Latest news with #Mobikwik
Mint
a day ago
- Business
- Mint
New HDFC credit card rules: Utility payments beyond limit to face extra charges
HDFC Bank has announced a slew of changes in its credit card transactions that include new charges on wallet loading using third party apps, online skill-based gaming transactions and utility payments beyond the specified limit. The revised charges will be applicable from July 1. 'If you load third-party wallets with more than ₹ 10,000 per month on platforms like (but not limited to) PayTM, Mobikwik, Freecharge, or Ola Money using your credit card, a 1% charge will apply,' HDFC Bank said in its communication to credit card customers. 'The charge will be applicable on the entire wallet loading spend for the month and will be capped at ₹ 4999 per month,' it said. For utility transactions, a charge of 1% will apply if you spend more than ₹ 50,000 per month using your personal credit card (consumer cards). The 1% charge will apply if you spend more than ₹ 75,000 per month using business credit cards. 'The charge will be applicable on the entire utility spend for the month and will be capped at ₹ 4999 per month,' HDFC Bank said. 'Insurance transactions won't be considered as utility transactions hence no charge will be applicable,' it said. The bank has also capped reward points on insurance transactions on its popular credit cards. While the reward points on insurance transactions has been capped at 10000 per month on Infinia and Infinia Metal credit cards, it has been fixed at 5000 per month for Diners Black, Diners Black Metal and Biz Black Metal cards. For all other cards, the limit has been fixed at 2000 per month. Marriott Bonvoy cards, however, will not have capping on reward points for insurance transactions. HDFC Bank has fixed the maximum charge per transaction for rent, fuel and education categories at ₹ 4999. 'Kindly note that the existing charge of 1% will continue to be applicable on all rent transactions, only on fuel transactions more than ₹ 15000/ ₹ 30000 per transaction and only on education transactions done via third-party apps,' it said. 'If you make payments through college/school websites or their POS (Point of Sales) machines, there will be no charges,' HDFC Bank said. 'If you spend more than ₹ 10,000 per month on platforms like (but not limited to) Dream11, Rummy Culture, Junglee Games, or MPL, a 1% charge will apply,' the bank said. 'The charge will be applicable on the entire online skill-based gaming spend for the month and will be capped at ₹ 4999 per month. No reward points will be earned on online skill-based gaming transactions,' it said. Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.
Hans India
3 days ago
- Business
- Hans India
Private banks to hike charges on credit card, banking services from July 1
Starting July 1, major private sector banks like HDFC Bank and ICICI Bank will increase charges on various credit card and banking services. Both banks have informed their customers about the changes through official notifications. HDFC Bank has announced new charges for credit card users, especially for transactions involving online gaming, digital wallets, and utility payments. If a customer spends more than Rs 10,000 in a month on online skill-based gaming platforms such as Dream11, Rummy Culture, Junglee Games, or MPL, a 1 per cent fee will be charged on the total monthly spend in this category. The charge will be capped at Rs 4,999 per month. Additionally, no reward points will be given on such gaming transactions. Similarly, if a customer loads more than Rs 10,000 in a month into third-party wallets like PayTM, Mobikwik, Freecharge, or Ola Money using their HDFC credit card, a 1 per cent charge will apply to the entire amount. This fee will also be capped at Rs 4,999 per month. For utility payments, if the total spending goes beyond Rs 50,000 in a month, a 1 per cent charge will be added, again with a monthly cap of Rs 4,999. However, HDFC Bank has clarified that insurance payments will not be treated as utility payments, so no extra charge will be applied in such cases. The bank has also revised maximum charges for rent, fuel, and education transactions. The upper limit for charges in these categories will now be Rs 4,999 per transaction. The 1 per cent fee on rent payments will remain unchanged. Fuel transactions above Rs 15,000 will be charged 1 per cent, while education payments made directly through official college or school websites or their card machines will not be charged. ICICI Bank has also made changes in several service charges. The fee for depositing cash, cheques, or for DD (demand draft) and PO (pay order) transactions has been changed. Now, customers will be charged Rs 2 per Rs 1,000, with a minimum fee of Rs 50 and a maximum of Rs 15,000. Earlier, the bank charged Rs 50 for amounts up to Rs 10,000 and Rs 5 per Rs 1,000 beyond that. ATM usage fees have also gone up. After three free ATM transactions at other bank ATMs, ICICI will now charge Rs 23 for financial transactions and Rs 8.5 for non-financial ones. Previously, the financial transaction fee was Rs 21. For ICICI Bank's own ATMs, regular savings account holders will now pay Rs 23 for each financial transaction beyond the first five in a month, up from Rs 21 earlier. Additionally, the annual fee for ICICI Bank debit cards has increased from Rs 200 to Rs 300. The fee for a replacement debit card has also gone up from Rs 200 to Rs 300.
