On November 15, 2023, Tingo Group Inc (TIO, Financial) released its 8-K filing, reporting its financial results for the third quarter ended September 30, 2023. The company faced a challenging quarter with net revenues and gross profit experiencing significant declines due to the devaluation of Nigeria's currency and a short seller report that affected customer confidence.
Financial Performance Overview
The net revenues for the three months ended September 30, 2023, saw a decrease of $391.0 million compared to the previous quarter. This decline was largely attributed to the devaluation of Nigeria's currency, which resulted in a 39.43% decrease in U.S. Dollar reported revenues for Tingo Mobile and Tingo Foods. Additionally, the gross profit for the same period decreased by $208.1 million, impacted by the currency exchange rate changes and the temporary loss of customer confidence.
Operational Milestones and Management Commentary
Despite the setbacks, Tingo Group Inc (TIO, Financial) is optimistic about its recovery in the fourth quarter.
“After a challenging third quarter, where we suffered from the impact of several externally generated factors, I am very pleased with the strong recovery we are seeing in the fourth quarter, which I am confident will see us return to growth,”stated Dozy Mmobuosi, Co-Chief Executive Officer of Tingo Group.
The company is deepening its relationship with the Agricultural Farmers Association of Nigeria (AFAN) and is set to lease and distribute 6 million new smartphones from December, which is expected to bolster Tingo Mobile's performance. Tingo Foods is also witnessing a strong recovery with the commencement of the wet-season harvest and adjustments in selling prices to counter food price inflation.
Co-Chief Executive Officer Kenneth Denos added,
“We are proud of our progress and achievements for the third quarter and the nine months ended September 30, 2023. Despite some major headwinds...we were able to regroup and continue on the path to growing and developing our businesses.”
Financial Statements Highlights
The unaudited condensed consolidated balance sheets show that total assets increased to $1.929 billion as of September 30, 2023, from $1.682 billion at the end of 2022. The company's total liabilities and stockholders' equity also rose to match the assets at $1.929 billion.
The unaudited condensed consolidated statements of operations reveal a net profit of $293.993 million for the nine months ended September 30, 2023, a significant turnaround from the net loss of $30.694 million in the same period of the previous year. Basic earnings per share for the nine months were $1.69, and diluted earnings per share were $0.57.
Looking Forward
Tingo Group Inc (TIO, Financial) is actively working on international expansion, with a pilot program launched in Malawi and a Memorandum of Understanding signed with the Government of Pakistan for a nationwide rollout. The company is also in the process of obtaining foreign currency exchange approval for its first dividend payment of $20 million.
Investors and analysts interested in further details can access the conference call presentation and investor relations materials on the company's website. Tingo Group Inc (TIO, Financial) remains committed to overcoming the challenges faced in Q3 and is poised for growth in the coming quarters.
For a more detailed analysis and information on Tingo Group Inc (TIO, Financial)'s financial results, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Tingo Group Inc for further details.
