Lesaka Technologies full-year revenue up 11%

Lesaka Technologies, a leading Fintech group in Southern Africa, has reported an impressive 11 per cent increase in full-year revenue, reaching R10 billion. The company also saw a significant turnaround in operating profit, with a reported R67 million compared to a loss of R275 million in the previous year. Despite these positive developments, Lesaka still finds itself in net loss territory, although the loss has nearly halved from the prior year. To delve deeper into the company's performance and future prospects, Lesaka's CEO for Southern Africa, Lincoln Mali, joined CNBC Africa for an insightful discussion. Mali highlighted the key drivers of performance, the strategic acquisitions fueling growth, and the competitive advantage Lesaka holds in the competitive fintech landscape. One of the key drivers of Lesaka's performance has been its robust growth in various segments of its business. Mali pointed out the strong performance in card acceptance, VAERS, EPA accounts, lending, and insurance. He emphasized that the underlying businesses are performing well, setting a solid foundation for future growth. Despite some softness in revenue, attributed to the revenue recognition of pin-based versus non-pin-based sales, Mali expressed confidence that Lesaka is on the right trajectory. The company's focus on organic growth and strategic acquisitions has been instrumental in its turnaround story, transitioning from cash burn to cash generation and achieving profitability. Looking ahead, Mali outlined Lesaka's growth strategy, which includes a combination of organic and acquisitive growth. The company aims to leverage its current businesses for further expansion while actively seeking new acquisition opportunities. Mali highlighted recent acquisitions, such as Tutsides and Dumo Transactions, as strategic moves that will enhance Lesaka's capabilities and scale in serving consumers, micro-merchants, and enterprise businesses. Lesaka's higher profitability guidance for the upcoming financial year reflects the confidence in its growth prospects, driven by both organic initiatives and future acquisitions. Amidst the competitive landscape of the fintech industry in Africa, Lesaka's competitive advantage lies in its scale and innovation. With over 120,000 merchants and a significant throughput, Lesaka has the foundation to compete effectively. Mali pointed out the company's innovative products, such as Fuel Connect and data analytics solutions, that address specific market needs and enhance customer experience. Lesaka's strategic focus on acquiring businesses that add scale, solution sets, and technology further strengthens its position as a leading fintech player in the region. As Lesaka continues its growth trajectory and aggressive acquisition strategy, Lincoln Mali emphasized the importance of stabilizing and integrating acquired businesses effectively. The appointment of key executives, including Naeem as COO and Dan Smith as CFO, reflects Lesaka's commitment to building a strong leadership team with expertise in M&A and business integration. Mali underscored the balance between organic and inorganic growth, highlighting the need to ensure that acquired businesses add significant value to Lesaka's overall operations. The company's focus on driving performance in existing businesses while pursuing strategic acquisitions positions it for sustained growth and success in the dynamic fintech landscape. In conclusion, Lesaka Technologies' performance highlights its resilience and strategic vision in navigating the evolving fintech landscape. With a clear focus on growth, innovation, and strategic acquisitions, Lesaka is poised to consolidate its position as a key player in the Southern African fintech space. The company's proactive approach to driving both organic and inorganic growth underscores its commitment to delivering value to customers, shareholders, and stakeholders.