e-finance for Digital and Financial Investments (EFIH) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 47.5% YoY to EGP 3,898.6m; EBITDA increased 64.5% to EGP 1,836.6m.

• Net profit after NCI grew 56.4% to EGP 1,257.7m; profit attributable to owners was EGP 1,258m.

• Adjusted net profit rose 61.2% to EGP 1,529.3m, with a 39.2% margin.

• Total comprehensive income reached EGP 1.935bn, including EGP 876.8m of fair-value gains on FVTOCI investments before related tax.

• Year-end assets were EGP 7.635bn, equity EGP 5.600bn and cash and cash equivalents EGP 1.505bn.

Financial highlights

• FY2023 gross profit rose 56.8% to EGP 2,141.0m; operating profit was EGP 1.229bn and profit before tax EGP 1.850bn.

• Q4 revenue rose 60.6% YoY to EGP 1,133.8m; gross profit grew 129.1% to EGP 650.5m and EBITDA rose 155.3% to EGP 522.7m.

• Q4 net profit after NCI fell 9.2% to EGP 110.3m, while adjusted net profit rose 64.1% to EGP 381.9m.

• FY2023 investment income rose 122.5% to EGP 114.6m; interest income grew 49.1% to EGP 499.8m.

• Income tax expense was EGP 582.8m; the reported effective tax rate was 31.51%.

Segment performance

• Digital Operations revenue rose 45.8% to EGP 3,527.6m; transaction revenue grew 59.0% to EGP 1,351.1m and cloud hosting revenue rose 64.6% to EGP 1,282.2m.

• Digital Operations variable-fee transaction revenue increased 69.6% to EGP 840.4m; throughput rose 19.7% to EGP 1,121.3bn.

• eAswaaq revenue rose 114.7% to EGP 303.3m; enable revenue increased 39.8% to EGP 120.1m.

• eKhales revenue reached EGP 92.5m; its POS network grew 12.3% to 574,000 terminals and aggregated transactions increased 31.3% to 88m.

• eCards revenue was EGP 226.7m; card-management revenue rose 99.9% to EGP 157.6m, partly offset by card-production revenue falling 39.8% to EGP 68.7m.