Computer Warehouse Group (CWG) Plc and Chams Holding Company Plc have both reported significant profits for the first time in 13 years. This increase in earnings is largely attributed to Nigerian banks upgrading their IT infrastructure and telecom companies expanding their SIM card acquisitions.
The latest financial reports for the full-year 2024 show a remarkable 395% rise in combined after-tax profit, reaching ₦4.88 billion compared to ₦983.7 million in 2023.
Chams experienced a notable surge in revenue from its subsidiary Card Centre, almost tripling to ₦6.48 billion. This growth, along with a 37.7% increase in print solutions and access sales, contributed to the company’s overall profit boost.
Chams has diversified clients in both the government and financial sectors. Its major banking clients include Keystone, First Bank, and Sterling, among others. On the government side, it serves entities like the Independent National Electoral Commission and the Nigerian Customs Service.
CWG, a provider of managed services and IT infrastructure support, saw its earnings soar by 524% to ₦3.59 billion. This surge was fueled by Nigerian banks upgrading their core banking systems, leading to increased demand for software and IT support.
The company’s 20-year partnership with Infosys significantly boosted its software revenue, reaching ₦19.1 billion. CWG supplies Finacle, Infosys’ core banking application, to its clients. The company’s revenue also benefited from providing core banking applications and support services, witnessing a 106% increase.
In response to the evolving market trends, CWG is expanding its product portfolio, while Chams plans to scale up its Card Centre production to meet the rising demand from banks.
Both CWG and Chams face competition from global IT firms offering comprehensive solutions. To stay competitive, local providers must adapt to emerging technologies such as cloud computing, artificial intelligence, and cybersecurity, crucial for banks’ digital transformation efforts. Adaptation is key for these companies to remain relevant and avoid becoming obsolete in the rapidly evolving IT landscape.