Recent LSAK transcripts
Associated LSAK filings
Dhruv Chopra | Head of IR |
Herman Kotzé | CEO |
Alex Smith | CFO |
Allen Klee | Maxim Group |
Tom Zeifang | Lucrum |
Good day, ladies and gentlemen, and welcome to the Net 1 Quarter Four Earnings Conference Call. All participants will be listen-only mode. [Operator Instructions] Please note that this call is being recorded. I'll now hand the conference over to Mr. Dhruv Chopra. sir. ahead, go Please
Welcome on fourth our the our Kotzé; Irene. call. CEO, XXXX With and Smith. Alex me call CFO, to you, quarter our earnings Herman Thank today is
Investor financial release press available on and supplementary Relations Our presentation ir.netX.com. website, a for are - our
or to Form weeks expect a couple XX-K We in file of our sooner.
risks As statements, cautionary you the ask at the uncertainties and language release during in and to call, press will we forward-looking this reminder, with I a be forward-looking our contained statements. making associated look regarding
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We will following remarks. have prepared session a Q&A our
So over to turn Herman. the call with me that, let
Thank and to shareholders. our of good you, morning, all afternoon Good Dhruv.
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Thank operating the trends of quarter discuss results and I for compared XXXX key to segments will year a within our you, fourth Herman. ago. the
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and segment business primarily lower revenue services, and XX% other of in down applied to on the growth fewer intersegment X% operating technology criteria decreased Our applied of Financial fees down constant-currency fewer basis. dollar in by value-added with financial compared fourth revenues, offset $XX.X million our a due XXXX account revenue fourth prepaid as technology income charged in terms customers. we and was U.S. and partially monthly to and lending and quarter our insurance the tightened airtime quarter in lending volumes inclusion inclusion XXXX, products and
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Our fourth XXXX quarter $XX.X expense million to tax $XX.X was XXXX. million compared in
was nondeductible a XXXX interest CPS, long-term the result for XX% statutory a remeasurement small expenditure loss, DNI South loss, of incurred and and African in the at as much rate tax than impairment transaction-related fiscal South expenses, our nondeductible losses African rate was higher effective Our including facility.
million XXXX doubtful $X effective the including impacted by finance million a adversely XX% to to highlight rate loss, and loan approximately been noncash our $XX loss tax remeasurement be that expect the impairment XX%. We of allowance XXXX million has DNI I'd for $X our a for events, number of receivable. rate like effective
Excluding be XX%. our effective these would items, rate approximately
million of X.X of of the the fourth was actual middle of million count quarter March the our versus lower due share in our XX QX quarter XX.X Our shares. to with XXXX weighted weighted shares was fourth repurchase count XXXX, the share share XXXX. Compared for XX.X million of count
Turning to our guidance.
contributors. during guidance process is prudent volatility the transition quarter issue it of our SASSA first of the more believe on focusing the Given predictable to profit XXXX, we
expect XXXX. therefore, assumptions per comments. fiscal on For into net earnings following per $X.XX the Low which contribution CPS in share we income and XXXX, based of fundamental is from share,
million EPE active X.X number to accounts expect average year with of for be on to around ARPU the those the accounts We be flat year. and on the last
for X now million and previously months, goal EPE by next with confusion XX accounts feel warrants SAPO in We of conservatism SASSA long-term have we the indicated caused the current updates but quarterly.
