Fawry for Banking Technology and Electronic Payments (FWRY) Q3 2024 earnings summary

Executive summary

• 3Q24 revenue grew 77% YoY, the fastest growth since 2015; throughput rose 82% to EGP 174bn, its highest growth rate.

• EBITDA and net income more than doubled YoY, with record EBITDA and net income margins of 51.9% and 30.9%.

• 9M 2024 operating revenue reached EGP 3.845bn versus EGP 2.317bn, while net profit after tax rose to EGP 1.205bn from EGP 556.2m.

• Total assets were EGP 11.439bn at September 30, 2024, compared with EGP 8.972bn at December 31, 2023.

Financial highlights

• 3Q24 revenue reached EGP 1,546mn, up 77% YoY; excluding airtime, growth would have been 89%, while airtime revenue grew 22%.

• 3Q24 EBITDA increased 119% YoY to EGP 366mn; net income rose 135% to EGP 478mn.

• 9M 2024 gross margin was EGP 2.542bn, operating profit EGP 1.602bn and profit before tax EGP 1.604bn.

• 9M net profit attributable to parent shareholders was EGP 1.107bn; non-controlling interests received EGP 98.8m.

• 9M operating costs were EGP 1.303bn; general and administrative expenses were EGP 748.9m and selling and marketing expenses EGP 479.7m.

Segment performance

• ADP revenue increased 38% YoY to EGP 482mn; throughput grew 36%.

• Agent Banking revenue rose 113% to EGP 350mn; Acceptance revenue increased 90% to EGP 312mn.

• Supply Chain revenue grew 43% to EGP 93mn as throughput rose 29%, supported by inflation and increased adoption.

• 9M banking technology and e-payment revenue was EGP 3.243bn versus EGP 2.052bn; segment profit was EGP 1.525bn versus EGP 706.3m.

• 9M lending revenue was EGP 602.2m versus EGP 265.1m; segment profit was EGP 79.3m versus EGP 36.2m.