Q3 2024 Lesaka Technologies Inc Earnings Call Transcript
Key Points
- Lesaka Technologies Inc (JSE:LSK) reported a 14% year-on-year increase in revenue to ZAR 7.8 billion for the first nine months of fiscal 2024.
- EBITDA grew by 69% year-on-year to ZAR 501 million in constant currency terms.
- The company achieved two successive quarters of positive fundamental earnings per share.
- Lesaka Technologies Inc (JSE:LSK) reduced its net debt to Group adjusted EBITDA ratio from 4.2x in Q3 2023 to 2.6x in Q3 2024.
- The acquisition of Adumo is expected to expand Lesaka's market presence to Namibia, Botswana, Zambia, and Kenya, increasing the addressable market to 140 million people.
- Revenue for the quarter was marginally lower than guidance, impacted by a higher percentage of PIN-less airtime and data bundle sales.
- The economic environment in Southern Africa remains challenging, with no major change in the economic outlook anticipated.
- International money transfers saw a reduction due to changes in the regulatory environment, impacting revenue.
- The company experienced increased bankruptcy among mid-market SME sector clients, affecting the net growth in the vault estate.
- Higher interest rates and a challenging economic environment have impacted the growth of Lesaka's credit business.
Hello, everyone, and welcome to the Lesaka Technologies webcast and conference call for the third quarter of fiscal 2024. 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 dial-in numbers provided. Management will address any questions you may have at the end of this presentation. For those joining us via the webcast, you can ask your questions live by raising your hand at Zoom. For 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.lesakatech.com. Additionally, Lesaka filed its Form 10-Q after the U.S. market closed yesterday, which is available on our Investor Relations website.
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
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