Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

South Africa's Lesaka Technologies Q1 net revenue rises on consumer and enterprise growth 

By Reuters News


Overview

  • South Africa fintech firm's fiscal Q1 revenue rose 8% yr/yr in ZAR terms

  • Adjusted EPS was positive for the quarter, but fell 26% yr/yr in ZAR terms

  • Company reaffirmed full-year outlook, citing 17 consecutive quarters meeting profitability guidance


Outlook

  • Lesaka sees Q2 net revenue between ZAR 1.62 bln and ZAR 1.72 bln

  • Company expects Q2 group adjusted EBITDA between ZAR 280 mln and ZAR 320 mln

  • Lesaka reaffirms FY2027 adjusted EPS guidance of ZAR 7.50 to ZAR 8.50


Result Drivers

  • MERCHANT SEGMENT DECLINE - Merchant revenue fell 13% yr/yr in ZAR terms and segment adjusted EBITDA dropped 51% as the company faced lower transaction volumes

  • CONSUMER AND ENTERPRISE GROWTH - Consumer revenue rose 24% and enterprise revenue climbed 60% yr/yr in ZAR terms, supporting overall group performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Net Revenue

$97.22 mln

Q1 Adjusted EPS

$0.04

Q1 Net Loss

Miss

$4.18 mln

$2.79 mln (1 Analyst)

Q1 Adjusted EBITDA

Miss

$13.51 mln

$14.21 mln (1 Analyst)

Q1 Operating Income

-$1.07 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the financial technology (fintech) peer group is "buy"

  • Wall Street's median 12-month price target for Lesaka Technologies Inc is $7.56, about 89% above its November 3 closing price of $4.00

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Nov 3 - Payments platform Block's Q3 profit beats estimates

  • Nov 3 - Marqeta Q3 revenue slightly beats estimates on volume growth

  • Nov 3 - Block lifts profit outlook on Cash App strength, reaches preliminary DOJ settlement


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.
The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.
 

Cryptocurrency-related content is intended solely as news and market commentary. Crypto Derivatives are not available to Retail clients registered with Capital Com (UK) Ltd.