Lesaka Increases Revenue 9% for the Fourth Quarter, Exceeding the Upper End of its Revenue Guidance
12 Setembro 2023 - 5:07PM
Business Wire
Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today
released its results for the fourth quarter (“Q4 2023”) and full
year (“FY 2023”) ended June 30, 2023.
Performance highlights for Q4 2023:
- Revenue of ZAR 2.5 billion ($133.1 million) in Q4 2023,
compared to ZAR 1.9 billion ($121.8 million) for the quarter ended
June 30, 2022 (“Q4 2022”), with the 9% increase attributable to
inclusion of the Connect Group for the full period, excellent
growth in the Merchant Division, driven by the Connect and Kazang
businesses, as well as the successful turnaround of the Consumer
Division. On a constant currency basis revenue grew 32%.
- The significant financial turnaround is demonstrated by a
narrowing of the net loss to ZAR 223.2 million ($11.9 million) in
Q4 2023, despite also including a non-cash impairment charge
related to the pre-existing Merchant Division of ZAR 131.9 million
($7.0 million) and a non-cash PPA amortization charge of ZAR 67.3
million ($3.6 million). This compares to a net loss of ZAR 235.8
million ($15.1 million) in Q4 2022 and represents a 21%
improvement. Excluding the impact of the non-cash impairment
charge, Lesaka would have reported a net loss of ZAR 91.2 million
($4.9 million), representing a 68% improvement from the comparable
prior year period.
- Operating loss was ZAR 124.3 million ($6.6 million) in Q4 2023,
inclusive of a ZAR 131.9 million ($7.0 million) non-cash impairment
charge and a ZAR 67.3 million ($3.6 million) non-cash PPA
amortization charge. This is a significant improvement compared to
the operating loss of ZAR 157.5 million ($10.1 million) in Q4 2022,
inclusive of a PPA amortization charge ZAR 57.6 million ($3.7
million).
- Group Adjusted EBITDA of ZAR 158.3 million ($8.4million)
represents an improvement of 115% compared to the Q4 2022 Group
Adjusted EBITDA of ZAR 60.6 million ($3.9 million). On a constant
currency basis Group Adjusted EBITDA increased by 161%.
- Excellent performance from Merchant, delivering Segment
Adjusted EBITDA of ZAR 154.2 million ($8.2 million) in Q4 2023.
Outlook remains positive as Merchant extends its footprint across
Southern Africa’s largely untapped informal market.
- The Consumer Division reported a third consecutive quarter of
profitability delivering Segment Adjusted EBITDA of ZAR 46.5
million ($2.5 million) in Q4 2023, compared to a loss of ZAR 19.2
million ($1.2 million) in Q4 2022. With the divisional turnaround
largely complete, targeted interventions taken to grow the Consumer
Division are yielding positive results with revenue increasing 26%
on a constant currency basis, off a reduced cost base and in an
increasingly difficult operating environment.
- Continued momentum in achieving positive net cash provided by
operating activities of ZAR 182.9 million ($9.8 million) in Q4
2023, compared to net cash used by operating activities of ZAR
104.1 million ($6.7 million) in Q4 2022.
Lesaka Group CEO Chris Meyer said: “Fiscal 2023
represents a milestone for Lesaka. The successful turnaround in the
Consumer Division, and the seamless integration of the Connect
Group, enabled Lesaka to deliver continued growth and improved
profitability despite the particularly challenging macroeconomic
and socio-political conditions in South Africa. Simultaneously, our
Merchant Division continues to outperform the acquisition base
case, diversifying our business and positioning Lesaka as a true
FinTech innovator. Our Consumer Division reported a third
consecutive quarter of increasing profitability, evidencing our
transition from turnaround to growth.”
Mr. Meyer continued, “We continue to innovate and deliver
market-leading solutions to our customers with our results
demonstrating the value our customers place on our services and the
resilience of our business model in a challenging environment. The
continued digitalization of South Africa’s informal economy serves
as a durable catalyst for our business which we expect to continue
over the long term.”
Full release and webcast details at
https://ir.lesakatech.com/.
The discussion of our consolidated overall results of operations
is based on amounts as reflected in our unaudited condensed
consolidated financial statements which are prepared in
accordance with U.S. GAAP. We analyze our results of operations
both in U.S. dollars, as presented in the unaudited condensed
consolidated financial statements, and supplementally in ZAR,
because ZAR is the functional currency of the entities which
contribute the majority of our revenue and is the currency in which
the majority of our transactions are initially incurred and
measured. Due to the significant impact of currency fluctuations
between the U.S. dollar and the ZAR on our reported results and
because we use the U.S. dollar as our reporting currency, we
believe that the supplemental presentation of our results of
operations in ZAR is useful to investors to understand the changes
in the underlying trends of our business.
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 EBITDA and Group Adjusted EBITDA are
non-GAAP measures.
Below is the reconciliation between our GAAP measure and our
non-GAAP measures.
FY23 Q4
FY22 Q4
FY23 Q4
FY22 Q4
ZAR’000
ZAR’000
$’000
$’000
Average exchange rate for conversion
from ZAR to $
18.74
15.56
18.74
15.56
Loss attributable to Lesaka –
GAAP
(223 192
)
(235 783
)
(11 909
)
(15 149
)
Loss from equity accounted investments
47 509
38 802
2 535
2 493
Net loss before loss from
equity-accounted investments
(175 683
)
(196 981
)
(9 374
)
(12 656
)
Income tax (benefit) expense
(34 560
)
(6 646
)
(1 844
)
(427
)
Loss before income tax expense
(210 243
)
(203 627
)
(11 218
)
(13 083
)
Gain on disposal of equity securities
-
-
-
-
Net loss on disposal of equity-accounted
investment
225
467
12
30
Impairment loss
131 921
-
7 039
-
Unrealized loss FV for currency
adjustments
3 355
-
179
-
Operating income/(loss) after PPA
amortization and net interest (non-GAAP)
(74 742
)
(203 160
)
(3 988
)
(13 053
)
PPA amortization (amortization of acquired
intangible assets)
67 266
57 586
3 590
3 700
Operating income/(loss) before PPA
amortization after net interest (non-GAAP)
(7 476
)
(145 574
)
(398
)
(9 353
)
Interest expense
96 687
55 362
5 159
3 557
Interest income
(10 945
)
(9 743
)
(584
)
(626
)
Operating income/(loss) before PPA
amortization and net interest (non-GAAP)
78 266
(99 955
)
4 177
(6 422
)
Depreciation (excluding amortization of
intangibles)
41 303
27 877
2 203
1 791
Stock-based compensation charges
25 376
19 471
1 354
1 251
Lease adjustments
12 201
20 358
651
1 308
Once-off items
1 199
92 887
64
5 968
Group Adjusted EBITDA
(non-GAAP)
158 345
60 638
8 449
3 896
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230912482981/en/
Investor Relations Contacts: Phillipe Welthagen Email:
phillipe.welthagen@lesakatech.com Mobile: +27 84 512 5393 FNK IR:
Rob Fink / Matt Chesler, CFA Email: lsak@fnkir.com Media
Relations Contact: Janine Bester Gertzen Email:
janine@thenielsennetwork.com
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