Fawry for Banking Technology and Electronic Payments (FWRY) Q1 2023 earnings summary

Executive summary

• Q1 operating revenue was EGP 675.7m; throughput rose 65% to EGP 68bn, while adjusted net profit reached EGP 147m, up 242%, and reported net profit was EGP 142.1m.

• Growth spanned acceptance, microfinance, agent banking, supply chain and digital activity.

Financial highlights

• Operating revenue rose 40% to EGP 675.7m from EGP 483.0m; excluding airtime, revenue growth would have been 48%, while airtime revenue grew 13%.

• EBITDA increased 79% to EGP 240m; adjusted net profit was EGP 147m versus EGP 43m, up 242%.

• Gross margin was EGP 418.8m versus EGP 278.7m; operating profit and profit before tax were EGP 191.5m versus EGP 64.7m.

• Net profit after tax was EGP 142.1m versus EGP 47.8m; parent-attributable profit was EGP 123.3m versus EGP 28.2m.

• Operating costs rose to EGP 256.9m from EGP 204.3m; G&A was EGP 170.3m and selling and marketing EGP 107.6m.

Segment performance

• ADP revenue increased 13% YoY to EGP 278mn; ADP throughput value rose 30%.

• Banking technology and e-payment revenue was EGP 593.4m versus EGP 435.7m; segment profit was EGP 177.2m versus EGP 55.6m.

• Acceptance revenue grew 99% to EGP 116mn; instore acceptance rose 169%, enabled POS increased 26% to 266k, and online acceptance revenue grew 61%.

• Agent banking revenue rose 41% to EGP 134mn.

• Microfinance revenue was EGP 82.3m versus EGP 47.3m; segment profit was EGP 14.3m versus EGP 9.2m. Supply chain throughput grew 97% and revenue rose 81% to EGP 45mn.