Q1 2025 Lesaka Technologies Inc Earnings Call Transcript
Key Points
- Lesaka Technologies Inc (LSAK) achieved the midpoint of its guidance for both revenue and EBITDA, with revenue reaching 2.6 billion Rand and EBITDA at 168 million Rand.
- The company reported a significant improvement in fundamental earnings, moving from a loss of 5 million Rand in Q1 2024 to a profit of 43 million Rand in Q1 2025.
- Net revenue for Q1 2025 was 1.056 billion Rand, representing an organic growth of 16% from Q1 2024.
- The consumer segment showed strong performance with a 30% year-on-year revenue increase to 378 million Rand and a 99% increase in segment adjusted EBITDA.
- Lesaka Technologies Inc (LSAK) is well-positioned to benefit from the digitization of economies in Africa, with a focus on providing integrated multiproduct offerings to both consumers and businesses.
- Currency fluctuations between the US dollar and the South African Rand significantly affect the company's results.
- The merchant division experienced a slower organic growth rate compared to previous expectations, with a 9% year-on-year growth in net revenue.
- Increased competition in the South African merchant market has impacted the company's performance, with banks and other fintechs becoming more active.
- Group costs increased to 53 million Rand for the quarter due to new hires and incremental operational costs, impacting overall profitability.
- The company experienced a significant working capital outflow related to the payment of annual staff bonuses and the timing of payables settlements.
Hello, everyone and welcome to the Lusaka Technologies webcast and conference call for the first quarter of fiscal 2025. As a reminder, the webcast is being recorded and the presentation can be accessed through the webcast link as well as dialing into the Zoom conference call. Dial in numbers provided management will address any questions you may have at the end of the presentation for those joining us via the webcast. You can ask your questions live by raising your hand in Zoom for those joining via the Zoom teleconference line. You cannot ask your questions live. The webcast link Zoom conference call dial in numbers as well as our press release and supplementary investor presentation are available on our investor relations website at Ir dot Liak tech dotcom. Additionally, Lesaca filed its form 10-Q after the US market closed yesterday, which is also available on our investor relations website. As a reminder during this call, we will be making forward-looking statements. And I ask you to look at the cautionary language contained in our form 10-Q regarding the risks and uncertainties associated with forward
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