Time of India
7 days ago
- Business
- Time of India
Buy-now-pay-later offerings wane as fintechs pivot to EMI loans, consumer credit
Buy now, pay later (BNPL) services, which became a hot trend in consumer fintech a few years ago, are falling out of favour. What began as a way to let millions of Indians without credit cards access instant, short-term loans has come under pressure due to regulatory tightening and rising concerns over credit quality. Now, most of the large fintechs are either shutting down BNPL offerings or transitioning to equated monthly instalment (EMI)-based lending to stay compliant and manage risks, people in the know told ET. ETtech Prosus-backed PayU, which operates non-banking finance company PayU Finance , has migrated its BNPL platform LazyPay into a KYC (know your customer)-compliant EMI checkout solution, according to the sources. The company has phased out the earlier BNPL model where customers could split payments without undergoing intensive KYC checks. 'Fintechs are finding that instalment financing is still viable, but only through a regulated, KYC-compliant setup,' said a senior executive at a large fintech company, requesting not to be named. 'The shift is forcing many players to abandon pure-play BNPL and embrace structured EMI lending.' Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Market exits accelerate The pivot follows the complete shutdown of Paytm Postpaid , its BNPL offering, earlier this year. Around the same time, Mobikwik said in its FY25 earnings disclosure that it had discontinued Zip Loans, its BNPL product. At its peak in the September 2023 quarter, Paytm disbursed about Rs 9,000 crore worth of postpaid loans. In comparison, Mobikwik's Zip Loans disbursals stood at Rs 1,000 crore in the September 2024 quarter. Both companies are now focused on transitioning BNPL users to longer-tenure EMI products, which allow for more structured repayment and clearer risk management for lenders. A typical BNPL product earlier allowed users to club multiple purchases and repay in 15–30 days, often with little documentation. These models have now largely disappeared from the market. One of the few remaining major players in this space is Simpl , which has avoided regulatory entanglements by staying outside the formal lending ecosystem. 'We're not offering loans to our customers. We're fighting cash-on-delivery in ecommerce, food delivery and quick commerce by building a model of trust around payments and delivery of products,' said Nityanand Sharma, founder of Simpl. The startup does not partner with regulated entities, allowing it to sidestep direct RBI scrutiny. Sharma said most competitors used BNPL to acquire customers and cross-sell credit, which triggered regulatory pushback. Lenders play it safe The tightening credit environment isn't just a fintech story. Banks and NBFCs, which were the backbone of many BNPL offerings, have pulled back from the space as macroeconomic risks mount and unsecured lending portfolios swell. Also Read: Listed fintechs feel the pinch of lenders going slow on unsecured lending 'In view of elevated household leverage, we are cautious in ramping up this (BNPL) book. We've tightened onboarding norms and will review periodically,' said B Ramesh Babu, CEO of Karur Vysya Bank , on a recent analyst call. The bank, which partners with Amazon for its BNPL programme, had a book of Rs 844 crore at the end of FY25. Amazon itself signalled a shift earlier this year by announcing the $200-million acquisition of Axio , its BNPL fintech partner, indicating a desire to internalise credit capabilities. A senior banker working with multiple fintech platforms said, 'In this macro-financial environment, banks are becoming more risk-averse. We're focusing on affluent customers and aim to grow our unsecured book by about 25% year-on-year, but with tight controls.' Bigger story still intact Despite the pullback, industry insiders believe the larger narrative of unsecured consumer credit growth in India remains intact. What's changing is the form and structure. Rather than short-term, low-ticket loans with lax underwriting, the focus is shifting to EMI-based products with robust risk management, longer tenures and full KYC compliance. Many fintechs are now building checkout EMI infrastructure that mimics traditional consumer durable financing but with a digital-first interface. These products can integrate directly with ecommerce platforms and offer 3–12 month payment options, backed by formal lenders. The transformation also aligns with the Reserve Bank of India 's broader agenda to bring fintech lending under tighter regulatory oversight. ET had reported on May 27 that the RBI has clamped down on default loss guarantee (DLG) structures and instructed lenders to avoid overexposure to risky, thin-file consumers. End of pure-play BNPL 'Pure-play BNPL without proper credit assessment or regulatory partnership is effectively dead,' said a fintech founder, who has pivoted to EMI loans . 'What's emerging is a more sustainable, compliant version of embedded finance.' For now, BNPL's rapid rise appears to have hit a regulatory and risk ceiling. The next phase of growth in India's consumer credit story could be more measured, regulated, and tenure-driven.
