Fawry for Banking Technology and Electronic Payments (FWRY) Q1 2024 earnings summary

Executive summary

• Q1 revenue reached EGP 1,087.2m, up 61% YoY; throughput was EGP 116bn, up 69% YoY and above EGP 100bn for a second consecutive quarter.

• Net profit was EGP 333.7m versus EGP 142.1m; parent-attributable profit was EGP 307.1m versus EGP 123.3m.

• EBITDA margin reached a record 46.6%; adjusted net income margin was a record 28.2%.

Financial highlights

• Revenue was EGP 1,087.2m, versus EGP 675.7m; excluding airtime, revenue growth was 69% YoY, compared with 26% airtime growth.

• EBITDA rose 111% YoY to EGP 507m; net profit was EGP 333.7m and parent-attributable profit EGP 307.1m.

• Gross profit margin was 65.8%, up from 62.0%; EBITDA margin was 46.6%, up from 35.5%.

• Operating profit was EGP 448.4m versus EGP 191.6m; profit before tax was EGP 446.8m versus EGP 191.5m.

• Revenue growth reflected a stated EGP 353m increase in throughput-related revenue and EGP 58.4m growth in micro- and consumer-finance revenue.

Outlook and guidance

• ADP grew 28% YoY and Agent Banking revenue grew 66% YoY, both exceeding guidance.

• Medical insurance products are planned for 2024, alongside P2P and remittance services.