Adjusting for the amortization of acquired intangibles of ZAR 67 million and for the impairment loss of ZAR 132 million, operating income for the fourth quarter would be ZAR 75 million, which compares to ZAR 33 million operating income in the third quarter, a quarter-on-quarter increase of greater than 100%. Fundamental loss per share for the quarter of ZAR 0.76, which excludes non-operating items, improved 48% compared to the fourth quarter of FY ’22. In management’s view, this is the appropriate earnings per share measure, given the adjustment for one-off, non-repeatable items and PPA amortization, which is a non-cash item. Execution over the past 18 months has been transformational for Lesaka’s financial performance in FY 2023, with consolidated group revenue of ZAR 9.4 billion for the year, exceeding the upper end of our revenue guidance, which was ZAR 8.7 billion to ZAR 9.3 billion.
The Group’s operating loss narrowing from a loss of ZAR 611 million in FY ’22 to a loss of ZAR 275 million for FY ’23. Depreciation and amortization of ZAR 425 million for FY ’23, includes ZAR 269 million rand related to the amortization of acquired intangibles, compared to ZAR 58 million included in the ZAR 115 million for FY ’22. Net interest expense increased from ZAR 57 million in FY ’22 to ZAR 300 million in FY ’23, predominantly due to the higher debt position given part of our Connect acquisition in April 2022 was funded with debt. The interest expense was also impacted by the increase in the repo rate in South Africa in FY ’23. Net loss before tax reported narrowed to ZAR 579 million for FY 2023. Adjusting for the amortization of acquired intangibles and for the impairment loss, the net loss would have narrowed to ZAR 184 million, compared to a net loss of ZAR 609 million for FY ’22, representing a ZAR 425 million improvement in the net loss before tax.
Fundamental loss per share for the year of ZAR 2 and ZAR 0.66, which excludes non-operating items, improved 64% compared to FY ’22. Unpacking the components of operating loss, we have delivered in excess of ZAR 670 million improvement to operating income over the year, if adjusting for the amortization of acquired intangibles of ZAR 269 million and for the impairment loss of ZAR 126 million, which in aggregate accounts for approximately ZAR 400 million non-cash charge to the income statement. For the quarter, we have delivered ZAR 175 million improvement to operating income, after adjusting for the amortization of acquired intangibles of ZAR 67 million and the impairment loss of ZAR 132 million, which together account for approximately ZAR 200 million non-cash charge to the statement of operations in Q4 2023.
Consolidated group revenue of ZAR 9.4 billion for the year exceeded the upper end of our revenue guidance, which was ZAR 8.7 billion to ZAR 9.3 billion. Over the last 12 months, the business delivered a ZAR 766 million turnaround in group-adjusted EBITDA, reporting ZAR 498 million for FY ’23, which compares to a loss of ZAR 268 million reported in FY ’22. This result is within the mid-range of our market guidance for group-adjusted EBITDA, which was ZAR 480 million to ZAR 525 million. At a Divisional level, the Merchant Division reported a segment-adjusted EBITDA of ZAR 602 million for the financial year to June 2023, which came in above market guidance of ZAR 595 million. Pre-existing Merchant Business contributed approximately 1% of the Merchant Division segment-adjusted EBITDA.
The Consumer Division, including the ATM business, contributed ZAR 59 million segment-adjusted EBITDA for the financial year June 2023, which included three consecutive positive quarters of segment-adjusted EBITDA. The Consumer Division reported a ZAR 388 million turnaround compared to the ZAR 329 million segment-adjusted EBITDA loss in the financial year June 2022. For the quarter, the Merchant Division grew revenues by 17% on a like-for-like basis to ZAR 2.2 billion, driven by the Connect Group revenues, which grew by more than 25% for the year. The Consumer Division reported revenue growth of 27% compared to Q4 2022 and 9% from Q3 2023, achieved off a reduced cost base. It clearly demonstrates consistent execution in achieving our financial turnaround.
The Merchant Division reported a segment-adjusted EBITDA of ZAR 154 million compared to ZAR 127 million reported in Q4 2022 on a like-for-like basis and ZAR 148 million in Q3. The relative contribution to the merchant revenue and EBITDA from our pre-existing Merchant Division has declined, as the Connect Group of businesses continue to grow. The Consumer Division, including the ATM business, contributed ZAR 59 million segment-adjusted EBITDA for the financial year June 2023, which included three consecutive positive quarters of segment-adjusted EBITDA. I have addressed the financial turnaround at an operating income and income-before-tax level. In addition, Lesaka’s financial turnaround is also evident in our quarterly progress on a revenue and group-adjusted basis, demonstrating continued momentum in executing on our turnaround plan successfully over the past eight quarters.
Overall, we are hugely encouraged by the continued improvement in our quarterly performance, with each quarter this year reflecting an increase in revenue and EBITDA despite the challenging operating environment during the 12-month period. Both the Merchant and the Consumer Divisions are delivering robust quarterly growth, and we have been deliberate in containing our group cost base. Fundamental loss per share for the quarter of ZAR 0.76 per share, which excludes non-operating items, improved 48% compared to fourth quarter FY ’22. From a cash flow perspective, we saw continued momentum in achieving positive net cash provided by operating activities of ZAR 183 million in Q4 2023, compared to the net cash used by operating activities of ZAR 104 million in Q4 2022.
Looking further at how our net cash utilized in operating activities per cash flow statement compares with cash generated from the business operations, we generated ZAR 197 million operating cash flow before interest paid, tax paid, working capital related to items and movement in our loan book funding. We define this as cash generated from business operations, and consider it an appropriate indicator of our conversion of EBITDA to cash. In Q3 2023, we generated ZAR 138 million, an increase of ZAR 55 million in three months. Bulk VAS purchases are short-term investments usually realized within three to six months and funded through short-term funding arrangements. For us, this is opportunistic in nature, is driven by the benefits of scale, adding further profitability to our VAS business.
