Growth in Nwassa Agri-Fintech Business Drives 64.8% Increase in Revenues and 53.9% Increase in Operating Profit for Q3 2022 Compared to Q3 2021
NEW YORK, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Tingo, Inc, OTC Markets (TMNA) (“Tingo” or the “Company”) filed its quarterly report on Form 10-Q, wherein the Company reported its financial results for the three and nine months ended September 30, 2022. The following are some of the highlights:
- Revenues. Net revenues totalled $291.7 million for Q3 2022 as compared to $177.0 million for Q3 2021, an increase of 64.8%. For the nine months ended September 30, 2022, net revenues were $817.4 million as compared to $317.5 million for the nine months ended September 30, 2021, an increase of 157.4%.
- Gross Profit. Q3 2022 gross profit amounted to $268.8 million as compared to $174.7 million for Q3 2021, an increase of 53.9%. For the nine months ended September 30, 2022, gross profit was $789.1 million as compared to $310.9 million for the nine months ended September 30, 2021, an increase of 153.8%.
- Operating Income. Q3 2022 operating income amounted to $149.5 million as compared to a Q3 2021 operating loss of $29.3 million. For the nine months ended September 30, 2022, operating income was $342.7 million as compared to $59.2 million for the nine months ended September 30, 2021, an increase of 478.9%.
- Agri-Fintech Revenue Growth from Q2 2022. On a quarter-on-quarter basis, Agri-Fintech revenue, generated through Tingo’s Nwassa agri-fintech marketplace platform, grew by $8.2 million from $130.9 million in Q2 2022 to $139.1% million for Q3 2022, an increase of 6.3%.
- Agri-Fintech Revenue as an Increasing Component of Overall Revenue. Q3 2022 agri-fintech revenue amounted to $139.1 million, or 47.7% of total revenue, with mobile telephony, data and leasing comprising the remainder. By comparison, during Q3 2021, agri-fintech revenue amounted to $56.5 million, or 31.9% of total revenue. Year-on-year quarterly growth for agri-fintech revenues was 146.2%.
- Merger Transaction with MICT. The Company’s filing of a definitive Information Statement on Schedule 14C on November 9, 2022, marked a major milestone in progressing towards the completion of the merger of Tingo Mobile PLC, the Company’s sole operating subsidiary (“Tingo Mobile”), with MICT, Inc., a Nasdaq-traded financial technology firm.
Tingo’s Nwassa business, which is comprised of several fintech solutions, including the Company’s proprietary agri-fintech platform, in addition to airtime top-ups, mobile telephone insurance, utility payments, and brokerage on loans, accounted for approximately 48% of total revenues in Q3 2022, growing by 6.3% quarter-on-quarter and by 146.2% for the 9 months to September 30, 2022, compared to the year ago period. The Company believes the continued growth in its revenues from Nwassa is indicative of the value generated by its Agri-Fintech services for its 9.3 million existing mobile leasing customers. Tingo is also seeing an increasing number of its mobile leasing customers register for the Nwassa services.
On October 20, 2022, as part of its expansion strategy, Tingo Mobile signed an agreement with the All Farmers Association of Nigeria (AFAN), the umbrella body of the 56 recognized commodities and agricultural associations in Nigeria. Under the terms of the agreement, AFAN has committed to enroll a minimum of 20 million new subscribers with Tingo Mobile, which would more than triple its existing customer base of 9.3 million.
On November 10, 2022, Tingo Mobile announced it had launched operations in Ghana. Tingo Mobile also announced it had signed a landmark trade agreement with the Kingdom of Ashanti, in connection with which it will provide the Nwassa agri-fintech services and the soon to be launched TingoPay fintech platform to the Kingdom’s agricultural sector, as well as throughout Ghana. Under the terms of the agreement, the Kingdom of Ashanti has committed to enroll a minimum of 2 million new members with Tingo within 120 days of signing and also agreed to a target to increase such enrollments to at least 4 million members.
