Joint Stock Company Kaspi.kz(KSPI) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue increased by 21% year on year, while net income rose by 16% [7][37] - The overall performance of the company was within expectations despite some challenges [6][37] Business Line Data and Key Metrics Changes - Payments platform saw a 17% year-on-year growth in transaction volumes, with total payment volume (TPV) growing by 23% [18] - 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 growth was muted at 8% due to higher costs [31][33] Market Data and Key Metrics Changes - E-grocery business experienced a significant growth of 64% in GMV year on year, with active consumers reaching nearly 1 million [9] - The introduction of smartphone registration requirements in Kazakhstan temporarily impacted smartphone demand, reducing GMV growth by approximately 7 percentage points [23][24] Company Strategy and Development Direction - The company is focusing on expanding its fintech offerings, particularly in Turkey, with plans to invest around $300 million [16][17] - The strategy includes acquiring Rabobank to enhance fintech capabilities in Turkey [16][17] - The company aims to leverage high interest rates to grow its deposit base, which is seen as a long-term investment strategy [12][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the high interest rate environment as a challenge but also a potential future tailwind for profitability [40][41] - There is a conservative outlook for GMV growth, now expected to be between 15% to 20% due to macroeconomic uncertainties and regulatory changes [38][40] Other Important Information - The company successfully raised €650 million in Eurobonds, marking its first issuance in this market [15][16] - The introduction of a 10% tax on revenue from investments is anticipated to impact net income [41][42] Q&A Session Summary Question: Can you elaborate on the macro uncertainty in Kazakhstan? - Management indicated that lower oil prices and currency volatility contribute to macro uncertainty, but payment trends are expected to remain resilient [46][47] Question: How has the boycott in Turkey affected near-term outlook? - Management stated that the boycott does not significantly impact long-term outlook, focusing instead on product quality and consumer experience [49][50] Question: What are the implications of the smartphone registration requirement? - Management clarified that the requirement led to increased smartphone prices and a temporary drop in demand, but this is expected to normalize [58][75] Question: How does the company plan to address the boycott-driven drag in Turkey? - Management suggested that this is a question better directed to the Hepsiburada management team, as they will provide updates on their strategies [111] Question: What is the expected impact of higher deposit rates on funding costs? - Management expects an increase in funding costs by 100 to 150 basis points due to higher deposit rates [101][102]