Q4 2024 Lesaka Technologies Inc Earnings Call Transcript
Key Points
- Group adjusted EBITDA increased by 55% to ZAR691 million, aligning with the company's guidance.
- Operating income turned positive, from a ZAR275 million loss in FY2023 to a ZAR67 million profit in FY2024.
- Fundamental earnings per share improved significantly, turning positive to ZAR1.06, an increase of ZAR3.72 per share.
- Net debt to group adjusted EBITDA ratio improved from 4.5 times to 2.5 times year-over-year.
- The company successfully executed two acquisitions, Touchsides and Adumo, enhancing their market position and growth opportunities.
- The company faced challenges in execution, with areas identified for improvement in efficiency and speed.
- The operating environment for the SME sector remains challenging due to high interest rates, inflation, and load shedding.
- The credit business was impacted by economic headwinds, leading to lower advances and book size.
- Revenue growth was negatively impacted by the change in sales mix of airtime revenue recognized as principal versus agent.
- The company incurred ZAR43 million in one-off transaction costs related to the Adumo acquisition.
Hello, everyone, and welcome to the Lesaka Technologies webcast and conference call for the fourth quarter of fiscal 2024. As a reminder, the webcast is being recorded and the presentation can be accessed through the webcast link.
(Operator Instructions) 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 relations website, ir.lesakatech.com. Additionally, Lesaka filed its Form 10-K 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-K regarding the risks and uncertainties associated with forward-looking statements also as a domestic filer in the United States, we report results in US dollars under US GAAP. However, it is important to note that our operational currency is South African rand and as such, we analyze our performance in South Africa rand.
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