Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released
results for the second quarter ended December 31, 2023 (“Q2 2024”).
Performance Highlights for Q2 2024:
-
Revenue of $143.9 million (ZAR 2.7 billion)1 in Q2 2024, compared
to $136.1 million (ZAR 2.4 billion)1 for the second quarter ended
December 31, 2022 (“Q2 2023”). In South African Rand (“ZAR”),
revenue grew 13%.
-
Operating income of $2.3 million (ZAR 42.5 million) for the
quarter, compares to an operating loss of $2.2 million (ZAR 38.4
million) in Q2 2023, driven by successful execution against our
strategy and growth in the Consumer and Merchant Divisions.
Operating income for Q2 2024, includes a $1.0 million (ZAR 17.6
million) non-cash gain related to the release of a foreign currency
translation reserve upon liquidation of a dormant
subsidiary.
-
Net loss continued to narrow, at $2.7 million (ZAR 50.8 million)1.
This compares to a net loss of $6.6 million (ZAR 116.5 million)1 in
Q2 2023 and represents a 56% improvement in ZAR.
-
Group Adjusted EBITDA, of $9.6 million (ZAR 180.5 million)1
exceeded the upper end of Q2 2024 guidance, representing an
improvement of 38% in ZAR compared to the Q2 2023 Group Adjusted
EBITDA of $7.4 million (ZAR 130.4 million)1. See Attachment B for a
reconciliation of this non-GAAP measure.
-
The Merchant Division reported revenue $127.9 million (R2.4
billion), an increase of 13% in ZAR, compared to $120.6 million
(ZAR 2.1 billion). Segment Adjusted EBITDA increased to $8.7
million (ZAR 162.9 million) for the quarter, a 2% increase in ZAR
compared to Q2 2023. Year-on-year comparatives for revenue and
Segment Adjusted EBITDA are impacted by a very strong comparative
quarter in Q2 2023, primarily due to performance in our NUETS
business, which is influenced by client capex cycles.
-
The Consumer Division reported Segment Adjusted EBITDA of $2.9
million (ZAR 55.2 million)1 in Q2 2024, a 445% increase in ZAR,
compared to $0.6 million (ZAR 10.1 million) in Q2 2023. Strategic
initiatives to grow the Consumer Division are yielding positive
results with revenue increasing 16% year-on-year in ZAR to $16.7
million (ZAR 313 million), off a reduced cost base.
-
The Net debt to Group Adjusted EBITDA2 ratio improved to 2.7 times,
compared to 3.6 times in Q2 2023, driven by debt reduction and
growth in Group Adjusted EBITDA.
-
Guidance for fiscal 2024 re-affirmed.
Outgoing Lesaka Group CEO Chris
Meyer said, “I am pleased to announce that we have once
again achieved excellent results this quarter. Our Consumer team's
hard work over the past two years is paying off, resulting in
substantial customer and profit growth. Our Merchant division has
also performed well, and our anticipated acquisition of Touchsides
has given us new technology and expertise in the tavern vertical,
allowing us to continue innovating in this competitive market.
The progress Lesaka has made in the last two
years has been remarkable, and I am proud of our achievements. I am
confident that the exceptional leadership team and motivated
colleagues will continue Lesaka's journey towards becoming the
leading fintech platform in Southern Africa. The appointment of Ali
Mazanderani as Executive Chairman is very exciting for Lesaka. He
is an exceptional fintech entrepreneur and leader, with deep
experience and a proven track-record in the fintech sector and in
emerging markets, including South Africa.”
(1) Average exchange
rates applicable for the quarter: ZAR 18.71 to $1 for Q2 2024, ZAR
18.71 to $1 for Q1 2024, ZAR 17.52 to $1 for Q2 2023. The ZAR
weakened 6.8% against the U.S. dollar during Q2 2024 when compared
to Q2 2023 and 0.01% when compared to the prior sequential quarter
(Q1 2024).(2) Non-GAAP measure. Net Debt to
EBITDA ratio is calculated as net debt at specific
date divided by Annualized Group Adjusted EBITDA.
Summary Financial Metrics
Three months ended
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Three months ended |
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Dec 31,2023 |
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Dec 31,2022 |
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Sep 30,2023 |
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Q2 ’24 vsQ2 ’23 |
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Q2 ’24 vsQ1 ’24 |
|
Q2 ’24 vsQ2 ’23 |
|
Q2 ’24 vsQ1 ’24 |
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
|
% change in USD |
|
% change in ZAR |
Revenue |
143,893 |
|
|
136,068 |
|
|
136,089 |
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6% |
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6% |
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13% |
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6% |
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GAAP operating
income (loss) |
2,273 |
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|
(2,192) |
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|
228 |
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nm |
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897% |
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nm |
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897% |
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Net loss
attributable to Lesaka |
(2,707) |
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|
(6,649) |
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|
(5,651) |
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|
(59%) |
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|
(52%) |
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|
(57%) |
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(52%) |
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GAAP loss per
share ($) |
(0.04) |
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|
(0.11) |
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|
(0.09) |
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|
(60%) |
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|
(52%) |
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(57%) |
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(52%) |
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|
Group Adjusted
EBITDA(1) |
9,630 |
|
|
7,442 |
|
|
8,719 |
|
|
29% |
|
|
10% |
|
|
38% |
|
|
10% |
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Fundamental
earnings (loss) per share ($)(1) |
0.01 |
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(0.01) |
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- |
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nm |
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Nm |
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nm |
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nm |
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Fully-diluted
weighted average shares (‘000’s) |
63,805 |
|
|
62,763 |
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|
63,805 |
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|
2% |
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|
- |
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n/a |
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n/a |
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Average period USD
/ ZAR exchange rate |
18.71 |
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|
17.52 |
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|
18.71 |
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7% |
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0% |
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n/a |
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n/a |
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Six months ended
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Six months ended |
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F2024 vsF2023 |
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F2024 vsF2023 |
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Dec 31,2023 |
|
Dec 31,2022 |
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|
(All figures in
USD ‘000s except per share data) |
USD ‘000’s (except per share
data) |
% changein USD |
|
% changein ZAR |
Revenue |
279,982 |
|
|
260,854 |
|
|
7% |
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|
16% |
|
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|
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|
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GAAP operating
income (loss) |
2,501 |
|
|
(6,863) |
|
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nm |
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nm |
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Net loss
attributable to Lesaka |
(8,358) |
|
|
(17,345) |
|
|
(52%) |
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|
(48%) |
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GAAP loss per
share ($) |
(0.13) |
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|
(0.28) |
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(52%) |
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(48%) |
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Group Adjusted
EBITDA(1) |
18,349 |
|
|
11,641 |
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58% |
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|
71% |
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Fundamental
earnings (loss) per share ($)(1) |
0.01 |
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|
(0.09) |
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nm |
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nm |
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Fully-diluted
weighted average shares (‘000’s) |
63,134 |
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|
62,498 |
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|
1% |
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|
n/a |
|
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Average period USD
/ ZAR exchange rate |
18.71 |
|
|
17.25 |
|
|
8% |
|
|
n/a |
|
|
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|
(1) Group Adjusted EBITDA, fundamental earnings
(loss) and fundamental earnings (loss) per share are non-GAAP
measures and are described below under “Use of Non-GAAP
Measures—Group Adjusted EBITDA, and —Fundamental net earnings
(loss) and fundamental earnings (loss) per share.” See Attachment B
for a reconciliation of GAAP net loss attributable to Lesaka to
Group Adjusted EBITDA, and GAAP net loss to fundamental net
earnings (loss) and earnings (loss) per share.
