Lesaka Increases Revenue 9% for the Fourth Quarter, Exceeding the Upper End of its Revenue Guidance

About this update from Lesaka Technologies, Inc.

[{"type":"text","content":" JOHANNESBURG--(BUSINESS WIRE)--\nLesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released its results for the fourth quarter (“Q4 2023”) and full year (“FY 2023”) ended June 30, 2023.\n\n\nPerformance highlights for Q4 2023:\n\n\n\nRevenue of ZAR 2.5 billion ($133.1 million) in Q4 2023, compared to ZAR 1.9 billion ($121.8 million) for the quarter ended June 30, 2022 (“Q4 2022”), with the 9% increase attributable to inclusion of the Connect Group for the full period, excellent growth in the Merchant Division, driven by the Connect and Kazang businesses, as well as the successful turnaround of the Consumer Division. On a constant currency basis revenue grew 32%.\n\n\n\nThe significant financial turnaround is demonstrated by a narrowing of the net loss to ZAR 223.2 million ($11.9 million) in Q4 2023, despite also including a non-cash impairment charge related to the pre-existing Merchant Division of ZAR 131.9 million ($7.0 million) and a non-cash PPA amortization charge of ZAR 67.3 million ($3.6 million). This compares to a net loss of ZAR 235.8 million ($15.1 million) in Q4 2022 and represents a 21% improvement. Excluding the impact of the non-cash impairment charge, Lesaka would have reported a net loss of ZAR 91.2 million ($4.9 million), representing a 68% improvement from the comparable prior year period.\n\n\n\nOperating loss was ZAR 124.3 million ($6.6 million) in Q4 2023, inclusive of a ZAR 131.9 million ($7.0 million) non-cash impairment charge and a ZAR 67.3 million ($3.6 million) non-cash PPA amortization charge. This is a significant improvement compared to the operating loss of ZAR 157.5 million ($10.1 million) in Q4 2022, inclusive of a PPA amortization charge ZAR 57.6 million ($3.7 million).\n\n\n\nGroup Adjusted EBITDA of ZAR 158.3 million ($8.4million) represents an improvement of 115% compared to the Q4 2022 Group Adjusted EBITDA of ZAR 60.6 million ($3.9 million). On a constant currency basis Group Adjusted EBITDA increased by 161%.\n\n\n\nExcellent performance from Merchant, delivering Segment Adjusted EBITDA of ZAR 154.2 million ($8.2 million) in Q4 2023. Outlook remains positive as Merchant extends its footprint across Southern Africa’s largely untapped informal market.\n\n\n\nThe Consumer Division reported a third consecutive quarter of profitability delivering Segment Adjusted EBITDA of ZAR 46.5 mil...

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