Lesaka Reports Third Quarter 2023 Results – Continued improvement in financial performance further evidences successful turnaround

About this update from Lesaka Technologies, Inc.

[{"type":"text","content":"JOHANNESBURG, South Africa, May 09, 2023 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the third quarter ended March 31, 2023 (“Q3 2023”). Performance Highlights for Q3 2023: Revenue of $134.0 million (ZAR 2.4 billion)1 in Q3 2023, compared to $35.2 million (ZAR 549.8 million)1 for the quarter ended March 31, 2022 (“Q3 2022”), with the 381% increase largely as a result of the inclusion and continued outperformance of the Connect Group (including Kazang) and momentum in the successful turnaround of the Consumer Division.Net loss attributable to Lesaka of $5.8 million (ZAR 104.4 million)1 in Q3 2023, compared to $3.3 million (ZAR 51.9 million)1 in Q3 2022. Operating income (loss) before PPA amortization and net interest, a non-GAAP measure and reconciled in Attachment B, was income of $1.9 million (ZAR 34.0 million)1 in Q3 2023, compared to a loss of $9.4 million (ZAR 146.8 million)1 in Q3 2022, and excludes amortization of acquired intangible assets of $3.7 million (ZAR 67.3 million) in Q3 2023, compared with $0.015 million (ZAR 0.3 million) in Q3 2022.Group Adjusted EBITDA of $7.6 million (ZAR 137.1 million)1, within guidance, and a significant improvement compared to the Q3 2022 reported Group Adjusted EBITDA loss of $7.2 million (ZAR 112.7 million)1.Continued operating improvement demonstrated by further narrowing the operating loss to $1.9 million (ZAR 33.2 million)1 in Q3 2023, representing an 81% improvement from an operating loss of $9.4 million (ZAR 147.1 million)1 reported for Q3 2022.Continued outperformance from the Merchant Division, exceeding guidance and delivering Segment Adjusted EBITDA of $8.3 million (ZAR 148.7 million)1 in Q3 2023. Growth and momentum are expected to continue as the Merchant Division continues to extend its footprint across South Africa’s widely untapped informal market.Successful turnaround of the Consumer Division from a significant loss-making position into a positive Segment Adjusted EBITDA contributor to the Group. The Consumer Division reported a second consecutive quarter of profitability delivering Segment Adjusted EBITDA of $1.6 million (ZAR 29.6 million)1 in Q3 2023, compared to a loss, before the Q3 2022 reorganization costs, of $0.8 million (ZAR 13.5 million) 1 in Q3 2022. With the divisional turnaround largely complete, the Consum...

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