Factors Impacting Comparability of Q2
2024 and Q2 2023 Results
- Higher revenue:
Our revenues increased 13% in ZAR, primarily due to an increase in
low margin prepaid airtime sales and other value-added services, as
well as higher transaction, insurance and lending revenues, which
was partially offset by lower hardware sales revenue in our POS
hardware distribution business given the lumpy nature of bulk
sales;
- Operating income
generated: Operating profitability was achieved following
years of operating losses as a result of the various cost reduction
initiatives in Consumer implemented in prior periods as well as the
contribution from Connect;
- Higher net interest
charge: The net interest charge increased to $4.4 million
(ZAR 81.2 million) from $4.0 million (ZAR 70.0 million) primarily
due to higher interest rates; and
- Foreign exchange
movements: The U.S. dollar was 7% stronger against the ZAR
during Q2 2024 compared to the prior period, which adversely
impacted our U.S. dollar reported results.
Results of Operations by Segment and
Liquidity
Our chief operating decision maker is our Group
Chief Executive Officer and he evaluates segment performance based
on segment earnings before interest, tax, depreciation and
amortization (“EBITDA”), adjusted for items mentioned in the next
sentence (“Segment Adjusted EBITDA”). We do not allocate once-off
items, stock-based compensation charges, certain lease charges,
depreciation and amortization, impairment of goodwill or other
intangible assets, other items (including gains or losses on
disposal of investments, fair value adjustments to equity
securities, fair value adjustments to currency options), interest
income, interest expense, income tax expense or loss from
equity-accounted investments to our reportable segments. See
Attachment B for a reconciliation of GAAP net income before tax to
Group Adjusted EBITDA.
Merchant
Merchant Division revenue was $127.9 million in
Q2 2024, up 13% compared to Q2 2023 in ZAR. Segment revenue
increased due to the increase in low margin prepaid airtime sales
and other value-added services, which was partially offset by lower
hardware sales revenue given the lumpy nature of bulk sales as well
as lower revenue from certain valued-added services transactions
(such as international money transfers). In ZAR, the increase in
Segment Adjusted EBITDA is primarily due to the higher sales
activity, which was partially offset by lower hardware sales.
Connect records a significant proportion of its airtime sales in
revenue and cost of sales, while only earning a relatively small
margin. This significantly depresses the Segment Adjusted EBITDA
margins shown by the business. Our Segment Adjusted EBITDA margin
(calculated as Segment Adjusted EBITDA divided by revenue) for Q2
2024 and Q2 2023 was 6.8% and 7.6%, respectively.
Consumer
Consumer Division revenue was $16.7 million in
Q2 2024, 16% higher in ZAR compared to Q2 2023. Segment revenue
increased primarily due to more transaction fees generated from the
higher EPE (“EasyPay Everywhere”) account holders base, higher
insurance revenues, and an increase in lending revenue as a result
of an increase in loan originations. This increase in revenue,
together with the cost reduction initiatives initiated in fiscal
2022 and through fiscal 2023, have translated into a turnaround in
the Consumer Division and the realization of sustained positive
Segment Adjusted EBITDA. Our Segment Adjusted EBITDA margin for Q2
2024 and 2023 was 17.6% and 3.7%, respectively.
Group costs
Our group costs primarily include employee
related costs in relation to employees specifically hired for group
roles and costs related directly to managing the US-listed entity;
expenditures related to compliance with the Sarbanes-Oxley Act of
2002; non-employee directors’ fees; legal fees; group and US-listed
related audit fees; and directors’ and officers’ insurance
premiums. Our group costs for fiscal 2024 decreased compared with
the prior period due to lower external audit, legal and consulting
fees and lower provision for executive bonuses, which was partially
offset by higher employee costs.
Cash flow and liquidity
As of December 31, 2023, our cash and cash
equivalents were $44.3 million and comprised of U.S.
dollar-denominated balances of $4.5 million, ZAR-denominated
balances of ZAR 688.5 million ($37.6 million), and other currency
deposits, primarily Botswana pula, of $2.2 million, all amounts
translated at exchange rates applicable as of December 31, 2023.
The increase in our unrestricted cash balances from June 30, 2023,
was primarily due to a positive contribution from our Merchant and
Consumer operations and utilization of our borrowings facilities to
fund certain components of our operations, which was partially
offset by the utilization of cash reserves to fund certain
scheduled and other repayments of our borrowings, purchase ATMs and
vaults, and to make an investment in working capital.
Outlook for the Third Quarter 2024 (“Q3
2024”) and Full Fiscal Year 2024 (“FY 2024”)
While we report our financial results in USD, we measure our
operating performance in ZAR, and as such we provide our guidance
accordingly.
For Q3 2024, the quarter ending March 31, 2024,
we expect:
-
Revenue between ZAR 2.7 billion and ZAR 2.8 billion.
-
Group Adjusted EBITDA between ZAR 170 million and ZAR 190
million.
We re-affirm our outlook for FY 2024, the year
ending June 30, 2024. We expect:
-
Revenue between ZAR 10.7 billion and ZAR 11.7 billion.
-
Group Adjusted EBITDA between ZAR 680 million and ZAR 740
million.
Our outlook provided does not include the impact
of the acquisition of Touchsides or any mergers and acquisitions
that we conclude.
Management has provided its outlook regarding
Group Adjusted EBITDA, which is a non-GAAP financial measure and
excludes certain charges. Management has not reconciled this
non-GAAP financial measure to the corresponding GAAP financial
measure because guidance for the various reconciling items is not
provided. Management is unable to provide guidance for these
reconciling items because they cannot determine their probable
significance, as certain items are outside of the company's control
and cannot be reasonably predicted since these items could vary
significantly from period to period. Accordingly, reconciliations
to the corresponding GAAP financial measure is not available
without unreasonable effort.
