e-finance for Digital and Financial Investments (EFIH) Q2 2023 earnings summary

Executive summary

• H1 2023 consolidated revenue rose 37.5% YoY to EGP 1,735.4mn; EBITDA increased 46.6% to EGP 823.0mn and net profit after NCI grew 49.8% to EGP 718.4mn.

• Variable-fee transaction revenue increased 85.9% YoY, supported by digital payments adoption and growth on key-sector platforms.

• H1 reported net profit was EGP 726.1mn; Q2 revenue was EGP 967.5mn and reported net profit was EGP 440.6mn.

Financial highlights

• H1 gross profit rose 36.1% to EGP 936.3mn; operating profit increased to EGP 729.0mn from EGP 516.0mn.

• Q2 revenue increased 37.7% YoY to EGP 967.5mn; EBITDA rose 43.2% to EGP 491.0mn and net profit after NCI grew 56.2% to EGP 436.4mn.

• H1 interest income rose 62.5% to EGP 257.2mn; investment income contributed EGP 76mn.

• SG&A increased 4.0% to EGP 177.6mn, declining to 10.2% of revenue from 13.5%; selling and marketing costs nearly halved.

• Basic EPS was EGP 0.34 versus EGP 0.20 in H1 2022.

Outlook and guidance

• Management expected continued strong results and delivery against communicated FY23 targets.

• Digital ticketing target: more than 100 active tourism sites by early 2024, from 66 in H1 2023.

• Saudi expansion discussions with PIF-owned entities continued; a local office was expected to be completed within the coming months.

• Viability of acquiring a digital banking license was under assessment following CBE licensing regulations.