 17.61 yesterday.

ALSO FROM E-FINANCE- The firm has appointed Sayed El Waraky (LinkedIn) as investor relations manager, according to a disclosure to the bourse (pdf). Former IR head Ahmed El Sayed is still onboard, now as senior investor relations manager.

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