Lesaka Technologies achieves its profitability guidance for FY 2024

Johannesburg - Lesaka Technologies, Inc. has released its results for the year ended 30 June 2024, reporting increased revenue for the year by 11% to $564.2m (ZAR10.6bn). The company reported that its net loss improved 48% in the current year from $35.1m (ZAR629.2m) in FY 2023 to $17.4m (ZAR 326.1m). Its operating income for the year increased from a loss of $15.3m (ZAR275.3m) in year 2023, to a positive $3.6m (ZAR67.3m).

Lusaka Technologies said its fundamental earnings per share (a non-GAAP measure) of $0.06 (R1.06), improved ZAR3.72, compared to a fundamental loss per share of $0.15 (R2.66) for the year 2023. Its Merchant Division revenue increased 12% to $498.3m (ZAR 9.3bn) with its Segment Adjusted EBITDA having increased 4% to $33.4m (R624.1m).

Chief Executive Officer Southern Africa Lincoln Mali said: “I am particularly pleased with the Consumer Division’s performance. Our teams have worked hard to turn it into an important profit and cash flow contributor for the Group, demonstrated by the 94% growth in Segment Adjusted EBITDA this quarter. We are entering an exciting period of growth for Lesaka, integrating the Adumo and Touchsides acquisitions with our existing fintech solutions as we strive to empower Southern African consumers and merchants to fulfil their potential.”

The Group said its full year 2024 revenue includes approximately R1.8bn of revenue recognized on a gross basis for Easyload prepaid airtime vouchers sold, and if this revenue is recognised on a gross basis in full year 2025, it would be R2.4bn.

It added that it is currently engaging its funders to provide the Consumer Division with a specific debt facility to be utilized to fund its Consumer lending book, and this will result in the inclusion of the related interest expense charges in Group Adjusted EBITDA. Its FY 2025 Q1 and FY2025 Group Adjusted EBITDA guidance has been prepared on the basis that the facility is in place with effect from the commencement of Q1 FY 2025.

Fundamental net earnings (loss) and earnings (loss) per share is GAAP net loss and loss per share adjusted for the amortization of acquisition-related intangible assets (net of deferred taxes), stock-based compensation charges, and unusual non-recurring items, including costs related to acquisitions and transactions consummated or ultimately not pursued.

Fundamental net earnings (loss) and earnings (loss) per share for fiscal 2024 also included an impairment loss related to an equity-accounted investment, unrealized currency loss related to its non-core business which it is in the process of winding down and a reversal of allowance for doubtful loan receivable, it said. The Group also explained that its fundamental net loss and loss per share for fiscal 2023 also included change in tax rate, a net gain on disposal of equity-accounted investments, impairment losses related to an equity-accounted investment and an adjustment for an unrealized currency loss related to our non-core business which we are in the process of winding down.

Lesaka Technologies explained that its management believes that the Group Adjusted EBITDA, fundamental net earnings (loss) and fundamental earnings (loss) per share metrics enhance its own evaluation, as well as an investor’s understanding, of its financial performance.

Lesaka Chairman Ali Mazanderani said: “We continue to materially improve the profitability of Lesaka achieving Group Adjusted EBITDA of R691m in 2024, up from R445m in 2023 and a significant positive transformation compared to a Group Adjusted EBITDA loss of R328m in 2022. We have carried this momentum into 2025 and are providing a guidance range of R900m to R1bn. We have established ourselves as the leading independent fintech in Southern Africa with significant room for increased growth and profitability over the coming years.”

Lesaka Technologies, (Lesaka™) is a South African Fintech company driven by a purpose to provide financial services and software to Southern Africa’s underserviced consumers (B2C) and merchants (B2B), improving people’s lives and increasing financial inclusion in the markets in which we operate. The company offers a wide range of solutions including transactional accounts (banking), lending, insurance, cash management solutions, card acceptance, supplier payments, software services and bill payments.

By providing a full-service fintech platform in its connected ecosystem, it facilitates the digitization of commerce in its markets. It has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK).