e-finance for Digital and Financial Investments (EFIH) Q3 2023 earnings summary

Executive summary

• Consolidated 9M23 revenue rose 42.7% YoY to EGP 2,764.8m; net profit after NCI increased 68.1% to EGP 1,147.4m.

• Consolidated Q3 revenue reached EGP 1,029.3m; net profit was EGP 433.4m, including EGP 429.0m after NCI.

• Separate 9M statements reported revenue of EGP 799.7m and net profit after tax of EGP 824.7m; revenue was mainly dividend income from subsidiaries, associates and FVOCI investments.

Financial highlights

• Consolidated 9M23 gross profit was EGP 1,490.5m, up 37.9% YoY; gross margin declined 1.9 percentage points to 53.9%.

• Consolidated 9M23 EBITDA rose 44.1% to EGP 1,313.8m; operating profit was EGP 1.183bn and profit before tax EGP 1.619bn.

• Consolidated 9M23 SG&A increased 18.1% to EGP 282.0m, while SG&A as a share of revenue improved to 10.2% from 12.3%.

• Separate Q3 revenue was EGP 437.4m versus EGP 322.8m; gross profit was EGP 396.8m and net profit after tax EGP 434.5m.

• Separate 9M gross profit was EGP 680.8m, operating profit EGP 650.3m and finance income EGP 304.8m; net profit after tax was EGP 824.7m.

Segment performance

• 9M revenue by segment included cards operations EGP 1.136bn, installations and consultancy EGP 882.5m, and technical support EGP 253.9m.

• Digital Operations revenue rose 44.6% to EGP 2,496.8m before eliminations; transaction revenue grew 59.1%, cloud hosting 59.8%, and build-and-operate 16.0%.

• eCards revenue was EGP 213.7m, down 1.1%; card management revenue rose 125.7% to EGP 117.1m, offsetting lower card production revenue.

• eKhales revenue rose 53.8% to EGP 60.6m; its POS network reached 547,000 terminals and transactions grew 29.9% to 64.9m.

• eAswaaq revenue rose 71.4% to EGP 161.0m before eliminations; post-elimination revenue fell 73.9% on the prior-year one-off supply contract.