synergies we South potential expect shares in expect the rate second fiscal XX.XX With DNI, XX.X Korea of full to a in $X, XX%. fiscal we see significant results growth of our year of And we constant half currency although XXXX results, should improvements see prepared to basis with consistent approximately we with year. businesses. a respect ZAR reflecting tax base although the on other guidance of XXXX, and million our for be the has XX% the been fiscal
through SASSA actions September, under on review have more we which could provided reflects to Additionally, current would to transpire, include, operating and to competitive current with to service number at that expect quarter one, would like be are we would is for through a undertaken reduce are the for September of our to but the currently were XXXX, a uncertainty to expect of could of Two, guidance. contract various environment EPE loss. normalized results. pricing there by end unilateral performed limited which XX, the we that us following XXXX account transition regarding exist. accounts players through would the but our -- events positively a highlight their not guidance cause impact dialogue key first CPS net SASSA paid process the XXXX our the Constructive positive the EPE These
guidance, our expect see EPS $X.XX and to $X.XX between For benefit. million over every we incremental EPE X.X accounts, retain we
Cell offering. our in and factors XXXX transition lastly, all given not long-term the outlined Also addition expect income and drive is year likely we C of We is biggest to fiscal actions initiatives, for fiscal also customers accounts And we months. Our Q&A. up to XXXX, it target be EPE to our growth new call in we've this DNI target data has our in pushing the the space. fiscal to our can of expect the to various in open to now out by with changed company's earlier initiatives history, investments our bottom million-plus be year this XX X the result months means due of X EPE higher noting worth and
first from Klee Our Allen is Instructions] of Maxim question Group. [Operator
Good morning.
might so you're in customers when could Can And getting churn processing about what mentioned reallocate potential EPE. from XXX,XXX most the much. getting quarter? rates hear people the for a given And you risk, on that CPS proactively the that and when and you like that, SASSA sounded underpaid earnings talk for mitigate then ends they that higher - can EPE do customers of XXX,XXX customers? the about on you Thank you to that? sounded contract can on that? to then you’re timing you expensive And positive try the were also create ability maybe at that quantify questions Some those the now, of then the a it like the loss - to infrastructure
Thanks, Alan.
them. if but remind on of up questions, list have skipped I think your I of a I've got please me, some
at numbers. provided end those of are the contract they, we review, out In to period. the terms the to a subject final They and of the obviously, split CPS to don't need loss, be court
we the the were. So what publish as losses exactly is done, that of results as soon will
not continue. provide the to will court On timing question, it your exactly response. when expect know We do with we us
the the some guidance in filed to with We matter. to addressed to application Chief urgent to correspondents Justice us have this an also We've ask them please provide court.
being we understand, these But National recommendation time agreeing court of a no from terms do Treasury, made. the simply kind was considering set heard. the As in recommendation of court that of land, as have far and the there the highest approving it's that as we matter in applications are is the how
that as I that system. this of we part assets become said contract, the about with spoke the -- interoperable we the what of the deployed these or Second, we've part we reapplication when form fully are enabled about already vehicles just of talking these banking return to
those that so these - initiative of is our card the specifically, EasyPay South now the can, to cash to they reutilize the African technology we've any we will certainly with the vehicles be are part biometric the deployed acquiring access in lot will considering dispensers bank But readers, strategy, deployed form Everywhere vehicles network. And that to as X.X and and will these part it form of a intention redeployed years that important basically our of allow the an old. the which any on extent of
Net So on to banks. that customers. population of being last any not is of mission of in system customers our users mile access the can provide terms dependent from to the be the the X They one
hope use infrastructure. to that of And so we the maximize
grants have that these that will receive the old the cards, SASSA customers view, necessary EasyPay banking legal people these But From different regulations big those crisis by big, the customers taking and actions our there into messages believe we to the to on receive that who there them to contrary got will they XXX,XXX state. apparently what potential with September that regulations and for spoke the basis. be activate issued and Everywhere card. acts to we be first with rules Turning not trying problem are be at the risk, which a to are accounts. advise in are an that then urgent the -- point account, XXX,XXX-odd sending or face, them will we order And SMSs. would action we've to we SAPO as to also of may the relevant alleviate will contravened and about the a result, that ensure a are in new money of separate And some proactively cardholders
