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Wednesday, 22 February 2023

e-Finance earnings rise 83% in 2022

e-Finance had a strong 2022: e-Finance’s adjusted net income rose 83% to EGP 948.6 mn in 2022, according to the company’s earnings release (pdf). Revenues came in at EGP 2.6 bn, up 35% y-o-y. In 4Q, the state-owned tech company’s adjusted net income jumped 67% y-o-y to EGP 232.7 mn on a 6% increase in revenues.

Digital operations and eAswaaq led revenue growth last year: Growth was driven primarily by the company’s flagship business, e-finance Digital Operations, which generated EGP 2.4 bn in revenues during the year, up 56% from 2021. Meanwhile, revenues at the company’s e-commerce subsidiary eAswaaq grew sixfold to EGP 141.3 mn, driven by the rollout of its digital ticketing service at 32 tourist sites.

Not doing so well: Revenues at eCards fell 65% during the year, due to fluctuations in revenue stream for its smart solutions services as well as “an unfavorable FX environment and the impact of global supply chain issues on SIM availability.” eKhales posted a 28% decline in revenues owing to a base effect caused by one-time POS sales made in 2021.

Shareholders in line for a bigger payout: The board has proposed paying out a dividend of EGP 0.23 per share to shareholders, according to an EGX disclosure (pdf). This is more than double the EGP 0.10 dividends distributed last year.

e-Finance is planning Saudi-backed expansion: e-Finance intends to expand into new markets during 2Q or 3Q this year by leveraging the Saudi sovereign wealth fund’s recent investment in the company, Chairman Ibrahim Sarhan told Asharq Business yesterday (watch, runtime: 8:15). The company completed a roadshow in Dubai last week and will soon visit Saudi Arabia to talk with investors alongside the Public Investment Fund, he said. The PIF last year invested EGP 7.5 bn to acquire a 25% stake in the firm, money that will enable the company to “strengthen the group’s offering and operational footprint in Egypt as well as beyond its borders across the Middle East and Africa,” Sarhan said in the earnings release

And fresh capex: The company plans to invest EGP 2 bn this year in its subsidiaries, Sarhan told Asharq.

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