Nigeria’s listed technology and payments firms posted sharply contrasting half-year results, with CWG Plc and eTranzact International Plc delivering profit growth, while Chams Plc suffered steep earnings drop despite higher sales.
This highlights how cost structures and investment cycles are shaping outcomes in the sector that saw significant growth in the first six months of 2025.
CWG led the pack with a 113 percent surge in profit after tax to N3.56 billion in H1 2025, from N1.67 billion a year earlier, as revenue rose 18.3 percent to N28.4 billion. The company credited stronger enterprise IT demand and cost discipline for the gains.
E-Tranzact’s revenue slipped 5.4 percent to N13.28 billion, but profit grew 18 percent to N1.51 billion, aided by higher transaction volumes, improved settlement processes, and a leaner operating model that kept costs in check.
Chams, meanwhile, expanded turnover by 18.8 percent to N9.88 billion, but profit after tax plunged 55 percent to N339.2 million.
The company has been in an aggressive investment phase, with heavy spending on platform upgrades, new product rollouts, and expansion into emerging digital ID and payments segments — costs that have yet to translate into proportionate revenue gains.
Analysts say the divergence reflects different stages in corporate strategy: CWG and eTranzact are reaping efficiency dividends after earlier investments, while Chams is absorbing short-term profitability hits in pursuit of longer-term market share.
The three companies together generated N51.56 billion in revenue in the first half of 2025, representing an 8.6 percent increase over the same period in 2024.
Combined profit after tax rose 14.7 percent year-on-year to N5.41 billion, but performance was uneven across the board.
CWG stood out as the top performer both in revenue and profit growth, delivering N28.4 billion in turnover and more than doubling its bottom line.
E-Tranzact, despite a mild revenue contraction, managed to lift profits by nearly a fifth, signalling that its operational reforms are beginning to yield results. Chams posted the sharpest profit decline, down 55 percent, as its ambitious investment drive weighed on earnings.
Investor sentiment appears most favourable towards CWG, with analysts highlighting its margin expansion and strong cash generation as potential triggers for a market re-rating.
E-Tranzact’s ability to defend profitability despite topline pressure suggests a more resilient business model emerging. For Chams, the near-term outlook remains cautious, but the company’s ongoing infrastructure and product investments are seen as laying the foundation for future growth.
