Financial Data and Key Metrics Changes - The company reported a revenue of $17.9 million for the first half of 2025, an increase of approximately 12% compared to $16.1 million in the first half of 2024 [11] - Total transaction value increased by 28% to $1.2 billion over the same period last year [10] - The company reduced its transaction fee in H1 2025 to acquire higher volumes of data, which resulted in licensing deals [10] Business Line Data and Key Metrics Changes - The company experienced a decline of approximately $4 million in the Argentinian market compared to the same period last year, reflecting a strategic decision to reallocate capital to higher-return-generating opportunities [12] - Operations in Nigeria, the oldest and largest market, continued to drive significant revenue growth [11][29] Market Data and Key Metrics Changes - Nigeria remains the largest market, with expectations of continued growth due to its status as a trading hub for essential consumer goods [35][36] - The company is expanding into new markets, including Turkey and Saudi Arabia, with significant potential revenue streams identified [21][22] Company Strategy and Development Direction - The company aims to scale its operations aggressively using a capital-efficient de-risk expansion model, focusing on joint ventures with local partners [6][7] - A target of $100 million in revenue for 2026 has been set, driven by growth in existing markets and new joint ventures [11][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of Nigeria, citing its projected status as one of the largest economies by 2075 [35] - The company views capital as a tool for accelerating value creation and plans to evaluate capital markets opportunistically to support growth [17] Other Important Information - The company simplified its balance sheet by converting a large portion of shareholder loans to equity, reducing total liabilities from over $86 million to just over $21 million [11][15] - The company has entered into a revolving trade facility of up to GBP 2 million and issued nine million shares to raise $13.5 million [15] Q&A Session Summary Question: Addressable market for JVs and strategic impact - Management discussed the attractiveness of Turkey as a market due to its historical trading significance and potential for revenue growth [20][21] Question: Transaction volume trends and distributor reactions - Management indicated that transaction volumes are expected to increase significantly in the second half of 2025, driven by reduced fees and improved data acquisition [26] Question: Performance in core geographies - Nigeria and South Africa are performing well, while Argentina has seen a strategic pullback [29] Question: Future market expectations and economic trends in Nigeria - Management highlighted Nigeria's potential as a trading hub and its growing consumer population as key factors for confidence in future revenue [35][36] Question: Joint venture partner details and revenue model - The joint venture in Turkey is with Pro Raba Limited, led by a significant figure in the Turkish industry, and the revenue model includes a minimum licensing fee and revenue sharing [58][63] Question: Break-even expectations - Management expects to reach break-even in Q2 of 2026, prioritizing investments in joint ventures [81]
RedCloud Holdings plc(RCT) - 2025 H1 - Earnings Call Transcript