Lesaka(US:LSAK)2025-05-07 20:11Financial Performance - Consolidated revenue for Q3 2025 was $135.67 million, a decrease of 2% from $138.19 million in Q3 2024[323]. - Revenue decreased by 4% in ZAR, primarily due to fewer low margin prepaid airtime sales and lower contribution from legacy Enterprise businesses, partially offset by Adumo and Recharger inclusion[322]. - Group Adjusted EBITDA for Q3 2025 was $12.8 million, a 32% increase from $9.7 million in Q3 2024[333]. - Net loss attributable to the company was $22.06 million, a 445% increase from $4.05 million in Q3 2024[323]. - Year-to-date revenue was flat in USD and decreased by 1.1% in ZAR, impacted by the inclusion of Adumo and Recharger, and fewer Pinned Airtime sales[347]. - Group Adjusted EBITDA for the nine months ended March 31, 2025, was $33,970,000, a 27% increase from $26,678,000 in the prior year[364]. - The total consolidated revenue in South African Rand for the nine months ended March 31, 2025, was ZAR 7,754,951,000, a 1% decrease from ZAR 7,842,078,000 in the prior year[366]. Consumer Division Growth - The Consumer Division's active EasyPay Everywhere transactional account base grew to 1.7 million in Q3 2025, a 16% increase from 1.5 million in Q3 2024[292]. - Total throughput for the Consumer Division's EasyPay Loans reached ZAR 641 million in Q3 2025, a 54% increase from ZAR 416 million in Q3 2024[292]. - The average revenue per user (ARPU) for permanent grant beneficiaries increased to approximately ZAR 106 per month in Q3 2025, up from ZAR 90 in Q3 2024[297]. - The consumer loan book increased by 59% to ZAR 808 million as of March 31, 2025, compared to ZAR 509 million a year ago[300]. - The company originated approximately 320,000 loans during the quarter, reflecting strong demand for tailored loan products[300]. - Consumer segment revenue increased due to higher transaction fees from a larger EPE account holder base and increased loan originations, leading to a Segment Adjusted EBITDA margin of 26.3%, up from 21.0% year-over-year[341][342]. Merchant Division Performance - The Merchant Division deployed 81,106 devices in Q3 2025, a 62% increase from 50,211 devices in Q3 2024, with total throughput reaching ZAR 9.9 billion, up 154% year-on-year[278]. - The number of devices in deployment for cash management solutions reached 4,550, with cash settlements for the quarter totaling ZAR 27.5 billion, a 2% increase year-on-year[282]. - Supplier enabled payments throughput increased by 57% to ZAR 5.9 billion in Q3 2025, compared to ZAR 3.8 billion in Q3 2024[289]. - Merchant segment revenue decreased by 2% to $334,442,000, while Consumer segment revenue increased by 36% to $68,097,000, and Enterprise segment revenue decreased by 7% to $30,259,000[364]. Enterprise Division Developments - The Enterprise Division's offerings include a new payment switch, Prism Switch, enhancing service capabilities for large corporates and other clients[298]. - Enterprise segment revenue decreased significantly, with a Segment Adjusted EBITDA margin dropping to 1.5% in fiscal 2025 from 7.4% in fiscal 2024[374]. Debt and Financing - The company completed a ZAR 4.5 billion refinance of its debt facilities, reducing the overall weighted average borrowing rate by approximately 1.3% per year[304]. - Long-term borrowings outstanding as of March 31, 2025, amounted to ZAR 3.6 billion ($194.7 million), which includes ZAR 3.1 billion used to refinance previous long-term borrowings[389]. - Net interest charge increased to $15.0 million (ZAR 272.5 million) from $12.8 million (ZAR 239.0 million) due to higher borrowings, partially offset by increased interest received from Adumo[347]. Operational Costs - Selling, general and administration expenses increased by $30.1 million (ZAR 502.4 million), or 44.8% in USD, primarily due to the inclusion of Adumo and higher employee-related expenses[353]. - Cost of goods sold decreased by $26.2 million (7.9%) in USD and ZAR by ZAR 685.3 million (11.1%), mainly due to decreased Pinned Airtime sales[352]. - Group costs increased by 25% to $7,541,000 due to higher employee costs and other operational expenses[375]. Cash Flow and Investments - Cash and cash equivalents as of March 31, 2025, totaled $71.0 million, with a significant portion being ZAR 1.2 billion ($65.9 million) in ZAR-denominated balances[384]. - Net cash provided by operating activities during the third quarter of fiscal 2025 was $10.7 million, a turnaround from net cash utilized of $19.2 million in the same quarter of fiscal 2024[393]. - Cash used in investing activities for the year to date of fiscal 2025 included capital expenditures of $13.1 million, primarily for the acquisition of vaults and POS devices[402]. - The company expects capital spending for Q4 fiscal 2025 to include acquisitions of POS devices, vaults, and ATM infrastructure, with outstanding capital commitments of $0.1 million as of March 31, 2025[410].