Indian Express
15-05-2025
- Business
- Indian Express
In Conversation with Upasana Taku: Fintech, Family Holidays & Finding Balance
In a candid conversation with Khyati Rajvanshi on Magical Memories, presented by Club Mahindra in association with The Indian Express, Mobikwik co-founder Upasana Taku shares the milestones and memories that shaped her journey. From Kerala holidays to California road trips, her story is one of resilience, purpose, and joy beyond entrepreneurship. Before boardrooms and balance sheets, Upasana grew up in the quiet towns of Gandhidham and Surat. Her childhood was joyful and rooted in education, music, and middle-class values. 'We were not well-to-do, but we were always happy,' she recalls. With a physicist father and a music teacher mother, her early life was anything but ordinary. 'I was very tomboyish,' she laughs, recalling cricket games and aunties noting her bowling. While studies, debates, and books were key, rare holidays left lasting memories. 'I still remember our big vacation to Ooty, Kodaikanal, and Kovalam. That's when I first tasted beer at 16, on a beach with grilled fish and my whole family around. It's a core memory.' Upasana started her career in U.S. financial services, but trips to India revealed a huge gap in digital finance. 'In 2007-8, online payments in India were barely a thing,' she recalls. 'And I kept thinking – there's a billion people here, and so much could change.' Determined to make a difference, she co-founded Mobikwik with her partner (now husband), describing the journey as an 'expedition like Everest.' 'There were days we didn't know if we'd survive it,' she admits. 'But it was worth every step.' For Upasana, holidays are intentional, not extravagant. 'We recently sat down and counted our trips post-parenthood and realised we needed more,' she laughs. Some trips, like their Pacific Coast Highway road trip, are about adventure. 'Everyone at Pismo Beach definitely knew the Punjabis had arrived,' she quips. Slovenia is a favourite: 'From hiking to kayaking in Lake Bled, to cycling through the countryside, it was just the three of us, and it was magical.' Upasana offers her advice for those balancing business and life, especially women entrepreneurs: 'If possible, don't start a company with your partner', she says candidly. 'But if you do, set boundaries early. Respect work hours. Make sure you enjoy life.' Her mantra is clear: focused work, intentional breaks, and never missing out on life in the name of hustle. 'We all burn out if we don't get enough rest, relax or unwind. But when we come back, we come back stronger.' Make Your Family Holidays Magical From sun-kissed beaches to lush jungles, serene backwaters to majestic hills, vast deserts to captivating international locations – Club Mahindra has it all! Create unforgettable memories by embarking on a magical journey with our 140+ resorts across different terrains and amazingly unique experiences. Disclaimer: This content is sponsored and does not reflect the views or opinions of IE Online Media Services Pvt Ltd. No journalist is involved in creating sponsored material and it does not imply any endorsement whatsoever by the editorial team. IE Online Media Services takes no responsibility for the content that appears in sponsored articles and the consequences thereof, directly, indirectly or in any manner. Viewer discretion is advised.
Yahoo
08-05-2025
- Business
- Yahoo
Q3 2025 Results: Lesaka delivers on guidance, reaffirms FY2025 outlook and projects positive net income in FY2026
Commenting on the results, Lesaka Chairman Ali Mazanderani said, ' I am pleased that we have delivered on our guidance for the quarter and can reaffirm FY2025 full year guidance. We are providing Revenue and Net Revenue guidance, and projecting positive net income, for FY2026. At the midpoint of these measures, this implies a 23% growth in Net Revenue and a 42% growth in Group Adjusted EBITDA year-on year.' (1) Average exchange rates applicable for the quarter for the purposes of translating our results of operations: ZAR 18.40 to $1 for Q3 2025, ZAR 18.88 to $1 for Q3 2024. The ZAR strengthened 2.5% against the U.S. dollar during Q3 2025 when compared to Q3 2024. Consumer Division Revenue and Net Revenue increased 32% in ZAR to $24.1 million (ZAR 445.8 million) and Segment Adjusted EBITDA increased 65% in ZAR, to $6.3 million (ZAR 117.1 million). Merchant Division Revenue decreased 10% in ZAR to $103 million (ZAR 1.9 billion), Net Revenue increased 58% in ZAR to $42.3 million (ZAR 782.2 million) and Segment Adjusted