of our the went call we be the on terms centers, helpers published payment the in statement and also yesterday, of Saturday. the out when starts We media will terms press cycle and on fully advisers our ground, manned that in or statement
And on from about, think of a Okay. and based what if in talk you with the Cell providing can DNI, XX% 'XX? you commissions you on this plans, how C, generate SIM 'XX? C comfortable can terms little you Cell that Cell And the EPS then that cards will you C XX% cellular do can if fiscal to be about DNI think in plus feel around fiscal still accretive in -
with those XXXX We will between and of ability of a Cell it meaningful network year. in that fiscal technologies confident are very combined be distribution and our the C the contributor DNI
For big three it us signal dollar-sharing for changer, together the cover, the experience country. a national urban has more the I which coverage the XX% improves the guess, entire in previously was to across mainly game its than up which a been opens of us Cell the or from It virtually C can has geographical signed, that the way XX% initiative basis. I customer on really put centers that reach if
also is part and huge South of now of lot be adequately of will EPE our a so a clients our covered. where Africa And side reside. That rural lot customers of obviously a reside the
products, foresee a terms the our the reliable to now well low-cost in side particular this growth of revenues, of cellular accounts, service with as insurance with so And significant them very data as provide our low-cost the we're and uptick prospects of and credits and in We users. about business strategy. bullish ability the bank low-cost
We what slightly before. also to of now have customer a the different segment we had target than ability
of an in point that provide and we we exclusive the C DNI C, as result have we the done other quarters, basis. stake are of Cell so If the two from requirements, the synergies identified So we've in that investment minority of bullish. with majority Cell ability the acquisition a certainly over SIM almost extremely talk card our been view, about have to and on the last
content believe of financial we for or form And good when able phones and through talk competitive and we and us, being services. and service. expect with just an of that very product terms our more underserved services, very continue in through believe in either to been about about there we provide airtime, market. an We customers we being is we in talk or us and tablets. that's them as delivered or that way and banked to distribute products in today about of potential So telephony having normal by talk one data ours cell are a terms Those and some enormous other we communication-based
together, upside is these bringing by the of all so enormous. And
can then turns KSNET, environment? business little Okay. you the about a growth? what Thank for eventually you. back talk And competitive this And to
Sure. highly Korea environment. is a competitive
influenced that the ones. And has the provision, government services rates of there introduction a by But top of players. are financial Korea value-added competitive probably industry other competitors been the and industry X highly say, would in by hand. the environment, is one. a the serviced of between XX country capped South of XX of being an value transaction these in think, two is network I networks which primarily in are by the dominated the one and major I number processing added smaller transaction a players totality. they is KSNET side In it and these is on by hugely and of industry the business processing really our variety
So fact we now there the is cap - we put we basis, charged one on that on before just been can what are be the could hamstrung hand. on pricing compete a by a slightly that's
prevents there that hand, activities. been other from engaging the certain On the in introduced then have companies regulations are also that promotional
of were to in customers. provide of now stopped those the able initiatives charge the our devices by have also example, free past, point-of-sale kind That -- an government. been As to we the
reduction, that ourselves. now the differentiate of The losses in the how the The really an to that's fees. way could have for acquiring for your absorb fix we volumes by the order immediate removed to us is, issuing you your by increase lost. to have regain is So down and that also key -- you us element rather to if in go what or XX%, fees XX% right
volume. there a focus big So is on
that VAN to extent agents. various they other each utilize element is companies the the unique other which in differentiate The space from the Korean does
during receive agents element smaller are we and them more to along be that -- VAN are normally fees which issuers the are They between there merchants to pretty so can is And the companies. passed to from service the utilized the in pretty such agents. I And easy companies time by card KSNET of any Agents frame would to in -- call switch as for an SME the areas. rural what them cut the free agents. various -- it's extent
