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Habari Pay post N1.3 billion profits in 6 months, up 300%

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GTCO’s fintech subsidiary, Habari Pay reported a profit after tax of N1.3 billion in the first half of 2023 up from N322.9 million a year earlier.

This represents a 4 fold increase in profits year on year signalling the holdco’s earnings ability as it continues to leverage on its economies of scale.

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Habari Pay through its “Squad” platforms allows the bank’s customers to shop for diverse products online, pay bills, watch videos, and listen to music, among others. The subsidiary has a Switching and processing license from the central bank and a VAS license from the NCC.

Results Highlights – A cursory review of its 2023 half-year results reveals the company generated an operating income of N2.2 billion.

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  • It also incurred N688 million and N188 million on operating expenses and taxes respectively.
  • Total assets were also N5.65 billion up from N4 billion reported a year earlier.  The subsidiary also closed with a cash balance of N3.6 billion.
  • GTB owns 100% of Habari Pay and according to its financials, it had invested about N3.1 billion in the company as of June 2023.

Company Milestones – Earlier in the year, the company reported that Habari Pay generated revenue of N1.52 billion in 2022 and a pre-tax profit of N926 million. The company only operated for 6 months in 2022.

  • It also reported that it has been profitable from month 1 and has crossed N200 billion in monthly transactions as of January 2023.
  • The company has also seen its merchant and acquiring business grow reporting gateway and switching averaging N139.3 billion recording a 1,398% growth. International payments also rose $175, 927 or 3,187% monthly.
  • This is according to information contained in its Investor Presentation for 2022 annual reports.
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Habari Pay operates in Nigeria’s lucrative FinTech industry which is also characterized by intense competition. Most tier 1 banks also have similar platforms within their HoldCo operating entities.

The birth of HabariPay started with GTBank’s launch of Habari mobile app in 2018 as a digital platform for music, shopping, lifestyle content, and others.

Last June, GTCO secured the final approval from the Central Bank of Nigeria (CBN) for HabariPay Limited as a wholly-owned payment subsidiary.

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HabariPay had hit the ground running with the launch of Squad, a digital payments platform to provide customers with the tools to do business digitally. HabariPay’s Squad is now competing with the likes of Interswitch, Paystack, and Flutterwave in the same arena.

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