Financial Data and Key Metrics Changes - Group revenue decreased by 2% to 2.6 billion Rand, driven by a 5% decrease in merchant revenue due to changes in airtime sales mix [36] - Group net revenue increased by 42% year on year, with merchant net revenue up 68% primarily due to the inclusion of Adumo [37] - Group adjusted EBITDA grew by 26% to 212 million Rand, exceeding guidance [39] Business Line Data and Key Metrics Changes - Merchant division net revenue increased by 68% to 854 million Rand, with adjusted EBITDA up 32% to 185 million Rand [72] - Consumer division revenue increased by 31% to 411 million Rand, with adjusted EBITDA growing 61% to 77 million Rand [88] - Enterprise division net revenue retracted by 29% as the division focuses on building a profitable business [38] Market Data and Key Metrics Changes - The addressable market in South Africa is estimated to be over 12 billion in five years [9] - The company holds a 7% market share in the merchant division and 6.5% in the consumer market, with plans to increase these shares [11][17] Company Strategy and Development Direction - The company aims to differentiate itself by being customer-led rather than product-led, addressing various customer needs [11] - The strategy includes organic and inorganic growth through acquisitions, with Adumo being a significant addition [26][30] - The company is focused on expanding its product offerings and entering underserved market niches [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable growth in the consumer division, particularly in expanding the customer base [116] - The company reaffirmed its revenue guidance of 10 billion to 11 billion Rand for FY2025, with adjusted EBITDA guidance of 900 million to 1 billion Rand [107] - Management highlighted the importance of regulatory changes and digitization in driving growth opportunities [15] Other Important Information - The acquisition of Adumo has led to a significant increase in goodwill and intangible assets on the balance sheet [27] - The company is undertaking a comprehensive refinance of its debt facilities to optimize its capital structure [32] - MobiKwik's investment was written down by 615 million Rand, contributing to a net loss of 584 million Rand for the period [34][42] Q&A Session Summary Question: Discussion on FY2025 guidance including Recharger - Management clarified that the FY2025 EBITDA guidance now includes Recharger, reflecting the integration of this acquisition into the overall strategy [113][114] Question: Sustainability of consumer growth performance - Management indicated that the consumer growth is sustainable, with immediate opportunities to grow the customer base further [116]
Lesaka(LSAK) - 2025 Q2 - Earnings Call Transcript