\nLesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released its results for the third quarter ended March 31, 2023 (\u201cQ3 2023\u201d) as the turnaround in the Group\u2019s Consumer Division gathers momentum and the Merchant Division continues to outperform.<\/p>\n
\nPerformance highlights for Q3 2023:<\/p>\n
- \n
- \nRevenue of R2.4 billion, compared to R549.8 million in Q3 2022, an increase of 337% due to the inclusion and continued outperformance of the Connect Group and momentum in the successful turnaround of the Consumer Division.<\/p>\n<\/li>\n
- \nNet loss attributable to Lesaka of R104.4 million, compared to R51.9 million in Q3 2022. Operating income (loss) before PPA amortization and net interest, a non-GAAP measure and reconciled below, was income of R34.0 million, compared to a loss R146.8 million in Q3 2022, and excludes amortization of acquired intangible assets R67.3 million, compared with R0.3 million in Q3 2022.<\/p>\n<\/li>\n
- \nAdjusted EBITDA of R137.1 million, a 221% improvement compared to the Q3 2022 loss of R112.7 million.<\/p>\n<\/li>\n
- \nContinued operating improvement demonstrated by further narrowing the operating loss to R33.2 million, representing an 77%(1)<\/sup> improvement from an operating loss of R147.1 million reported for Q3 2022.<\/p>\n<\/li>\n
- \nContinued outperformance from the Merchant Division, delivering Adjusted EBITDA of R148.7 million.<\/p>\n<\/li>\n
- \nSuccessful turnaround of the Consumer Division delivering Adjusted EBITDA of R29.6 million, compared to a loss of R13.5 million in Q3 2022.<\/p>\n<\/li>\n
- \nPositive net cash generated by operating activities of R133 million, compared to an outflow of R81.3 million in Q3 2022.<\/p>\n<\/li>\n<\/ul>\n
\n
\n \n \nNote 1 \u2013 before reorganisation costs of R91.4 million in Q3 2022<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\nLesaka Technologies has leveraged disruptive technologies to build a unique fintech platform which meets the needs of both merchants and consumers operating in informal and formal markets. More than 72,000 merchants use the Group\u2019s cash management solutions, bill payment technologies, value-added services, business funding and card-acquiring solutions and 1.3 million consumers access Lesaka\u2019s unsecured credit, transactional banking and micro-insurance products and services.<\/p>\n
\nLesaka’s strong third quarter results were driven by the transformational acquisition and outperformance of the Connect Group in the Merchant Division and the successful turnaround of the Group\u2019s Consumer Division, despite the persistently challenging economic environment.<\/p>\n
\nThe Merchant Division continues to exceed expectations and grow across all products. A key highlight of the quarter was the performance of the informal market business, Kazang, which delivered the best quarter in the business\u2019 history.<\/p>\n
\nLincoln Mali CEO Lesaka Southern Africa who has been driving the turnaround in the consumer business commented: \u201cWe work hard to add value to the lives of grant beneficiaries by understanding their needs and creating relevant and affordable financial products and services. We have been largely focused on turning the consumer business around as quickly as possible and now that we have achieved EBITDA profitability we can focus all our efforts on growth.\u201d<\/p>\n
\nLesaka Group CEO Chris Meyer added \u201cAs a result of our improved trading, cash flow and our ability to deliver against what we have promised, our funders have, in a show of confidence, extended and increased our facilities providing us with flexibility and access to resources to execute on our growth plans. Q3 represents another quarter of growth and transformation. We are excited by the Merchant Division\u2019s outperformance and another quarter of continued improvement and profitability in the Consumer Division where we are moving strongly on to the front foot.\u201d<\/p>\n
\nThe full SENS announcement can be seen here<\/a>.<\/p>\n
\n
\n \n \nQ3 – ended 31 March<\/p>\n<\/td>\n
\n \nFY23 Q3<\/p>\n<\/td>\n
\n \nFY22 Q3<\/p>\n<\/td>\n
\n \nFY23 Q3<\/p>\n<\/td>\n
\n \nFY22 Q3<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \nZAR\u2019000<\/p>\n<\/td>\n
\n \nZAR\u2019000<\/p>\n<\/td>\n
\n \n$\u2019000<\/p>\n<\/td>\n
\n \n$\u2019000<\/p>\n<\/td>\n<\/tr>\n
\n \n Average exchange rate for conversion from ZAR to $<\/i><\/b><\/p>\n<\/td>\n
\n 17.93<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n15.61<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 17.93<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n15.61<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n Net loss attributable to Lesaka (GAAP)<\/b><\/p>\n<\/td>\n
\n (104,363<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n (51,940<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n (5,820<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n (3,327<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \nEarnings from equity-accounted investments<\/p>\n<\/td>\n
\n (305<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n (17<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nIncome tax (benefit) expense<\/p>\n<\/td>\n
\n (15,422<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n7,338<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n (860<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n470<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n Net loss before income tax (benefit) expense<\/b><\/p>\n<\/td>\n
