The consolidated revenues of e-finance rose by 39.5% y-o-y to record EGP 1.262bn, with strong top-line growth recorded at most of the Group’s subsidiaries.
The Group achieved a net profit after noncontrolling interests (NCI) of EGP 479.7m for 1H 2022, an increase of 72% y-o-y yielding a net profit margin (NPM) of 38.0% against the 30.8% recorded last year.
On a quarterly basis, the Group booked revenues of EGP 702.5m, an increase of 59.3% y-o-y, with net profit after NCI climbing by 104.8% y-o-y to EGP 279.3m to yield a NPM of 39.8% against the 30.9% booked for the same quarter of the previous year.
The Group’s flagship subsidiary, e-finance for Digital Operations, saw revenue growth of 34.4% y-o-y in 1H 2022, recording EGP 1.091bn after intercompany eliminations. Revenue from the subsidiary’s financial cloud services business continued to expand during the period, rising by 136.7% y-o-y and generating 28.1% of the subsidiary’s revenues in 1H 2022, up significantly from the 16.0% booked for 1H 2021. The subsidiary also saw its total transaction based revenue grow by 10.6% y-o-y to EGP 413.3 million in 1H 2022 from EGP 373.6m last year. Revenue from variable fee transactions climbed at a rapid 241.1% y-o-y during 1H 2022. Fixed-fee transaction revenue declined by 34.9% y-o-y after the subsidiary applied a revenue amortization treatment for income from tax declarations, in line with the Group’s strategy of shifting towards more profitable variable fee transaction revenue. During the comparable period, tax declaration revenue had been recognized directly upon collection.
Additionally, revenue at eCards decreased by 6.5% y-o-y in 1H 2022, booking EGP 51m after intercompany eliminations against EGP 54.5m for 1H 2021.
Meanwhile, eAswaaq’s post-elimination revenue rose rapidly y-o-y to book EGP 52.8m in 1H 2022 against EGP 0.03m in 1H 2021. The bulk of the subsidiary’s revenue growth was driven by a one-off supply contract for the VSLA Project, in addition to the rollout of its digital ticketing service at 27 operational touristic sites, which will generate recurring revenues for the company.
Moreover, eNable also saw strong revenue growth during the period, booking post-elimination revenues of EGP 27.2m in 1H 2022 versus EGP 5.8m one year previously, with growth driven by expansion in its client base.
Khales recorded EGP 20.4m in post-elimination revenues for the six-month period, down by 20.3% y-o-y. The decrease reflects the booking of approximately EGP 15.1m in one-time POS sales completed during the comparable period of 1H 2021. Once one-off POS sales from the comparable period are excluded, Khales records significant y-o-y revenue growth of 68.9% y-o-y, reflecting growth in the subsidiary’s core aggregation business.