Growth in Nwassa Agri-Fintech Business Drives 167% Increase in Revenues and 139% Increase in Operating Profit for Q2 2022 vs Q2 2021
NEW YORK, Aug. 23, 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 six months ended June 30, 2022. The following are some of the highlights:
- Revenues. Net revenues totalled $268.7 million for Q2 2022 vs. $100.7 million for Q2 2021, an increase of 166.8%.
- Gross Profit. Q2 2022 gross profit amounted to $164.2 million, an increase of 208.6% versus Q2 2021 gross profit of $53.2 million.
- Operating Income. Q2 2022 operating income amounted to $122.0 million, an increase of 139.2% as compared to Q2 2021 operating income of $51.0 million, and an increase of 71.3% on Q1 2022 operating income of $71.2m
- Non-GAAP Adjusted Operating Income. After adjusting for share-based compensation payments of $29.2 million during Q2 2022, non-GAAP adjusted operating income amounted to $151.2 million, up from $51.0 million in Q2 2021 and $143.2 million in Q1 2022.
- Agri-Fintech Revenue Growth from Q1 2022. On a quarter-on-quarter basis, Agri-Fintech revenue, generated through Tingo’s Nwassa Agri-Fintech marketplace platform, grew by $9.4 million from $121.5 million in Q1 2022 to $ 130.9 million for Q2 2022, an increase of 7.7%.
- Agri-Fintech Revenue as an Increasing Component of Overall Revenue. Q2 2022 Agri-Fintech revenue amounted to $130.9 million, or 48.7% of total revenue, with mobile telephony, data and leasing comprising the remainder. By comparison, during Q2 2021, Agri-Fintech revenue amounted to $35.0 million, or 34.8% of total revenue. Year-on-year growth of Agri-Fintech revenues was 274.0%.
- Merger Transaction with MICT. The Company’s filing of a joint registration and proxy statement with MICT, Inc. on July 26, 2022 marked a major milestone in progressing towards the completion of the merger announced by the parties on June 15, 2022.
Tingo’s Nwassa business 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. The Company believes the continued growth in its revenues from Nwassa is indicative of the value generated by such Agri-Fintech services for its 9.3 million existing mobile leasing customers. Tingo is also seeing an increasing number of its non-mobile leasing customers register for the Nwassa services.
Progress continues to be made towards the launch of the Company’s ‘SuperApp’ and its ‘Tingo Pay’ digital wallet, which is powered by Visa. After a successful beta trial, the full-scale launch of the ‘Super App’ and ‘Tingo Pay’ is expected in the second half of 2022. These highly complementary services will promote financial inclusion to millions of farmers and agricultural workers, providing them with access to the banking ecosystem.
In parallel to the ongoing growth and development of the Tingo’s business, the Company continues to progress towards the completion of its merger with Nasdaq listed fintech company MICT, Inc.
Commenting on the financial results of the Company for the first half of 2022, Dozy Mmobuosi, Chief Executive Officer, stated: “We are again pleased to announce a strong operating performance for the second quarter of 2022, building on a strong first quarter and continuing to deliver growth of our Agri-Fintech business. At the end of the second quarter, our Nwassa platform accounted for almost 50% of total revenue, with more than $5 billion in gross transactions processed through our payments system. We are on track to launch the Tingo SuperApp in the second half of this year, which should provide even greater commercial opportunities and financial empowerment for our existing customers, as well as further incentive to other farmers and potential new customers to become subscribers and utilize our marketplace and fintech platforms. We also look forward to completing our merger with MICT, with the aim of accelerating our expansion throughout Africa, and into Asia and other key new markets”
Dakshesh Patel, the Company’s Chief Financial Officer, added: “Our financial results evidence the consistent growth of our Agri-Fintech services and the strong level of trust and loyalty that Tingo continues to build with our customer base. Importantly, we have seen a significant increase in transaction numbers without compromise of our pricing, confirming the value that the Nwassa Agri-Fintech platform delivers to our customers. We are very pleased to see a marked month on month increase in the level of gross transactions processed and the continuing trend indicates we should achieve further growth in the second half of the year”
About Tingo
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.
Contacts
Corporate and Media Contacts:
Tingo, Inc.
(646) 847-0144
Rory Bowen
Chief of Staff – Tingo Inc
rory.bowen@tingoinc.com