Earnings Presentation for Q2 2024
Results
Our earnings presentation for Q2 2024 will be posted to the
Investor Relations page of our website prior to our earnings
call.
Webcast and Conference Call
Lesaka will host a webcast and conference call
to review results on February 7, 2024, at 8:00 a.m. Eastern Time
which is 3:00 p.m. South Africa Standard Time (“SAST”). A replay of
the results presentation webcast will be available on the Lesaka
investor relations website following the conclusion of the live
event.
Webcast Details
- Link to access the results webcast: https://bit.ly/3NNYu2I
- Webcast ID: 986 4107 6448
Participants using the webcast will be able to ask questions by
raising their hand and then asking the question “live.”
Conference Call Dial-in:
- US Toll-Free: +1
346 248 7799
- South Africa
Toll-Free: + 27 21 426 8190
Participants using the conference call dial-in will be unable to
ask questions.
Use of Non-GAAP Measures
U.S. securities laws require that when we
publish any non-GAAP measures, we disclose the reason for using
these non-GAAP measures and provide reconciliations to the most
directly comparable GAAP measures. The presentation of Group
Adjusted EBITDA, Group Adjusted EBITDA margin, fundamental net
(loss) income, fundamental (loss) earnings per share, and headline
(loss) earnings per share are non-GAAP measures.
Non-GAAP Measures
Group Adjusted EBITDA is net loss before
interest, taxes, depreciation and amortization, adjusted for
non-operational transactions (including loss on disposal of
equity-accounted investments), loss from equity-accounted
investments, stock-based compensation charges, lease adjustments
and once-off items. Lease adjustments reflect lease charges and
once-off items represents non-recurring expense items, including
costs related to acquisitions and transactions consummated or
ultimately not pursued. Group Adjusted EBITDA margin is Group
Adjusted EBITDA divided by revenue.
Fundamental net earnings (loss) and fundamental earnings
(loss) per share
Fundamental net earnings (loss) and earnings
(loss) per share is GAAP net loss and loss per share adjusted for
the amortization of acquisition-related intangible assets (net of
deferred taxes), stock-based compensation charges, and unusual
non-recurring items, including costs related to acquisitions and
transactions consummated or ultimately not pursued.
Fundamental net earnings (loss) and earnings
(loss) per share for fiscal 2024 also includes an impairment loss
related to an equity-accounted investment, unrealized currency loss
related to our non-core business which we are in the process of
winding down and a reversal of allowance for doubtful loan
receivable. Fundamental net loss and loss per share for fiscal 2023
also includes a net gain on disposal of equity-accounted
investments, unrealized currency loss related to our non-core
business which we are in the process of winding down and an
impairment loss related to an equity-accounted investment.
Management believes that the Group Adjusted
EBITDA, fundamental net earnings (loss) and fundamental earnings
(loss) per share metrics enhance its own evaluation, as well as an
investor’s understanding, of our financial performance. Attachment
B presents the reconciliation between GAAP net loss attributable to
Lesaka and these non-GAAP measures.
Headline (loss) earnings per share
(“H(L)EPS”)
The inclusion of H(L)EPS in this press release
is a requirement of our listing on the JSE. H(L)EPS basic and
diluted is calculated using net (loss) income which has been
determined based on GAAP. Accordingly, this may differ to the
headline (loss) earnings per share calculation of other companies
listed on the JSE as these companies may report their financial
results under a different financial reporting framework, including
but not limited to, International Financial Reporting
Standards.
H(L)EPS basic and diluted is calculated as GAAP
net (loss) income adjusted for the impairment losses related to our
equity-accounted investments and (profit) loss on sale of property,
plant and equipment. Attachment C presents the reconciliation
between our net (loss) income used to calculate (loss) earnings per
share basic and diluted and H(L)EPS basic and diluted and the
calculation of the denominator for headline diluted (loss) earnings
per share.
About Lesaka (www.lesakatech.com)
Lesaka Technologies, (Lesaka™) is a South
African Fintech company that utilizes its proprietary banking and
payment technologies to deliver superior financial services
solutions to merchants (B2B) and consumers (B2C) in Southern
Africa. Lesaka’s mission is to drive true financial inclusion for
both merchant and consumer markets through offering affordable
financial services to previously underserved sectors of the
economy. Lesaka offers cash management solutions, growth capital,
card acquiring, bill payment technologies and value-added services
to formal and informal retail merchants as well as banking,
lending, and insurance solutions to consumers across Southern
Africa. The Lesaka journey originally began as “Net1” in 1997 and
later rebranded to Lesaka (2022), with the acquisition of Connect.
As Lesaka, the business continues to grow its systems and
capabilities to deliver meaningful fintech-enabled, innovative
solutions for South Africa’s merchant and consumer markets.
Lesaka has a primary listing on NASDAQ
(NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock
Exchange (JSE: LSK). Visit www.lesakatech.com for additional
information about Lesaka Technologies (Lesaka ™).
Forward-Looking Statements
This press release contains certain statements
that may be considered forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and such statements are subject to the safe harbor created by those
sections and the Private Securities Litigation Reform Act of 1995,
as amended. Such statements may be identified by their use of terms
or phrases such as “expects,” “estimates,” “projects,” “believes,”
“anticipates,” “plans,” “could,” “would,” “may,” “will,” “intends,”
“outlook,” “focus,” “seek,” “potential,” “mission,” “continue,”
“goal,” “target,” “objective,” derivations thereof, and similar
terms and phrases. Forward-looking statements are based upon the
current beliefs and expectations of our management and are
inherently subject to risks and uncertainties, some of which cannot
be predicted or quantified, which could cause future events and
actual results to differ materially from those set forth in,
contemplated by, or underlying the forward-looking statements. In
this press release, statements relating to future financial results
and future financing and business opportunities are forward-looking
statements. Additional information concerning factors that could
cause actual events or results to differ materially from those in
any forward-looking statement is contained in our Form 10-K for the
fiscal year ended June 30, 2023, as filed with the SEC, as well as
other documents we have filed or will file with the SEC. We assume
no obligation to update the information in this press release, to
revise any forward-looking statements or to update the reasons
actual results could differ materially from those anticipated in
forward-looking statements.