In addition to the international expansion of Tingo Mobile’s business, progress continues to be made towards the launch of the Company’s ‘SuperApp’ and its ‘Tingo Pay’ digital wallet, which is in partnership with Visa. After a successful beta trial, the full-scale launch of the ‘Super App’ and ‘Tingo Pay’ is expected in the fourth quarter of 2022. These highly complementary services to Tingo Mobile’s existing offering will promote financial inclusion to millions of farmers and agricultural workers, providing them with access to a range of value-added services and the banking ecosystem.
In parallel to the ongoing growth and development of Tingo’s business, the Company continues to progress towards the completion of the merger of Tingo Mobile with Nasdaq listed fintech company MICT, Inc., which is expected to close on or about November 30, 2022.
Commenting on the financial results of the Company for the third quarter of 2022, Dozy Mmobuosi, Chief Executive Officer, stated: “We are pleased to once again report a strong set of results, where we have achieved further robust growth in both revenue and earnings. With our revenues now tracking at almost $1.2 billion per annum, and operating income tracking at approximately $600 million per annum, we believe the Company is well positioned to deliver a further increase in profitability in Q4 2022, followed by an acceleration in growth in 2023.
At the end of the third quarter, our Nwassa Agri-fintech platform accounted for 48% of total revenue, which is evidence of the strong level of trust and loyalty we have built with our existing customer base of circa 10m subscribers in Nigeria. We continue to see a significant increase in transaction numbers, which clearly underlines the value that our Nwassa platform delivers to its customers.
We are on track to launch the Tingo Pay SuperApp in the fourth quarter of this year, which we believe will provide even greater commercial opportunities and financial empowerment for our customers, as well as a further incentive to other farmers and potential new customers to become subscribers to our marketplace and fintech platforms.
Our recent agreement with the All Farmers Association of Nigeria (AFAN), commits them to add a minimum of 20 million new subscribers to Tingo Mobile, which would more than triple our existing customer base. We believe that the addition of these subscribers will drive significant further growth across all our revenue lines, whilst also considerably increasing our profitability.
With the additional resources we have accessed through our pending merger of Tingo Mobile with MICT, we have recently achieved a major milestone towards our goal of international expansion, through the recent launch of operations in Ghana. Our trade deal with Ghana’s esteemed Kingdom of Ashanti, which includes their commitment to enroll a minimum of 2 million new customers, as well as a target to enroll at least a further 2 million customers, is expected to markedly accelerate our rollout there.
The combination of our growth in revenues and earnings from our existing customer base and our expansion into new products, such as Tingo Mobile, as well as our signing of significant new trade deals, and our international expansion, gives us significant potential for both short-term and long-term growth. In addition, our soon to be completed merger with MICT is allowing us to accelerate a number of key parts of our expansion strategy, including in relation to the forthcoming launch of a commodity platform and our export business. Most importantly, as we continue to deliver against strategy, we remain focussed on our vision and over-arching objective of striving to make a difference towards improving global food supply and tackling the world’s food security crisis.”
Tingo is the leading Agri fintech company operating in Africa, with a marketplace platform that empowers social upliftment through mobile, technology and financial access for rural farming communities. Our unique ‘device as a service’ model allows us to add market leading applications to enable customers to trade, buy top ups, pay bills, access insurance and lending services. With 9.3 million existing leasing customers, Tingo is seeking to expand its operations across select markets in Africa. The Company’s strategic plan is to become the eminent Pan African Agri-Fintech business delivering social upliftment and financial inclusion to millions of SME farmers and women-led businesses. Additional information about the Company can be found at www.tingoinc.com.
Safe Harbor and Forward-Looking Statements
This press release contains certain forward-looking statements regarding possible future circumstances. These forward-looking statements are based upon the Company’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, any risks and uncertainties with respect to the Company’s operations, as well as those contained in the Company’s quarterly, annual, and periodic filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statements are material.
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Chief of Staff – Tingo Inc