Interswitch Holdings Limited, a Nigerian payments firm has reported loss before tax of N1.67 billion for the year ended 31 March 2024, largely due to devaluation of the Nigerian naira and operational losses from charge back fraud.
During the course of the year, the Central Bank of Nigeria (CBN) Naira exchange rate moved from N460 per $1, to N1,300 per $1. This resulted in crystalised losses on Interswitch’s foreign exchange liabilities and payments, which impacted the bottom-line as Nigeria represents 94% of Group’s revenue.
There was also the issue of charge back fraud which Interswitch experienced in the 2024 financial year, relating to merchant acquiring activities leading to operational losses of N11.45 billion.
“Recovery of the proceeds of fraud is still ongoing and is expected to complete in 2025, as some court cases and the conversion of acquired assets to cash continues,” Interswitch said in its financial statement seen by MoneyCentral.
Consolidated revenue for the year however grew to N91.y65 billion, up 38% from the prior year. The Digital Payment segment which represented 72% of the consolidated revenue for the year, grew 41%, mainly due to volume growth from new and existing customers, the Digital Ecosystem and Enablement segment representing 23% of revenue grew by 39% year on year, while Digital Commerce and Inclusion representing 5% of revenue decreased by 2%.
Consolidated Gross margin across the 3 segments remained flat at 89%.
The Total Assets of the business grew to N169.7 billion, while Total li abilities stood at N116.3 billion. The consolidated cash balance of the Group moved to N43 billion at the end of the year from N30.4 billion at the beginning of the year.
Interswitch paid N5.4 billion in corporate taxes for the period.
Interswitch Holdings Limited was incorporated on 13 August 2019 as a private company limited by shares. Interswitch Holdings acquired 100% of the shares of Interswitch Limited on 5 November 2019 via a share exchange agreement as part of the Group reorganization exercise.
Ignite Holdco Limited is the principal shareholder in Interswitch Holdings Limited and held 51.64% of the issued share capital of the Company as at 2023. Visa held 19.37%, Peridot Inclusion Pte Ltd held 14.57%. Other shares of the Company are principally held by Nigerian investors.
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