Investor Relations Contact:Phillipe
WelthagenEmail: phillipe.welthagen@lesakatech.comMobile: +27 84 512
5393
FNK IR:Rob Fink / Matt Chesler, CFAEmail:
lsak@fnkir.com
Media Relations Contact:Janine Bester
GertzenEmail: janine@thenielsennetwork.com
LESAKA TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of
Operations |
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Unaudited |
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Unaudited |
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Three months ended |
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Six months ended |
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December 31, |
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December 31, |
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2023 |
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2022 |
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2023 |
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2022 |
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(In thousands) |
|
(In thousands) |
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REVENUE |
|
$ |
143,893 |
|
|
$ |
136,068 |
|
|
$ |
279,982 |
|
|
$ |
260,854 |
|
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EXPENSE |
|
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|
Cost of goods
sold, IT processing, servicing and support |
|
|
114,266 |
|
|
|
108,824 |
|
|
|
221,756 |
|
|
|
209,352 |
|
|
Selling, general
and administration |
|
|
21,541 |
|
|
|
23,517 |
|
|
|
44,056 |
|
|
|
46,448 |
|
|
Depreciation and
amortization |
|
|
5,813 |
|
|
|
5,919 |
|
|
|
11,669 |
|
|
|
11,917 |
|
|
|
|
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|
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|
|
|
|
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|
|
|
|
|
|
OPERATING INCOME
(LOSS) |
|
|
2,273 |
|
|
|
(2,192 |
) |
|
|
2,501 |
|
|
|
(6,863 |
) |
|
|
|
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|
REVERSAL OF
ALLOWANCE FOR DOUBTFUL EMI LOAN RECEIVABLE |
|
|
- |
|
|
|
- |
|
|
|
250 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
(LOSS) GAIN ON
DISPOSAL OF EQUITY-ACCOUNTED INVESTMENT |
|
|
- |
|
|
|
(112 |
) |
|
|
- |
|
|
|
136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME |
|
|
485 |
|
|
|
389 |
|
|
|
934 |
|
|
|
800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
4,822 |
|
|
|
4,388 |
|
|
|
9,731 |
|
|
|
8,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAX EXPENSE |
|
|
(2,064 |
) |
|
|
(6,303 |
) |
|
|
(6,046 |
) |
|
|
(14,351 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX
EXPENSE |
|
|
686 |
|
|
|
364 |
|
|
|
950 |
|
|
|
395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS BEFORE
EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
(2,750 |
) |
|
|
(6,667 |
) |
|
|
(6,996 |
) |
|
|
(14,746 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
FROM EQUITY-ACCOUNTED INVESTMENTS |
|
|
43 |
|
|
|
18 |
|
|
|
(1,362 |
) |
|
|
(2,599 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO LESAKA |
|
$ |
(2,707 |
) |
|
$ |
(6,649 |
) |
|
$ |
(8,358 |
) |
|
$ |
(17,345 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share, in United States dollars: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss
attributable to Lesaka shareholders |
|
$ |
(0.04 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.28 |
) |
Diluted loss
attributable to Lesaka shareholders |
|
$ |
(0.04 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LESAKA TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Balance
Sheets |
|
|
|
|
|
|
Unaudited |
|
(A) |
|
|
|
|
|
|
December 31, |
|
June 30, |
|
|
|
|
|
|
2023 |
|
|
2023 |
|
|
|
|
|
|
|
(In thousands, except share data) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
CURRENT
ASSETS |
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
44,316 |
|
|
$ |
35,499 |
|
|
Restricted
cash |
|
23,522 |
|
|
|
23,133 |
|
|
Accounts
receivable, net of allowance of - December: $422; June: $509 and
other receivables |
|
41,114 |
|
|
|
25,665 |
|
|
Finance loans
receivable, net of allowance of - December: $4,742; June:
$3,582 |
|
39,056 |
|
|
|
36,744 |
|
|
Inventory |
|
27,622 |
|
|
|
27,337 |
|
|
|
Total current
assets before settlement assets |
|
175,630 |
|
|
|
148,378 |
|
|
|
|
Settlement
assets |
|
26,974 |
|
|
|
15,258 |
|
|
|
|
|
Total current assets |
|
202,604 |
|
|
|
163,636 |
|
PROPERTY, PLANT
AND EQUIPMENT, net of accumulated depreciation of - December:
$39,667; June: $36,563 |
|
28,340 |
|
|
|
27,447 |
|
OPERATING LEASE
RIGHT-OF-USE |
|
5,649 |
|
|
|
4,731 |
|
EQUITY-ACCOUNTED
INVESTMENTS |
|
161 |
|
|
|
3,171 |
|
GOODWILL |
|
137,666 |
|
|
|
133,743 |
|
INTANGIBLE ASSETS,
net of accumulated amortization of - December: $38,476; June:
$30,173 |
|
117,953 |
|
|
|
121,597 |
|
DEFERRED INCOME
TAXES |
|
10,256 |
|
|
|
10,315 |
|
OTHER LONG-TERM
ASSETS, including reinsurance assets |
|
77,963 |
|
|
|
77,594 |
|
TOTAL
ASSETS |
|
580,592 |
|
|
|
542,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
Short-term credit
facilities for ATM funding |
|
23,407 |
|
|
|
23,021 |
|
|
Short-term credit
facilities |
|
9,291 |
|
|
|
9,025 |
|
|
Accounts
payable |
|
18,884 |
|
|
|
12,380 |
|
|
Other
payables |
|
45,115 |
|
|
|
36,297 |
|
|
Operating lease
liability - current |
|
1,691 |
|
|
|
1,747 |
|
|
Current portion of
long-term borrowings |
|
3,429 |
|
|
|
3,663 |
|
|
Income taxes
payable |
|
670 |
|
|
|
1,005 |
|
|
|
Total current
liabilities before settlement obligations |
|
102,487 |
|
|
|
87,138 |
|
|
|
|
Settlement
obligations |
|
26,090 |
|
|
|
14,774 |
|
|
|
|
|
Total current
liabilities |
|
128,577 |
|
|
|
101,912 |
|
DEFERRED INCOME
TAXES |
|
45,929 |
|
|
|
46,840 |
|
OPERATING LEASE
LIABILITY - LONG TERM |
|
4,108 |
|
|
|
3,138 |
|
LONG-TERM
BORROWINGS |
|
139,337 |
|
|
|
129,455 |
|
OTHER LONG-TERM
LIABILITIES, including insurance policy liabilities |
|
2,489 |
|
|
|
1,982 |
|
TOTAL
LIABILITIES |
|
320,440 |
|
|
|
283,327 |
|
REDEEMABLE COMMON
STOCK |
|
79,429 |
|
|
|
79,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
LESAKA
EQUITY: |
|
|
|
|
|
COMMON STOCK |
|
|
|
|
|
|
Authorized:
200,000,000 with $0.001 par value; |
|
|
|
|
|
|
Issued and
outstanding shares, net of treasury: December: 64,443,523; June:
63,640,246 |
|
83 |
|
|
|
83 |
|
PREFERRED
STOCK |
|
|
|
|
|
|
Authorized shares:
50,000,000 with $0.001 par value; |
|
|
|
|
|
|
Issued and
outstanding shares, net of treasury: December: -; June: - |
|
- |
|
|
|
- |
|
ADDITIONAL
PAID-IN-CAPITAL |
|
339,149 |
|
|
|
335,696 |
|
TREASURY SHARES,
AT COST: December: 25,295,261; June: 25,244,286 |
|
(288,436 |
) |
|
|
(288,238 |
) |
ACCUMULATED OTHER
COMPREHENSIVE LOSS |
|
(189,378 |
) |
|
|
(195,726 |
) |
RETAINED
EARNINGS |
|
319,305 |
|
|
|
327,663 |
|
TOTAL LESAKA
EQUITY |
|
180,723 |
|
|
|
179,478 |
|
NON-CONTROLLING
INTEREST |
|
- |
|
|
|
- |
|
TOTAL
EQUITY |
|
180,723 |
|
|
|
179,478 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS’
EQUITY |
$ |
580,592 |
|
|
$ |
542,234 |
|
|
|
|
|
|
|
|
|
(A) Derived from audited consolidated financial statements.
