Joint Stock Company Kaspi.kz(US:KSPI)2025-05-12 13:00Financial Data and Key Metrics Changes - Company reported a revenue increase of 21% year over year and a net income increase of 16% [6][38] - Overall performance was within expectations despite challenges in GMV due to regulatory changes [6][7] Business Line Data and Key Metrics Changes - Payments platform saw a 16% revenue growth and a 21% net income growth, with transaction volumes up 17% year on year [18][20] - Marketplace GMV grew by 20% year on year, with e-commerce GMV increasing by 23% [21][22] - Fintech origination volumes grew by 18%, but net income was muted at 8% due to increased cost of risk [31][33] Market Data and Key Metrics Changes - E-grocery business experienced a significant growth of 64% in GMV year over year, with active consumers reaching nearly 1 million [8][9] - Smartphone sales were impacted by new registration requirements, leading to a temporary decline in demand [24][25] Company Strategy and Development Direction - Company is focusing on expanding its e-grocery business and entering new cities to support growth [9][10] - The acquisition of Rabobank is aimed at enhancing fintech capabilities in Turkey, with an investment of approximately $300 million planned [16][17] Management Comments on Operating Environment and Future Outlook - Management highlighted macroeconomic uncertainties, including high interest rates and potential impacts on consumer spending [50][62] - Despite short-term challenges, the outlook for the year remains robust, with expectations of normalization in smartphone demand [39][60] Other Important Information - The company raised Eurobonds amounting to $650 million at a 6.25% interest rate, marking its first issuance [15][16] - A 10% tax on revenue from investments is expected to be introduced, which could impact net income [42][43] Q&A Session Summary Question: Can you expand on the macro uncertainty in Kazakhstan? - Management noted that lower oil prices and currency volatility contribute to macroeconomic uncertainty, but payment trends are expected to remain resilient [49][50] Question: How has the boycott in Turkey affected your outlook? - Management stated that the boycott does not change the long-term outlook but may impact near-term integration efforts [52] Question: What are the implications of the smartphone registration requirements? - Management clarified that the new regulations led to increased prices and a temporary drop in demand, but normalization is expected in the second half of the year [58][60] Question: How does the deposit cost compare with other banks? - Management indicated that their deposit rates are competitive but not the highest in the market, focusing on consumer experience [124][125] Question: What is the strategy for the Rabobank acquisition? - The acquisition aims to enhance product development and meet capital requirements for operating a licensed bank in Turkey [88][90]