Joint Stock Company Kaspi.kz(US:KSPI)2024-10-21 17:13Financial Data and Key Metrics Changes - The company reported a 25% year-over-year increase in net income and revenue for Q3 2024, with total payment volume (TPV) up 28% [3][4] - For the nine months of 2024, net income growth is projected at around 25% year-over-year, with consolidated revenue growth of 28% [5][26] - The overall performance for the company showed a strong net income increase of 18% and revenue growth of 28% [4][26] Business Line Data and Key Metrics Changes - The payments platform experienced a 38% increase in transaction volumes year-on-year in Q3, with TPV growth of 28% [12][13] - The marketplace platform saw a 45% increase in purchase trends year-on-year in Q3, with GMV growth of 24% [15][19] - Fintech services reported an 18% growth in origination, with net income growth accelerating to 15% in Q3 compared to 7% for the nine-month period [20][24] Market Data and Key Metrics Changes - E-Grocery GMV increased by 88% year-over-year, with 2.4 million purchases in Q3 [7] - E-commerce as a whole delivered robust growth, with GMV up 71% in Q3 and 95% year-on-year for the nine-month period [17] - The travel segment reported over 300% growth in package holidays in Q3, contributing to a take rate increase to 4.5% [19] Company Strategy and Development Direction - The company is focused on scaling operations in three major cities for E-Grocery and expanding into more cities next year [7][8] - The acquisition of Hepsiburada is seen as a strategic move to enter the Turkish market, which has a significant growth potential in e-commerce [28][30] - The company emphasizes a long-term view on business growth, prioritizing quality service over rapid expansion [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stable consumer and merchant environment, with expectations for continued robust growth in payments and marketplace segments [26][20] - The fourth quarter is anticipated to be the strongest quarter of the year, driven by seasonal demand [4][26] - Management highlighted the importance of maintaining a focus on quality and consumer satisfaction as key drivers for future growth [30][39] Other Important Information - The company declared a dividend of KZT850 per ADS for the period, subject to shareholder approval [26] - The Hepsiburada transaction is subject to regulatory approvals, with expectations to close in Q1 2025 [33][34] Q&A Session Summary Question: What can be added to the Hepsiburada franchise? - Management indicated that technology and experience from Kaspi will enhance Hepsiburada's operations, focusing on quality service and consumer satisfaction [34][36] Question: Will dividends be suspended during the acquisition? - Management stated that the intention is to close the transaction using cash from earnings and cash on hand, with no current discussions on suspending dividends [41] Question: How is the e-commerce market in Turkey? - Management noted that the Turkish e-commerce market is attractive, with significant growth potential and similarities to Kazakhstan [44][49] Question: What is the approach to integrating the acquisition? - Management emphasized a focus on quality and innovation, with expectations for collaborative growth between the two companies post-acquisition [60][63]