Ibrahim Sarhan
Chairman & CEO
In FY2023, the Group achieved a notable 47.5% year-on-year increase in its top-line revenue, reaching EGP 3.9 billion, propelled by robust expansion across all its subsidiaries. Particularly noteworthy was the outstanding performance of eFinance Digital Operations, which saw a significant uptick in revenue derived from its lucrative and fast-growing cloud hosting services segment. This was complemented by the steady growth in revenues from our build and operate business segment and transactions’ revenue, with a stellar 69.6% year-on-year increase in variable fee revenue, fueled by the ongoing expansion of digital payment solutions adoption across vital sectors.
In terms of profitability, the Group booked a record-high net profit of EGP 1.3 billion, up by 56.4% year-on-year with an associated net profit margin of 32.3% for the year. This achievement is a testament to the Group’s strength and ability to derive remarkable returns from its higher margin revenue streams. It also reflects management’s diligent and successful role in applying a multidisciplinary strategy to mitigate and reduce the impacts of Egypt's unfavorable FX environment.
eFinance is successfully positioned as a pivotal digital transformation enabler for financial services in support of Egypt’s financial inclusion agenda. In 2023, we were committed to bolstering information security within digital banking amidst a backdrop of increasing cyber threats plaguing the region. Recognizing the paramount importance of trust and reliability in digital banking landscape, we employed cutting-edge technologies, multi-factor authentication protocols, and continuously monitored systems to mitigate risks and ensure the confidentiality of users.
Our cloud infrastructure also represents a solid platform which can be used to establish eFinance's presence in Egypt's financial sector and provide an innovative suite of financial services.
Moreover, as pioneers in the market leading the shift to cloud services, I am pleased to report that during the Cairo ICT conference in November 2022, we successfully launched Egypt’s largest cloud computing platform. The Group’s landmark launch reflects our efforts in supporting and enhancing public and private sector businesses and organizations in driving and enabling the growth and scalability of their operations. This milestone also marks the first-ever license issued by the National Telecom Regulatory Authority (NTRA) to a private company to operate a cloud computing platform in Egypt and stands testament to eFinance’s strong capabilities and expertise in this space. The Group has already built a solid tech infrastructure that has served a wide array of clients across a multitude of industries, and I am confident that the launch of our new cloud computing platform will play a pivotal role in accelerating Egypt’s digital transformation agenda.
eFinance's focus in financial services will be to establish greater proximity to the end-client than exists with our current businesses
Whether such clients are corporates or individual accounts. As such, the Group remains on the lookout for opportunities that will strengthen and enhance our position as the Egyptian leader in fintech, with possible avenues ranging from participation in venture capital funds to full-fledged mergers and acquisitions. eFinance is seeking to play a greater role in Egypt's thriving fintech startup scene, using our resources and infrastructure to incubate and promote dynamic new companies that interact synergistically with the Group's existing offerings. Over the long term, eFinance aims to gain healthy exposure to each link of the full fintech value chain.
Meanwhile, eFinance aims to fully leverage Egypt's impressive economic growth and is expanding aggressively into dynamic sectors that have received growing attention, including agriculture, tourism, transportation, and more. We have already made headway in each of these spheres through our various subsidiaries, and we are also excited to fulfill the mandate we've been given to help roll out universal health insurance across all governorates.
Exciting Times for eFinance Investment Group
We remain steadfast in our commitment to assisting private and public sector entities in their digital transformation endeavors. With strategic decisions, our extensive network of partnerships, and innovative solutions, we are well-positioned to capture opportunities and drive growth. I am confident that eFinance will not only maintain its robust performance but also create increased value for the Group and its shareholders in the coming year.
