Company News

Pegasus Technologies’ 2024 net profit rises 18% to UGX6.7 billion, driven by revenue growth and increased efficiency

Ronald Azairwe, Managing Director of Pegasus Technologies Limited, has steered the company through a period of strong revenue growth and enhanced profitability in 2024, reinforcing Pegasus’ leadership in Uganda’s digital payments industry.

Pegasus Technologies Limited, one of Uganda’s top digital payment solutions providers, has reported impressive financial results for 2024, marked by strong revenue growth and a significant uplift in net profit after tax.

According to the company’s newly released financials, revenue rose by 14.5% to UGX 22.39 billion in 2024, up from UGX 19.55 billion in 2023. This growth was fueled by increased digital transaction volumes through the PegPay platform, expanded partnerships with banks and telecoms, and a surge in demand for seamless, secure digital payment services.

Net profit after tax rose from UGX 5.64 billion in 2023 to UGX 6.67 billion in 2024, representing an 18% increase, driven by rising revenues and significant cost efficiencies.

Pegasus’ financial success was underpinned by an aggressive focus on expense management. Administrative and operational costs were slashed by over 63%, dropping from UGX 1.37 billion to UGX 503 million. Other cost areas, including selling, distribution, and marketing expenses, also saw significant reductions, allowing the company to protect margins despite intensified competition in the payments space.

Employment expenses were reduced from UGX 3.35 billion to UGX 2.40 billion, enhancing overall operational efficiency. Meanwhile, finance costs remained modest at UGX 115 million, reflecting disciplined debt management despite consistent borrowing levels.

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Balance Sheet Strength and Liquidity Gains

Pegasus closed 2024 with UGX 29.99 billion in cash and cash equivalents, improving liquidity and ensuring readiness to fund future growth initiatives. Total assets expanded to UGX 61.14 billion, while total liabilities declined, indicating enhanced financial health.

Most notably, retained earnings surged more than tenfold to UGX 8.49 billion, a major boost from UGX 786 million in 2023. This massive jump in accumulated profits propelled total shareholders’ equity to UGX 8.49 billion, strengthening the company’s balance sheet considerably.