Fawry for Banking Technology and Electronic Payments (FWRY.CA), Egypt’s leading e-payments and digital finance solutions provider, announced its consolidated results for the first half of 2023. The company recorded impressive growth in both revenues and profitability, demonstrating its ability to adapt to evolving consumer needs and its commitment to diversifying services.

Financial Highlights:

Fawry achieved a significant expansion in its top-line during the first six months of 2023, with revenues reaching EGP 1,444.2 million, a remarkable 42.4% increase compared to the same period last year. The company’s Banking Services segment was the driving force behind this growth, contributing 52.3% of consolidated revenue expansion. On a quarterly basis, Fawry posted total revenues of EGP 768.5 million, marking a 44.6% YoY increase.

The company’s adjusted net profit witnessed substantial growth, reaching EGP 327.9 million, representing a remarkable 290.4% YoY increase, and yielding an impressive net profit margin (NPM) of 22.7%. Statutory net profit came in at EGP 283.1 million, showcasing a significant 441.2% YoY growth.

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Operational Milestones:

Fawry’s operational achievements were equally noteworthy. The company’s EBITDA and net income margins reached record levels, underscoring its strong financial management. Moreover, Fawry achieved a new milestone by processing 5 million transactions daily in June 2023, highlighting its operational and technical prowess.

The mobile wallet transactions and throughput value demonstrated remarkable growth, recording 67.6 million transactions and EGP 80.5 million in value during the six-month period, reflecting a rise of 73.9% and 107.7% YoY, respectively.

CEO’s Perspective:

Fawry’s Chief Executive expressed pride in the company’s financial and operational achievements, emphasizing its strong customer base and diverse service offerings. The impressive revenue growth of 42.4% in 1H2023 reflects Fawry’s adaptability to consumer needs and its commitment to diversification. The CEO also highlighted Fawry’s profitability, attributing it to vigilant cost control efforts in response to the country’s increased inflation since 2022.

Segment Analysis:

Fawry’s Banking Services segment was a standout performer, contributing 52% to consolidated revenue growth in 1H2023. The segment’s impressive growth of 69.7% was fueled by contributions from both its Acceptance and Agent Banking businesses. The Alternative Digital Payments (ADP) segment, while maintaining its position as the largest revenue contributor, has been gradually declining as Fawry diversifies its revenue streams.

Future Outlook:

The company’s positive start to the year positions it for continued growth in the second half of 2023. Fawry’s ability to evolve to meet changing demand is expected to solidify its position as Egypt’s leading provider of digital finance solutions.

A Look At Fawry:

Founded in 2008, Fawry is Egypt’s largest e-payment platform, catering to both banked and unbanked populations. Its services encompass electronic bill payments, mobile top-ups, e-ticketing, cable TV, and more. With a network of 36 member banks, a mobile platform, and numerous agents, Fawry processes over 4 million transactions daily, serving an estimated 51 million users monthly.

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Financial and Operational Highlights:

• Total Revenue: EGP 1,444.2 million (42.4% YoY increase)
• Adjusted Net Profit: EGP 327.9 million (290.4% YoY increase)
• Mobile Wallet Transactions: 67.6 million (73.9% YoY increase)
• EBITDA: EGP 545.4 million (Associated Margin: 37.8%)
• Recorded Daily Transactions: 5 million in June 2023

Segment Breakdown:

• Banking Services: 52.3% contribution to revenue growth
• Alternative Digital Payments: 40.3% of consolidated revenues in 1H2023
• Microfinance: 11.6% contribution to consolidated results
• Supply Chain Solutions: 9.7% contribution to revenue growth

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard