Leading South African Fintech Lesaka Technologies Completes Turnaround as it Champions Financial Inclusion Across Informal Markets

About this update from Lesaka Technologies, Inc.

[{"type":"text","content":" JOHANNESBURG, South Africa--(BUSINESS WIRE)--\nLesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released its results for the third quarter ended March 31, 2023 (“Q3 2023”) as the turnaround in the Group’s Consumer Division gathers momentum and the Merchant Division continues to outperform.\n\n\nPerformance highlights for Q3 2023:\n\n\n\nRevenue of R2.4 billion, compared to R549.8 million in Q3 2022, an increase of 337% due to the inclusion and continued outperformance of the Connect Group and momentum in the successful turnaround of the Consumer Division.\n\n\n\nNet loss attributable to Lesaka of R104.4 million, compared to R51.9 million in Q3 2022. Operating income (loss) before PPA amortization and net interest, a non-GAAP measure and reconciled below, was income of R34.0 million, compared to a loss R146.8 million in Q3 2022, and excludes amortization of acquired intangible assets R67.3 million, compared with R0.3 million in Q3 2022.\n\n\n\nAdjusted EBITDA of R137.1 million, a 221% improvement compared to the Q3 2022 loss of R112.7 million.\n\n\n\nContinued operating improvement demonstrated by further narrowing the operating loss to R33.2 million, representing an 77%(1) improvement from an operating loss of R147.1 million reported for Q3 2022.\n\n\n\nContinued outperformance from the Merchant Division, delivering Adjusted EBITDA of R148.7 million.\n\n\n\nSuccessful turnaround of the Consumer Division delivering Adjusted EBITDA of R29.6 million, compared to a loss of R13.5 million in Q3 2022.\n\n\n\nPositive net cash generated by operating activities of R133 million, compared to an outflow of R81.3 million in Q3 2022.\n\n\n\n\n\nNote 1 – before reorganisation costs of R91.4 million in Q3 2022\n\n\n\n\n\n\n\nLesaka Technologies has leveraged disruptive technologies to build a unique fintech platform which meets the needs of both merchants and consumers operating in informal and formal markets. More than 72,000 merchants use the Group’s cash management solutions, bill payment technologies, value-added services, business funding and card-acquiring solutions and 1.3 million consumers access Lesaka’s unsecured credit, transactional banking and micro-insurance products and services.\n\n\nLesaka's strong third quarter results were driven by the transformational acquisition and outperformance of the Connect Group in the Merch...

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