\n (120,090<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n (44,602<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n (6,697<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n (2,857<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \nInterest expense<\/p>\n<\/td>\n
\n 89,372<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n10,788<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 4,984<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n691<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nInterest income<\/p>\n<\/td>\n
\n (8,410<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n(11,881<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n (469<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n(761<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \nPPA amortization (Amortization of acquired intangible assets)<\/p>\n<\/td>\n
\n 67,269<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n256<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 3,789<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n15<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOther items, comprising:<\/p>\n<\/td>\n
\n 5,900<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(101,384<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n 329<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(6,494<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \nLoss on disposal of equity accounted investments<\/p>\n<\/td>\n
\n 5,900<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n5,402<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 329<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n346<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nGain on disposal of equity securities<\/p>\n<\/td>\n
\n –<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(11,241<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n –<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(720<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \nGain related to fair value adjustment to currency options<\/p>\n<\/td>\n
\n –<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(95,545<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n –<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(6,120<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n Operating income (loss) before PPA amortization and net interest (Non-GAAP)<\/b><\/p>\n<\/td>\n
\n 34,041<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n (146,823<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n 1,936<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n (9,406<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \nPPA amortization (Amortization of acquired intangible assets)<\/p>\n<\/td>\n
\n (67,269<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n(256<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n (3,789<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n(15<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n Operating loss<\/b><\/p>\n<\/td>\n
\n (33,228<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n (147,079<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n (1,853<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n (9,421<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \nDepreciation and amortization<\/p>\n<\/td>\n
\n 107,143<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n7,228<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 5,975<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n463<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n Operating loss before depreciation and amortization (Non-GAAP)<\/b><\/p>\n<\/td>\n
\n 73,915<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n (139,851<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n 4,122<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n (8,958<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdjusted for:<\/p>\n<\/td>\n
\n –<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n –<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nStock-based compensation<\/p>\n<\/td>\n
\n 29,480<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n9,586<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 1,644<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n614<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nLease adjustments<\/p>\n<\/td>\n
\n 12,481<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n13,895<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 696<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n890<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOnce-off items<\/p>\n<\/td>\n
\n 21,231<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n3,669<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 1,184<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n235<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n Group Adjusted EBITDA (Non-GAAP)<\/b><\/p>\n<\/td>\n
\n 137,107<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n (112,701<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n 7,646<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n (7,219<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n\u00a0<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230509006172\/en\/<\/a><\/span><\/p>\n
\nInvestor Relations Contact:
\n
Phillipe Welthagen
\n
Email: phillipe.welthagen@lesakatech.com
\n<\/a>
Mobile: +27 84 512 5393<\/p>\n\nFNK IR:
\n
Rob Fink \/ Matt Chesler, CFA
\n
Email: lsak@fnkir.com<\/a><\/p>\n\nMedia Relations Contact:
\n
Janine Bester Gertzen
\n
Email: Janine@thenielsennetwork.com<\/a><\/p>\nKEYWORDS:<\/b> Africa South Africa<\/p>\n
INDUSTRY KEYWORDS:<\/b> Technology Insurance Payments Finance Security Fintech Banking Professional Services Software<\/p>\n
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<\/td>\n<\/tr>\n