individual any fee quite and the you medium-enterprise uniquely a businesses. more on a or so to case, impact sector KSNET on the are lot the focused In the extent retailers. our competitors is market. other the provider the And of push the which as of also small- Whereas, profitability can have largest to significant our down Korean cut larger positioned
believe so edge our that's we to improve volumes. that's lies competitive And where and where the we need
been a obviously the material companies Obviously, experience, the the on just it's cut fees had on of the catastrophic. painful will say I for smaller it's VAN has more ones. been But much frankly. players, impact Finally, some for had us, smaller bigger than it's in very the a that
lot effectively a players obviously are a as Korean are those so volumes and to available result, the seeing market. we're And in closing surviving shop of those that the
question is Instructions] Zeifang Tom next Lucrum. [Operator of from Our
you in granularity in forward a us losses Can the QX? guys. more give going Hello, QX and CPS on little
court point this Tom, of X-month we're the at submissions the we the we financial make time, over in process in overall CPS of performance to the to period. terms are finalizing the in that - of have extension
I that's mathematics Safe in absence -- until finalized, that the to simple we our much mathematics too charge of fee, elaborate ability say to fair are pretty a to So broad want think quantify. it. the to on don't
number to XX.X and QX We QX And to of rate number only let used cash only to paid per process this and the say points. rate, first, opposed would we recipients, on probably XX.XX as are that which X.X for quarter now as grant charge I old of the at to the obviously steadily million last are an allowed phaseout ZAR on the roughly under moment declined XX.X still actual people say charge charging has differentiator That pay the QX, happens. the whereas, is paid payment. is the between X.X we we average The me beneficiaries million. at the million rate
you but XX.XX, our revenue. broad of probably a quarter. cost reduction million reduction multiply if XX of ZAR million at a a I So ZAR over a overall, loss the reduce month obviously X you it by that accordingly, measure, run an around in gives as indication to tried the We've our about would say we've last base the
larger over a Q... And XX in last the million month gets quarter? ZAR it
Yes.
And in larger Yes. it gets QX.
the It gets the be we base months correct. beneficiary last offset for partially extent may QX that the of once totality, in X period. that But or the larger reduces, to the pricing get contract in obviously finalized that's
exactly my ZAR is which Okay. expenses, ZAR Can I ZAR is for million that ask math mentioned You question by a too? housekeeping X.XX, what X X.XX, quarter a for?
about I the head -- are think talking office expenses? you that
think, get Tom, it's amortization X $X -- I I think Herman, ZAR DNI for the million I can that. acquisition. million in
our it for But employee? wasn't compensation legacy
No.
No.
back you. Okay. in queue, I’ll Thank get
follow-up Allen Group. Klee Maxim of a from have We
Yes.
talk earnings potential longer you mobile rollout then about, be MobiKwik, could what with as and international to the from the there you're For could you. areas, wallets a their potentially term you what And Thank similarly as can potential be? consolidating perspective? other the revenue base it,
you want it to do part Dhruv, the MobiKwik just handle of first?
Sure.
in obviously, products. months So We're previous X get revenues to particularly need you're MobiKwik, to India, here when the the dollars Allen, in And as you rolling significant on in. in we've of to only is key we on innings are volume. reporting out calls our generating mentioned first
a and if you initial good we've $X quarter million. growth, though last still even at new great got products I in were in mean, the So processed value and we've look seen pipeline the of there,
But volume impact products we financial of start have best more can ways the our here. go the introducing before giving the by: and quantifying So B, up. a ones that ourselves up have; keep shot A, we ramping we to driving to still in
to from that and flagship the our through platforms we've Thanks, over as those IPG month gone or all certification terms, await In are certified, We and the our we And strategic flagship, instant on planning side, and a last two as completed. development just effectively being just, as multicurrency rollout MasterCard the three direction. strategic of it's mainly and got broad session Visa that. Allen, acquiring finalizing well commence significant marketing with I the while onboarding so group our think platform, the issuing important soon Dhruv. as
top and us. contribution all set gentlemen, growing Thank and today. much that's for we line line bottom years. ourselves you the X of in that IPG, next business factor of have very We over in Ladies of joining for a terms by XXx at least target have its time a
You may now lines. your disconnect
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