LESAKA TECHNOLOGIES, INC. |
Unaudited Condensed Consolidated Statements of Cash
Flows |
|
|
|
Unaudited |
|
Unaudited |
|
|
|
Three months ended |
|
Six months ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
(In thousands) |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(2,707 |
) |
|
$ |
(6,649 |
) |
|
$ |
(8,358 |
) |
|
$ |
(17,345 |
) |
|
Depreciation and
amortization |
|
5,813 |
|
|
|
5,919 |
|
|
|
11,669 |
|
|
|
11,917 |
|
|
Movement in
allowance for doubtful accounts receivable and finance loans
receivable |
|
1,164 |
|
|
|
1,480 |
|
|
|
2,689 |
|
|
|
2,529 |
|
|
Movement in
interest payable |
|
(1,573 |
) |
|
|
1,436 |
|
|
|
191 |
|
|
|
1,462 |
|
|
Fair value
adjustment related to financial liabilities |
|
(836 |
) |
|
|
81 |
|
|
|
(870 |
) |
|
|
144 |
|
|
Gain on disposal
of equity-accounted investments |
|
- |
|
|
|
112 |
|
|
|
- |
|
|
|
(136 |
) |
|
(Gain) Loss from
equity-accounted investments |
|
(43 |
) |
|
|
(18 |
) |
|
|
1,362 |
|
|
|
2,599 |
|
|
Reversal of
allowance for doubtful loans receivable |
|
- |
|
|
|
- |
|
|
|
(250 |
) |
|
|
- |
|
|
Profit on disposal
of property, plant and equipment |
|
(163 |
) |
|
|
(113 |
) |
|
|
(199 |
) |
|
|
(321 |
) |
|
Facility fee
amortized |
|
89 |
|
|
|
196 |
|
|
|
316 |
|
|
|
445 |
|
|
Stock-based
compensation charge |
|
1,804 |
|
|
|
2,849 |
|
|
|
3,563 |
|
|
|
4,311 |
|
|
Dividends received
from equity accounted investments |
|
54 |
|
|
|
- |
|
|
|
54 |
|
|
|
21 |
|
|
Increase in
accounts receivable and other receivables |
|
(13,157 |
) |
|
|
1,962 |
|
|
|
(15,502 |
) |
|
|
(981 |
) |
|
Increase in
finance loans receivable |
|
(2,889 |
) |
|
|
(5,230 |
) |
|
|
(3,377 |
) |
|
|
(8,811 |
) |
|
Increase in
inventory |
|
985 |
|
|
|
(1,193 |
) |
|
|
506 |
|
|
|
(1,472 |
) |
|
Increase
(Decrease) in accounts payable and other payables |
|
13,728 |
|
|
|
4,829 |
|
|
|
14,103 |
|
|
|
4,391 |
|
|
Increase in taxes
payable |
|
(654 |
) |
|
|
(513 |
) |
|
|
(346 |
) |
|
|
129 |
|
|
Decrease in
deferred taxes |
|
(1,032 |
) |
|
|
(1,728 |
) |
|
|
(1,594 |
) |
|
|
(3,122 |
) |
|
|
Net cash provided by (used) in operating
activities |
|
583 |
|
|
|
3,420 |
|
|
|
3,957 |
|
|
|
(4,240 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
(2,198 |
) |
|
|
(3,992 |
) |
|
|
(5,007 |
) |
|
|
(8,493 |
) |
|
Proceeds from
disposal of property, plant and equipment |
|
436 |
|
|
|
345 |
|
|
|
720 |
|
|
|
762 |
|
|
Acquisition of
intangible assets |
|
(47 |
) |
|
|
(120 |
) |
|
|
(182 |
) |
|
|
(120 |
) |
|
Proceeds from
disposal of equity-accounted investment |
|
3,508 |
|
|
|
138 |
|
|
|
3,508 |
|
|
|
391 |
|
|
Repayment of loans
by equity-accounted investments |
|
250 |
|
|
|
- |
|
|
|
250 |
|
|
|
112 |
|
|
Loan to
equity-accounted investment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(112 |
) |
|
Net change in
settlement assets |
|
(43 |
) |
|
|
(10,131 |
) |
|
|
(11,280 |
) |
|
|
(12,015 |
) |
|
|
Net cash provided by
(used in) investing activities |
|
1,906 |
|
|
|
(13,760 |
) |
|
|
(11,991 |
) |
|
|
(19,475 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from bank
overdraft |
|
69,012 |
|
|
|
167,224 |
|
|
|
128,586 |
|
|
|
313,292 |
|
|
Repayment of bank
overdraft |
|
(66,048 |
) |
|
|
(175,380 |
) |
|
|
(128,841 |
) |
|
|
(312,302 |
) |
|
Long-term
borrowings utilized |
|
8,557 |
|
|
|
9,083 |
|
|
|
11,028 |
|
|
|
10,142 |
|
|
Repayment of
long-term borrowings |
|
(3,184 |
) |
|
|
(1,688 |
) |
|
|
(5,813 |
) |
|
|
(3,268 |
) |
|
Acquisition of
treasury stock |
|
(198 |
) |
|
|
(108 |
) |
|
|
(198 |
) |
|
|
(293 |
) |
|
Proceeds from
issue of shares |
|
2 |
|
|
|
327 |
|
|
|
23 |
|
|
|
333 |
|
|
Guarantee fee |
|
- |
|
|
|
(100 |
) |
|
|
- |
|
|
|
(100 |
) |
|
Net change in
settlement obligations |
|
197 |
|
|
|
9,581 |
|
|
|
10,893 |
|
|
|
11,568 |
|
|
|
Net cash provided
(used in) by financing activities |
|
8,338 |
|
|
|
8,939 |
|
|
|
15,678 |
|
|
|
19,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash |
|
2,005 |
|
|
|
4,806 |
|
|
|
1,562 |
|
|
|
(3,681 |
) |
Net
increase (decrease) in cash, cash equivalents and restricted
cash |
|
12,832 |
|
|
|
3,405 |
|
|
|
9,206 |
|
|
|
(8,024 |
) |
Cash, cash
equivalents and restricted cash – beginning of period |
|
55,006 |
|
|
|
93,371 |
|
|
|
58,632 |
|
|
|
104,800 |
|
Cash, cash
equivalents and restricted cash – end of period |
$ |
67,838 |
|
|
$ |
96,776 |
|
|
$ |
67,838 |
|
|
$ |
96,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lesaka Technologies, Inc.
