e-finance for Digital and Financial Investments (EFIH) Q3 2024 earnings summary

Executive summary

• 9M2024 revenue rose 24.5% YoY to EGP 3,443.2mn; net profit after NCI increased 21.5% to EGP 1,393.5mn, a record high.

• Broad-based subsidiary growth and investment income supported earnings; EBITDA increased 18.1% to EGP 1,552.2mn.

• The interim review conclusion was qualified over expected credit losses and uncertainties in investment fair values and comparative reporting.

Financial highlights

• 9M reported net profit was EGP 1.430bn versus EGP 1.160bn in 9M2023; 9M net profit after NCI was EGP 1,393.5mn.

• 9M gross profit increased 21.3% YoY to EGP 1,808.5mn; cost of sales rose 28.3% to EGP 1,634.7mn.

• 3Q2024 revenue rose 12.7% YoY to EGP 1,159.9mn; net profit after NCI increased 47.0% to EGP 630.8mn.

• Investment income reached EGP 395.0mn, up 410% YoY; interest income fell 28.9% to EGP 276.5mn.

• 9M finance income was EGP 545.1mn versus EGP 389.3mn; finance costs were EGP 114.2mn versus EGP 50.6mn.

Segment performance

• Digital Operations revenue grew 25.7% YoY to EGP 3,139.1mn; transaction revenue rose 26.2%, cloud hosting 20.8% and build-and-operate revenue 14.6%.

• eCards revenue before eliminations increased 25.2% to EGP 267.6mn, led by card production growth of 57.7%; post-elimination revenue fell 28.2% to EGP 116.7mn.

• eKhales revenue before eliminations rose 68.1% to EGP 101.9mn; aggregated transactions increased 10% to 71mn and its POS network reached 600,000 terminals.

• eAswaaq revenue before eliminations grew 38.9% to EGP 223.5mn; post-elimination revenue rose 605.2% to EGP 103.8mn, supported by tourism and lending activity.

• enable revenue edged up 0.4% YoY to EGP 87.0mn; clients served remained at 55 and seats increased 1.7%.