Lesaka Technologies, Inc. (NASDAQ:LSAK) Q1 2024 Earnings Call Transcript

Steven Heilbron: Yes. So I think let me start off by saying that essentially, the momentum and numbers that we have disclosed support the guidance that Chris has given in terms of Q2 and FY ’24 guidance. So we have factored all of that into the numbers that we’ve presented. I’m hoping, and we are hoping that we can bring Kazang Pay Advance back to the table. We would like to try and do that in Q3 or early Q4. The impact of that from a profitability perspective, though, I think will be enjoyed more in FY ’25. So as we mentioned earlier, we pulled the product. It’s more or less P&L neutral over the period. We — as I mentioned in our presentation, we made a provision on a conservative basis in Q1 of ZAR 3 million, which affected the Merchant segment adjusted EBITDA. We believe that we are adequately provided at the end of that quarter and we look to — we’re now tweaking the product and we’ll bring it back.

Operator: Great. And our final question today. Can you offer an update on MobiKwik performance and its listing plans?

Chris Meyer: Yes, we’ll do. I’m happy to take that. Maybe quick. So I think overall performance in the business continues to be good. They have reported positive EBITDA for, I think, at least 2 consecutive quarters and the cash generative. So the focus in the MobiKwik business, when we talk to management and founders is building a track record of EBITDA positivity and cash generation to put them in a position to list the business. We spoke to them recently. They reaffirmed to us their intention is to look to IPO the business. The expected range that we understand it is in the second half of calendar 2024. So somewhere after June, probably around September, that is their focus. And so we remain positive in terms of the overall — our overall exposure to MobiKwik and the direction of travel of the business.

Operator: Well, great. Thank you, everyone. We’ve hit our hour mark. So we’re going to wrap it here. And a reminder to everyone after you disconnect, there will be a replay of this webcast on the Lesaka Investor website. If there were any remaining questions, someone from the IR team will reach out to you shortly to answer them. We thank you, everyone, for your participation.