Attachment A
Operating segment revenue, operating
(loss) income and operating (loss) margin:
Three months ended December 31, 2023,
and 2022 and September 30, 2023
|
|
|
|
|
|
|
|
Three months ended |
Change - actual |
Change – constant exchange rate(1) |
|
|
|
|
|
|
|
|
Dec 31, 2023 |
|
Dec 31, 2022 |
|
Sep 30, 2023 |
Q2 ’24vs Q2’23 |
Q2 ’24vs Q1’24 |
Q2 ’24vs Q2’23 |
Q2 ’24vs Q1’24 |
Key segmental data, in ’000, exceptmargins |
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
127,870 |
|
|
$ |
120,634 |
|
|
$ |
121,361 |
|
6% |
|
5% |
|
13% |
|
5% |
|
|
Consumer |
|
|
16,707 |
|
|
|
15,434 |
|
|
|
15,580 |
|
8% |
|
7% |
|
16% |
|
7% |
|
|
|
|
Subtotal:
Operating segments |
|
|
144,577 |
|
|
|
136,068 |
|
|
|
136,941 |
|
6% |
|
6% |
|
14% |
|
6% |
|
|
|
|
Intersegment
eliminations |
|
|
(684) |
|
|
|
- |
|
|
|
(852) |
|
nm |
|
(20%) |
|
nm |
|
(20%) |
|
|
|
|
|
Consolidated revenue |
|
$ |
143,893 |
|
|
$ |
136,068 |
|
|
$ |
136,089 |
|
6% |
|
6% |
|
13% |
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
8,693 |
|
|
$ |
9,120 |
|
|
$ |
8,061 |
|
(5%) |
|
8% |
|
2% |
|
8% |
|
|
Consumer |
|
|
2,948 |
|
|
|
578 |
|
|
|
2,480 |
|
410% |
|
19% |
|
445% |
|
19% |
|
|
|
Group costs |
|
|
(2,011) |
|
|
|
(2,256) |
|
|
|
(1,822) |
|
(11%) |
|
10% |
|
(5%) |
|
10% |
|
|
|
|
Group Adjusted
EBITDA |
|
$ |
9,630 |
|
|
$ |
7,442 |
|
|
$ |
8,719 |
|
29% |
|
10% |
|
38% |
|
10% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA margin (%) |
|
|
|
|
|
|
|
|
|
|
|
|
Merchant |
|
|
6.8% |
|
|
|
7.6% |
|
|
|
6.6% |
|
|
|
|
|
|
Consumer |
|
|
17.6% |
|
|
|
3.7% |
|
|
|
15.9% |
|
|
|
|
|
|
|
Group
Adjusted EBITDA margin |
|
|
6.7% |
|
|
|
5.5% |
|
|
|
6.4% |
|
|
|
|
|
(1) – This information shows
what the change in these items would have been if the USD/ ZAR
exchange rate that prevailed during Q2 2024 also prevailed during
Q2 2023 and Q1 2024.
Six months ended December 31, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change -actual |
Change –constantexchangerate(1) |
|
|
|
|
|
|
|
|
Six months ended December
31, |
|
F2023 vsF2022 |
F2023 vsF2022 |
Key segmental data, in ’000, except margins |
|
2023 |
|
|
2022 |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
249,231 |
|
|
$ |
230,416 |
|
|
8% |
|
17% |
|
|
Consumer |
|
|
32,287 |
|
|
|
30,438 |
|
|
6% |
|
15% |
|
|
|
|
Subtotal:
Operating segments |
|
|
281,518 |
|
|
|
260,854 |
|
|
8% |
|
17% |
|
|
|
|
Intersegment
eliminations |
|
|
(1,536) |
|
|
|
- |
|
|
nm |
|
nm |
|
|
|
|
|
Consolidated revenue |
|
$ |
279,982 |
|
|
$ |
260,854 |
|
|
7% |
|
16% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
Merchant |
|
$ |
16,754 |
|
|
$ |
17,013 |
|
|
(2%) |
|
7% |
|
|
Consumer |
|
|
5,428 |
|
|
|
(816) |
|
|
nm |
|
nm |
|
|
|
Group costs |
|
|
(3,833) |
|
|
|
(4,556) |
|
|
(16%) |
|
(9%) |
|
|
|
|
Group Adjusted
EBITDA |
|
$ |
18,349 |
|
|
$ |
11,641 |
|
|
58% |
|
71% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Adjusted EBITDA (loss) margin (%) |
|
|
|
|
|
|
|
|
|
|
Merchant |
|
|
6.7% |
|
|
|
7.4% |
|
|
|
|
|
Consumer |
|
|
16.8% |
|
|
|
(2.7%) |
|
|
|
|
|
|
Group
Adjusted EBITDA (loss) margin |
|
|
6.6% |
|
|
|
4.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) – This information shows
what the change in these items would have been if the USD/ ZAR
exchange rate that prevailed during the first half of fiscal 2024
also prevailed during the first half of fiscal 2023. Loss
from equity-accounted investments:
The table below presents the relative loss from
our equity-accounted investments:
|
|
Three months ended December
31, |
|
|
Six months ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
%change |
|
|
2023 |
|
|
|
2022 |
|
|
%change |
Finbond |
$ |
- |
|
$ |
- |
|
nm |
|
|
$ |
(1,445) |
|
|
|
(2,631) |
|
|
(45%) |
|
|
Share of net loss |
|
- |
|
|
- |
|
nm |
|
|
|
(278) |
|
|
|
(1,521) |
|
|
(82%) |
|
|
Impairment |
|
- |
|
|
- |
|
nm |
|
|
|
(1,167) |
|
|
|
(1,110) |
|
|
5% |
|
Other |
|
43 |
|
|
18 |
|
139% |
|
|
|
83 |
|
|
|
32 |
|
|
159% |
|
|
Share of net income |
|
43 |
|
|
18 |
|
139% |
|
|
|
83 |
|
|
|
32 |
|
|
159% |
|
|
Loss from equity-accounted investments |
$ |
43 |
|
$ |
18 |
|
139% |
|
|
$ |
(1,362) |
|
|
$ |
(2,599) |
|
|
(48%) |
|
Lesaka Technologies, Inc.
