Fawry for Banking Technology and Electronic Payments (FWRY) Q4 2023 earnings summary

Executive summary

• Q4 throughput reached EGP 105bn; revenue rose 47% YoY to EGP 955mn, EBITDA increased 72% to EGP 407mn, and net profit rose 97% to EGP 229mn.

• FY2023 revenue was EGP 3.272bn and net profit after tax was EGP 816.0m; auditors issued an unmodified opinion under Egyptian Accounting Standards.

Financial highlights

• Q4 throughput grew 69% YoY to EGP 105bn; revenue rose 47% to EGP 955mn and net profit increased 97% to EGP 229mn.

• FY2023 operating revenue was EGP 3.272bn versus EGP 2.279bn; operating profit reached EGP 1.066bn versus EGP 448.1m.

• FY2023 profit before tax was EGP 1.095bn versus EGP 444.5m; net profit after tax was EGP 816.0m versus EGP 327.1m.

• Parent-company net profit was EGP 715.3m versus EGP 240.1m; basic and diluted EPS were EGP 0.18 versus EGP 0.08.

• Q4 EBITDA rose 72% YoY to EGP 407mn; revenue excluding airtime would have grown 54%, versus 17% growth in airtime.

Outlook and guidance

• FY2024 revenue growth guidance is 35%+; EBITDA margin is expected to improve by 2%.

• FY2024 capex-to-sales guidance is 21%.

• Financial services are targeted to reach 22% of revenue in 2024, up from 19% in 2023.

• Medical insurance products are planned for 2024, alongside P2P and remittances through the myFawry portfolio.