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

Financial Data and Key Metrics Changes - Revenue increased by 21% year over year, while net income rose by 16% [7][37] - The overall performance of the company was within expectations, with strong growth in payments and marketplace segments [6][7] Business Line Data and Key Metrics Changes - Payments segment saw a 17% growth in transaction volumes and a 16% increase in revenue, with net income growing by 21% [18][19] - Marketplace GMV grew by 20% year over year, with revenue up 33% [21][27] - E-grocery business experienced a significant growth of 64% in GMV and 66% in purchases [9] - Fintech origination volumes grew by 18%, with revenue increasing by 8% and net income by 8% [7][31] Market Data and Key Metrics Changes - The introduction of smartphone registration requirements in Kazakhstan temporarily impacted smartphone demand, reducing GMV growth by approximately 7 percentage points [22][23] - The high interest rate environment continues to affect consumer behavior and demand for products [8][12] Company Strategy and Development Direction - The company is focusing on expanding its e-grocery business and entering new cities to support growth [9][10] - A strategy to acquire Rabobank in Turkey aims to enhance fintech offerings and expand into the Turkish market [16][17] - The company plans to invest approximately $300 million in its fintech strategy in Turkey [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of payment trends despite macroeconomic uncertainties [46][47] - The guidance for GMV growth was adjusted to 15% to 20% due to the impact of new smartphone regulations and macroeconomic factors [38][40] - Management anticipates that high interest rates will eventually become a tailwind for the business in the medium term [40][42] 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 expected to impact net income by approximately 200 basis points [42] 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 [46][47] Question: How has the boycott in Turkey affected your near-term outlook? - Management indicated that the boycott does not significantly change the long-term outlook, focusing instead on product quality and consumer experience [49][50] Question: What are the impacts of the smartphone registration requirement? - Management clarified that the requirement led to increased smartphone prices and a temporary drop in demand, which is expected to normalize in the second half of the year [58][60] Question: How do you plan to address the boycott-driven drag in Turkey? - Management suggested that the response would be better directed towards the Hepsiburada management team, as they will provide updates on their strategies [110] Question: What is the expected impact of the 10% tax on revenue from government securities? - Management confirmed that this tax is expected to remain in place and will have a marginal impact on earnings [64][66]