Attachment B
Reconciliation of GAAP loss attributable
to Lesaka to Group Adjusted EBITDA loss:
Three and six months ended December 31,
2023 and 2022
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
|
|
|
|
|
December 31, |
|
Sept 30, |
|
Dec-31 |
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
Loss
attributable to Lesaka - GAAP |
$ |
(2,707 |
) |
|
$ |
(6,649 |
) |
|
$ |
(5,651 |
) |
|
$ |
(8,358 |
) |
|
$ |
(17,345 |
) |
Loss from equity
accounted investments |
|
(43 |
) |
|
|
(18 |
) |
|
|
1,405 |
|
|
|
1,362 |
|
|
|
2,599 |
|
|
Net loss before
(earnings) loss from equity-accounted investments |
|
(2,750 |
) |
|
|
(6,667 |
) |
|
|
(4,246 |
) |
|
|
(6,996 |
) |
|
|
(14,746 |
) |
|
Income tax
(benefit) expense |
|
686 |
|
|
|
364 |
|
|
|
264 |
|
|
|
950 |
|
|
|
395 |
|
|
|
Loss before income
tax expense |
|
(2,064 |
) |
|
|
(6,303 |
) |
|
|
(3,982 |
) |
|
|
(6,046 |
) |
|
|
(14,351 |
) |
|
|
Reversal of
allowance for doubtful EMI loans receivable |
|
- |
|
|
|
- |
|
|
|
(250 |
) |
|
|
(250 |
) |
|
|
- |
|
|
|
Net (gain) loss on
disposal of equity-accounted investment |
|
- |
|
|
|
112 |
|
|
|
- |
|
|
|
- |
|
|
|
(136 |
) |
|
|
Unrealized (gain)
loss FV for currency adjustments |
|
(122 |
) |
|
|
- |
|
|
|
102 |
|
|
|
(20 |
) |
|
|
- |
|
|
|
Operating
income/(loss) after PPA amortization and net interest
(non-GAAP) |
|
(2,186 |
) |
|
|
(6,191 |
) |
|
|
(4,130 |
) |
|
|
(6,316 |
) |
|
|
(14,487 |
) |
|
|
PPA amortization
(amortization of acquired intangible assets) |
|
3,592 |
|
|
|
3,842 |
|
|
|
3,608 |
|
|
|
7,200 |
|
|
|
7,770 |
|
|
|
|
Operating
income/(loss) before PPA amortization after net interest
(non-GAAP) |
|
1,406 |
|
|
|
(2,349 |
) |
|
|
(522 |
) |
|
|
884 |
|
|
|
(6,717 |
) |
|
|
|
Interest
expense |
|
4,822 |
|
|
|
4,388 |
|
|
|
4,909 |
|
|
|
9,731 |
|
|
|
8,424 |
|
|
|
|
Interest
income |
|
(485 |
) |
|
|
(389 |
) |
|
|
(449 |
) |
|
|
(934 |
) |
|
|
(800 |
) |
|
|
|
|
Operating
income/(loss) before PPA amortization and net interest
(non-GAAP) |
|
5,743 |
|
|
|
1,650 |
|
|
|
3,938 |
|
|
|
9,681 |
|
|
|
907 |
|
|
|
|
|
Depreciation
(excluding amortization of intangibles) |
|
2,221 |
|
|
|
2,077 |
|
|
|
2,248 |
|
|
|
4,469 |
|
|
|
4,147 |
|
|
|
|
|
Stock-based
compensation charges |
|
1,804 |
|
|
|
2,849 |
|
|
|
1,759 |
|
|
|
3,563 |
|
|
|
4,311 |
|
|
|
|
|
Lease
adjustments |
|
678 |
|
|
|
747 |
|
|
|
696 |
|
|
|
1,374 |
|
|
|
1,559 |
|
|
|
|
|
Once-off
items |
|
(816 |
) |
|
|
119 |
|
|
|
78 |
|
|
|
(738 |
) |
|
|
717 |
|
|
|
|
|
|
Group Adjusted EBITDA - Non-GAAP |
$ |
9,630 |
|
|
$ |
7,442 |
|
|
$ |
8,719 |
|
|
$ |
18,349 |
|
|
$ |
11,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
December 31, |
|
Sep 30, |
|
Dec-31 |
|
|
2023 |
|
|
2022 |
|
2023 |
|
2023 |
|
|
2022 |
Once-off
items comprises: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction costs |
$ |
136 |
|
|
$ |
119 |
|
$ |
78 |
|
$ |
214 |
|
|
$ |
322 |
|
(Income recognized) Expenses
incurred related to closure of legacy businesses |
|
(952 |
) |
|
|
- |
|
|
- |
|
|
(952 |
) |
|
|
395 |
|
|
$ |
(816 |
) |
|
$ |
119 |
|
$ |
78 |
|
$ |
(738 |
) |
|
$ |
717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Once-off items are non-recurring in nature,
however, certain items may be reported in multiple quarters. For
instance, transaction costs include costs incurred related to
acquisitions and transactions consummated or ultimately not
pursued. The transactions can span multiple quarters, for instance
in fiscal 2022 we incurred significant transaction costs related to
the acquisition of Connect over a number of quarters, and the
transactions are generally non-recurring.
(Income recognized) Expenses incurred related to
closure of legacy businesses represents (i) gains recognized
related to the release of the foreign currency translation reserve
on deconsolidation of a subsidiaries and (ii) costs incurred
related to subsidiaries which we are in the process of
deregistering/ liquidation and therefore we consider these costs
non-operational and ad hoc in nature.
