e-finance for Digital and Financial Investments (EFIH) Q1 2024 earnings summary

Executive summary

• Consolidated revenue rose 49.6% YoY to EGP 1,149.2 mn, with broad-based subsidiary growth and higher-margin services supporting profitability.

• Net profit after NCI increased 64.0% to EGP 462.5 mn; separately reported net profit rose to EGP 472.3 mn from EGP 285.5 mn.

Financial highlights

• Gross profit increased 65.4% to EGP 637.1 mn; gross margin reached 55.4%, up 5.3 percentage points YoY.

• EBITDA rose 64.7% to EGP 546.8 mn; EBITDA margin increased 4.4 percentage points to 47.6%, and net profit margin rose 3.5 points to 40.2%.

• Investment income increased 5.5x to EGP 102 mn; interest income fell 24.7% to EGP 103 mn as cash shifted to alternative investments.

• Finance income increased to EGP 200.8 mn from EGP 146.1 mn, while finance costs rose to EGP 58.0 mn from EGP 40.8 mn.

• Cost of sales rose 33.8% to EGP 512.2 mn; SG&A increased 70.7% to EGP 145.7 mn, or 12.7% of revenue versus 11.1%.

Segment performance

• Digital Operations revenue grew 43.9% to EGP 1,031.4 mn pre-eliminations; cloud hosting rose 77.9% to EGP 369.3 mn and transaction revenue increased 32.3% to EGP 432.3 mn.

• eCards revenue rose 67.4% to EGP 103.8 mn; card production increased 52.4% and card-management revenue grew 59.0%.

• eKhales revenue increased 123.2% to EGP 35.4 mn; transactions rose 26.2% to 21.7 mn and the POS network reached 524,000 terminals.

• eAswaaq revenue grew 25.5% to EGP 73.4 mn; enable revenue increased 14.7% to EGP 26.2 mn.

• Services and operation of cards generated EGP 491.9 mn net revenue and EGP 318.4 mn gross profit; cloud services generated EGP 361.7 mn net revenue and EGP 281.9 mn gross profit.