Lesaka Q3 2024 Results: Lesaka continues to deliver improved profitability

About this update from Lesaka Technologies, Inc.

[{"type":"text","content":"JOHANNESBURG, South Africa, May 08, 2024 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the third quarter ended March 31, 2024 (“Q3 2024”). Performance Highlights for Q3 2024: Revenue of $138.2 million (ZAR 2.6 billion)1 in Q3 2024, compared to $134.0 million (ZAR 2.4 billion)1 for the third quarter ended March 31, 2023 (“Q3 2023”), an increase of 9% in South African Rand (“ZAR”).Operating income of $0.8 million (ZAR 15.0 million) for the quarter, compared to an operating loss of $1.9 million (ZAR 33.2 million) in Q3 2023.Net loss reduced to $4.0 million (ZAR 76.4 million)1 compared to a $5.8 million (ZAR 104.4 million)1 in Q3 2023, representing a 27% improvement in ZAR. GAAP loss per share improved 30% to $0.06 (ZAR R1.19)1.Group Adjusted EBITDA2 (a non-GAAP measure) increased to $9.7 million (ZAR 183.3 million)1 for the quarter, up 47% in ZAR compared to $7.0 million (ZAR 124.6 million)1 and exceeded the upper end of Q3 2024 guidance.Fundamental earnings per share (a non-GAAP measure), positive for a second successive quarter, increased to $0.02 (ZAR 0.45)1 compared to a fundamental loss per share of $0.02 (ZAR 0.35)1 in Q3 2023.The Merchant Division reported revenue of $121.0 million (R2.3 billion), an increase of 8% in ZAR, compared to $118.1 million (ZAR 2.1 billion). Segment Adjusted EBITDA increased to $8.4 million (ZAR 158.5 million) for the quarter, a 7% increase in ZAR compared to Q3 2023.The Consumer Division reported revenue of $17.9 million (ZAR 338.2 million), an increase of 19% year-on-year in ZAR. Segment Adjusted EBITDA of $4.4 million (ZAR 82.3 million)1 in Q3 2024, a 178% increase in ZAR, compared to $1.6 million (ZAR 29.6 million) in Q3 2023.The Net debt to Group Adjusted EBITDA2 ratio improved to 2.6 times compared to 2.9 times last quarter (Q2 2024) and 4.2 times in Q3 2023.Revenue guidance for fiscal 2024 is re-affirmed and Group Adjusted EBITDA guidance for fiscal 2024 has been raised3 to between ZAR 685 million and ZAR 705 million. Lesaka Group Chairman Ali Mazanderani said, “I am pleased to report a continuation of our strong and consistent performance. Adjusted EBITDA for the quarter increased to R183 million, 47% growth year-on-year, and Operating Income improved from a loss of R33 million in Q3 2023 to a profit R15 million this quarter. Our net debt ...

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