Reconciliation of GAAP net loss and loss
per share, basic, to fundamental net earnings (loss) and earnings
(loss) per share, basic:
Three months ended December 31, 2023 and
2022
|
Net (loss) income(USD '000) |
|
(L)PS, basic (USD) |
|
Net (loss) income(ZAR '000) |
|
(L)PS, basic (ZAR) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
GAAP |
(2,707 |
) |
|
(6,649 |
) |
|
(0.04 |
) |
|
(0.11 |
) |
|
(50,819 |
) |
|
(116,463 |
) |
|
(0.79 |
) |
|
(1.86 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization,
net |
2,624 |
|
|
2,766 |
|
|
|
|
|
|
49,104 |
|
|
48,432 |
|
|
|
|
|
Stock-based compensation
charge |
1,804 |
|
|
2,849 |
|
|
|
|
|
|
33,810 |
|
|
49,903 |
|
|
|
|
|
Non core international -
unrealized currency loss |
(952 |
) |
|
- |
|
|
|
|
|
|
(17,648 |
) |
|
- |
|
|
|
|
|
Transaction costs |
136 |
|
|
119 |
|
|
|
|
|
|
2,556 |
|
|
2,084 |
|
|
|
|
|
Net loss on disposal of
equity-accounted investments |
- |
|
|
112 |
|
|
|
|
|
|
- |
|
|
1,962 |
|
|
|
|
|
Fundamental |
905 |
|
|
(803 |
) |
|
0.01 |
|
|
(0.01 |
) |
|
17,003 |
|
|
(14,082 |
) |
|
0.26 |
|
|
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended December 31, 2023 and
2022
|
Net (loss) income (USD '000) |
|
(L) EPS, basic (USD) |
|
Net (loss) income (ZAR '000) |
|
(L)EPS, basic (ZAR) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
GAAP |
(8,358 |
) |
|
(17,345 |
) |
|
(0.13 |
) |
|
(0.28 |
) |
|
(156,454 |
) |
|
(299,169 |
) |
|
(2.43 |
) |
|
(4.69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
charge |
3,563 |
|
|
4,311 |
|
|
|
|
|
|
66,607 |
|
|
74,357 |
|
|
|
|
|
Intangible asset amortization,
net |
5,249 |
|
|
5,605 |
|
|
|
|
|
|
98,208 |
|
|
96,679 |
|
|
|
|
|
Impairment of equity method
investments |
1,167 |
|
|
1,110 |
|
|
|
|
|
|
22,084 |
|
|
19,145 |
|
|
|
|
|
Non core international -
unrealized currency loss |
(952 |
) |
|
395 |
|
|
|
|
|
|
(17,648 |
) |
|
6,813 |
|
|
|
|
|
Allowance for doubtful EMI
loans receivable |
(250 |
) |
|
- |
|
|
|
|
|
|
(4,741 |
) |
|
- |
|
|
|
|
|
Transaction costs |
214 |
|
|
322 |
|
|
|
|
|
|
4,021 |
|
|
5,554 |
|
|
|
|
|
Net loss on disposal of
equity-accounted investments |
- |
|
|
(136 |
) |
|
|
|
|
|
- |
|
|
(2,346 |
) |
|
|
|
|
Fundamental |
633 |
|
|
(5,738 |
) |
|
0.01 |
|
|
(0.09 |
) |
|
12,077 |
|
|
(98,967 |
) |
|
0.19 |
|
|
(1.55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lesaka Technologies, Inc.
Attachment C
Reconciliation of net loss used to
calculate loss per share basic and diluted and headline loss per
share basic and diluted:
Three months ended December 31, 2023 and
2022
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net loss
(USD’000) |
(5,651 |
) |
|
(6,649 |
) |
|
Adjustments: |
|
|
|
|
|
Net loss on sale of
equity-accounted investments |
- |
|
|
112 |
|
|
|
Profit on sale of property,
plant and equipment |
(163 |
) |
|
(113 |
) |
|
|
Tax effects on above |
44 |
|
|
32 |
|
|
|
|
|
|
|
|
Net loss used to
calculate headline loss (USD’000) |
(5,770 |
) |
|
(6,618 |
) |
|
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share basic loss
and headline loss per share basic loss (‘000) |
63,805 |
|
|
62,763 |
|
|
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share diluted loss
and headline loss per share diluted loss (‘000) |
63,805 |
|
|
62,763 |
|
|
|
|
|
|
|
|
Headline loss per
share: |
|
|
|
|
|
Basic, in USD |
(0.09 |
) |
|
(0.11 |
) |
|
|
Diluted, in USD |
(0.09 |
) |
|
(0.11 |
) |
|
Six months ended December 31, 2023 and
2022
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net loss
(USD’000) |
(8,358 |
) |
|
(17,345 |
) |
|
Adjustments: |
|
|
|
|
|
Impairment of equity method
investments |
1,167 |
|
|
1,110 |
|
|
|
Net gain on sale of
equity-accounted investment |
- |
|
|
(136 |
) |
|
|
Profit on sale of property,
plant and equipment |
(199 |
) |
|
(321 |
) |
|
|
Tax effects on above |
54 |
|
|
90 |
|
|
|
|
|
|
|
|
Net loss used to
calculate headline loss (USD’000) |
(7,336 |
) |
|
(16,602 |
) |
|
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share basic loss
and headline loss per share basic loss (‘000) |
63,134 |
|
|
62,498 |
|
|
|
|
|
|
|
|
Weighted average
number of shares used to calculate net loss per share diluted loss
and headline loss per share diluted loss (‘000) |
63,134 |
|
|
62,498 |
|
|
|
|
|
|
|
|
Headline loss per
share: |
|
|
|
|
|
Basic, in USD |
(0.12 |
) |
|
(0.27 |
) |
|
|
Diluted, in USD |
(0.12 |
) |
|
(0.27 |
) |
|
Calculation of the denominator for headline diluted loss
per share
|
|
|
Three months endedDecember
31, |
|
Six months endedDecember 31, |
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
Basic
weighted-average common shares outstanding and unvested restricted
shares expected to vest under GAAP |
63,805 |
|
62,763 |
|
63,134 |
|
62,498 |
|
|
Denominator for headline
diluted loss per share |
63,805 |
|
62,763 |
|
63,134 |
|
62,498 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used to
calculate headline diluted loss per share represents the
denominator for basic weighted-average common shares outstanding
and unvested restricted shares expected to vest plus the effect of
dilutive securities under GAAP. We use this number of fully diluted
shares outstanding to calculate headline diluted loss per share
because we do not use the two-class method to calculate headline
diluted loss per share.
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