Lesaka Reports FY23 Q2 Results Outperforming Upper End of Guidance
February 07 2023 - 4:05PM
Business Wire
Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today
released results for the second quarter ended December 31, 2022
(“Q2 2023”).
Successful execution against a carefully crafted transformation
strategy
Performance highlights for Q2 2023:
- Group Adjusted EBITDA of $7.4 million (ZAR 130.4 million)
exceeds the upper end of guidance of ZAR 123 million in Q2 2023 by
6%. This represents a 77% increase compared to the prior quarter
(Q1 2023: $4.2 million; ZAR 71.9 million) and significant
improvement compared to Q2 2022 when Lesaka reported a Group
Adjusted EBITDA loss of $5.4 million (ZAR 83.6 million).
- Revenue of $136.1 million (ZAR 2.4 billion)1 in Q2 2023,
compared to $31.1 million (ZAR 478.5 million)1 for the quarter
ended December 31, 2021 (“Q2 2022”), exceeding the upper end of
guidance by 4%, driven predominantly by strong outperformance in
the Merchant Division.
- Major milestone in achieving positive net cash provided by
operating activities of $3.4 million (ZAR 59.9 million) in Q2 2023,
compared to an outflow of $13.8 million (ZAR 212.0 million) in Q2
2022.
- Lesaka re-affirms previous guidance provided for fiscal
2023.
Lesaka Group CEO Chris Meyer said: “We are proud of our
performance in the second quarter of our financial year. We have
made significant progress in our transformation strategy, a process
that commenced in earnest at the beginning of fiscal 2022. The
Merchant Division has delivered excellent growth across all
products, particularly in our card acquiring and credit businesses,
in particular Kazang Pay and Kazang Advance. This result was
achieved despite a challenging operating environment with increased
loadshedding impacting our MSME customer’s ability to operate. The
integration of the Connect Group has expanded our Merchant business
significantly and continues to create new opportunities for the
growth of our ecosystem in Southern Africa.
“We are also delighted with the performance of our Consumer
Division where we have achieved our goal of returning the business
to profitability at a Segment Adjusted EBITDA level, providing
tangible evidence of the turnaround in this segment of our
business.
“We are seeing excellent momentum across our group, driven by
clear secular trends underpinning the themes of financial
inclusion, cash management and digitization, which is core to our
value proposition to merchants and consumers in Southern
Africa.”
Lesaka CEO Southern Africa Lincoln Mali said: “This
quarter is a watershed moment for Lesaka. In reflecting on the work
of the last 18 months, where we were very clear on how we planned
to return the Consumer business to profitability, we view this set
of results as testament to the successful implementation of a
rigorous plan that was based on the complete transformation and
optimization of our branch and distribution footprint, coupled with
a clear focus on delivering financial inclusion to our customers
across Southern Africa.”
1
Translated at an average exchange
rate of ZAR 17.52 to $1 for Q2 2023, ZAR 15.38 to $1 for Q2 2022
and ZAR 17.13 to $1 for Q1 2023. The ZAR weakened 14% against the
U.S. dollar during Q2 2023 when compared to Q2 2022 and 2% when
compared to the prior sequential quarter (Q1 2023).
Full release and webcast details at Investor Relations | Lesaka
Technologies.
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version on businesswire.com: https://www.businesswire.com/news/home/20230207006110/en/
Investor Relations Contact: Phillipe Welthagen Email:
phillipe.welthagen@lesakatech.com Mobile: +27 84 512 5393
FNK IR: Rob Fink / Matt Chesler, CFA Email:
lsak@fnkir.com
Media Relations Contact: Janine Bester Gertzen Email:
Janine@thenielsennetwork.com
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