Paga’s Valuation Challenge: $89.2 Million in Assets Yet to Translate into Strong Earnings or Profitability

…reports $9.1 Million in Operating Revenue for 2024 Fiscal Year

Paga, a UK-headquartered fintech group with subsidiaries in Nigeria, Ethiopia and the USA reported its total assets rose to $89.2 million as of 31 December 2024, but has yet to translate to strong earnings or profitability.

It reported operating revenue of $9.1 million in 2024.

The group’s earnings are mainly from fees and commissions on transactions such as bill payments, airtime purchases, payment collections on behalf of customers.

Between fiscal years 2020 and 2024, operating revenue grew from $2.1 million to $9.1 million, reflecting strong throughput over the period.

However, EBITDA remained constrained by high operating costs and a depreciating Naira which is the main earnings currency.

EBITDA became positive in fiscal 2023 and grew by 59.5% to $2.6 million in fiscal 2024 with a margin of 38.8%.

Paga maintains a low-geared balance sheet as debt accounted for 20% to 30% of total assets.

Also, the group’s existing debt is long-term dollar based with flexible repayment terms; however, the debt profile is expected to transition as local currency funding will be sought over the next 12 – 18 months, according to management.

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