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Nine-month pretax profit climbed 83% to ₦20.58 billion.
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Third-quarter operating profit fell 3.6% despite revenue growing 36.4%.
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Personnel expenses more than doubled, driving most of the quarterly cost increase.
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A higher tax charge pushed quarterly profit after tax down 7.1%.
October 26, (THEWILL) – NGX Group brought in more business during the third quarter, but rising expenses consumed the additional income and part of its operating profit. For shareholders drawn to its 83% increase in nine-month pretax earnings, the latest quarter presents a more demanding test of the company’s performance.
The group’s unaudited results show nine-month pretax profit of ₦20.58 billion on revenue of ₦27.26 billion. However, third-quarter operating profit declined 3.6% to ₦4.25 billion, despite revenue growing 36.4%. Operating expenses rose 62.6%, while quarterly profit after tax fell 7.1% to ₦4.33 billion.
Staff Costs Account for Most of the Increase
Personnel expenses climbed to ₦3.38 billion from ₦1.63 billion a year earlier. That increase accounted for approximately 76% of the additional quarterly operating expenses, calculated from the filing. Salaries and other staff benefits supplied almost all the increase in personnel costs.
The accompanying note does not separate recruitment, salary adjustments, bonuses or exceptional payments. Consequently, it does not establish how much of the increase will recur.
General expenses also rose sharply, reaching ₦564.6 million from ₦29 million. Meanwhile, other income declined to ₦573.8 million from ₦1 billion, compounding the pressure on operating earnings.
For investors, the composition of these expenses is central to assessing future profitability. A one-off payment would affect forecasts differently from a permanent increase in payroll, even though both reduce profit in the quarter they are recognised.
Higher Tax Reduces the Final Profit
Third-quarter pretax profit edged up approximately 1% to ₦5.83 billion, helped by the absence of finance costs and a slightly higher contribution from investees. However, the tax charge increased to ₦1.50 billion from ₦1.11 billion, leaving shareholders with lower after-tax earnings.
The strong nine-month result reflects substantial gains earlier in the year. NGX Group’s first-half earnings release reported 170% growth in pretax profit to ₦14.76 billion, supported by higher transaction activity and stronger investee contributions. Transaction fees increased 169%, while operating profit rose 155%.
That earlier performance explains how cumulative earnings can remain impressive even as the latest quarter loses momentum. Comparing January-to-September totals alone would miss the change in the relationship between income and expenses.
Shareholders must also separate the exchange owner’s business performance from returns earned by people trading on its market. Greater trading activity can generate fees for an exchange without ensuring that individual investors make money.
The third-quarter figures establish cost pressure, but they do not establish a lasting deterioration. A management explanation of the staff-cost increase, including any exceptional payments, would help investors assess how much revenue growth the business needs to sustain future profits.
Joy Onuorah is a business journalist and brand communications specialist covering financial markets, artificial intelligence, digital economy, and the ideas reshaping business across Africa and the global market. Beyond her reporting for TheWill, Joy uses brand strategy, storytelling, copywriting, and high-value SEO to help brands build lasting market authority.
