Africa Prudential Plc has reported a 21 percent increase in gross revenue in the first nine months of 2022.
The firm’s gross revenue reached N2.97 billion, the highest in five years from N2.45 billion which indicates a 21 percent increase.
Africa Prudential, in a press statement, said “we recorded a 37 percent year-on-year growth in revenue from contracts with customers, driven by a 115 percent year-on-year growth in digital technology services.”
Revenue from contracts with customers amounted to N1.15 billion, up 37.2 percent from N838.1 million in the third quarter of 2021.
BusinessDay analysis revealed digital technology services contributed 54.5 percent, corporate actions (27.6%), and registrar maintenance (17.8%) to the total revenue obtained from contracts with customers in the third quarter of this year.
The firm’s profit after tax jumped 12 percent to N1.29 billion, compared to N1.15 billion in the third quarter of 2021.The firm’s PAT margin stood at 43 percent in the third quarter of 2022 from 45 percent in the third quarter of 2021.
Interest income surged by 13.7 percent to N1.82 billion in the nine-month ended 2022 from N1.6 billion in the same period of 2021.
“During the period, interest income increased by 13 percent year-on-year on account of an increase of 14 percent and 9 percent in the interest on loans & advances, and bonds. However, with a 44 percent decline in interest on short-term deposits,” Africa Prudential said in a note.
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Interest on Africa Prudential’s loans and advances surged to N1.7 billion, up 13.3 percent from N1.5 billion in the nine-month of 2021.
Interest on bonds climbed to N118 million in the nine-month ended 2022, a 9 percent increase from N108 million in the same period of 2021.
Interest on short-term deposits, however, dropped 43.7 percent to N4.5 million in the nine-month ended 2022 from N8 million in the nine-month ended 2021.
Commenting on the result, the managing director/CEO of Africa Prudential, Obong Idiong, said “Our results remain a testament to the impact of our deliberate efforts at diversifying and strengthening our revenue lines to multiple income lines, innovating new ways to deliver value, and adopting cost efficiency in every facet of our operations.
“The 115 percent growth in digital technology income highlights the success of our switch to a technology-oriented business and we remain positive about the potential growth from this revenue stream in the medium to long term. As we venture into the last quarter of the year, we will continue to deploy value to our customers leveraging innovation and technology to transform their experience and increase shareholder wealth,” he noted.
EBIT margin surged to 54 percent in the third quarter of this year from 53 percent in the third quarter of 2021.
The asset turnover ratio of the firm stood at 0.20 in the third quarter of 2022 from 0.19 in the same period of 2021.
Earnings per share stood at N64 in the nine months of 2022 from N58 in the same period of last year.
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