EBITDA increased by 7% in ZAR, to $8.1 million (ZAR 149.9 million). Fundamental earnings per share (a non-GAAP measure) of $0.04 (ZAR 0.72) improved by 60% in ZAR, from $0.02 (ZAR 0.45) in Q3 2024. Fundamental earnings (a non-GAAP measure) increased by 98% in ZAR to $3.3 million (ZAR 58.0 million), from $1.6 million (ZAR 29.3 million) in Q3 2024. Group Adjusted EBITDA (a non-GAAP measure) of $12.8 million (ZAR 236.8 million) improved 29% in ZAR from $9.7 million (ZAR 183.3 million) in Q3 2024, in line with guidance provided. Net loss, including a tax adjusted $17.0 million (ZAR 310.6 million) non-operating, non-cash, change in fair value of Mobikwik (a non-core asset) charge, increased to $22.1 million (ZAR 404.3 million) compared to a net loss of $4.0 million (ZAR 76.4 million) in Q3 2024. Operating income of $0.6 million (ZAR 10.9 million) was lower than operating income of $0.8 million (ZAR 15.0 million) in Q3 2024 given the inclusion of $2.3 million (ZAR 42.3 million) once-off transaction costs in Q3 2025, compared $0.9 million (ZAR 17.1 million) in Q3 2024. Net Revenue (a non-GAAP measure) of $73.4 million (ZAR 1.4 billion) was at the midpoint of our Net Revenue guidance increasing 43% in ZAR, from $50.3 million (ZAR 950.6 million) in Q3 2024. Revenue of $135.7 million (ZAR 2.5 billion) was at the midpoint of our Revenue guidance and compares to $138.2 million (ZAR 2.6 billion) in Q3 2024. JOHANNESBURG, May 07, 2025 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) today released results for the third quarter of fiscal 2025 ('Q3 2025'). Story Continues Outlook: Third Quarter 2025 ('Q3 2025'), reaffirming Full Fiscal Year 2025 ('FY 2025') and complete guidance metrics for Full Fiscal Year 2026 ('FY 2026') While we report our financial results in USD, we measure our operating performance in ZAR, and as such we provide our guidance accordingly. For FY2025, the year ending June 30, 2025, we expect: Revenue between ZAR 10.0 billion and ZAR 11.0 billion. Net Revenue between ZAR 5.2 billion and ZAR 5.6 billion. Group Adjusted EBITDA between ZAR 900 million and ZAR 1 billion For FY2026, the year ending June 30, 2026, we expect: Revenue between ZAR 11.4 billion and ZAR 12.2 billion. Net Revenue between ZAR 6.4 billion and ZAR 6.9 billion. Group Adjusted EBITDA between ZAR 1.25 billion and ZAR 1.45 billion Net Income Attributable to Lesaka to be positive. Our FY2025 and FY2026 outlook provided: Excludes the impact of unannounced mergers and acquisitions that we may conclude. Management has provided its outlook regarding Net Revenue and Group Adjusted EBITDA, which are non-GAAP financial measures and excludes certain revenue and charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort. Earnings Presentation for Q3 2025 Results Our earnings presentation will be posted to the Investor Relations page of our website prior to our earnings call. Webcast Lesaka will host a webcast to review results on May 8, 2025, at 8:00 a.m. Eastern Time which is 2:00 p.m. South Africa Standard Time ('SAST'). A replay of the results presentation webcast will be available on the Lesaka investor relations website following the conclusion of the live event. Link to access the results webcast: Participants using the webcast will be able to submit questions during the live Question and Answer session. Following the presentation, an archived version of the webcast will be provided on Lesaka's Investor Relations website. Our Form 10-Q for the quarter ended March 31, 2025, as filed with the SEC, is available on our company website at Use of Non-GAAP Measures U.S. securities laws require that when we publish any non-GAAP measures, we disclose the reason for using these non-GAAP measures and provide reconciliations to the most directly comparable GAAP measures. The presentation of Group Adjusted EBITDA, Group Adjusted EBITDA margin, Net Revenue, fundamental net (loss) income, fundamental (loss) earnings per share, and headline (loss) earnings per share are non-GAAP measures. Refer to Attachment A for a reconciliation of these non-GAAP measures. Non-GAAP Measures Group adjusted EBITDA Group Adjusted EBITDA is net loss before interest, taxes, depreciation and amortization, adjusted for non-operational transactions (including loss on disposal of equity-accounted investments), loss from equity-accounted investments, stock-based compensation charges and once-off items. Once-off items represent non-recurring expense items, including costs related to acquisitions and transactions consummated or ultimately not pursued. Group Adjusted EBITDA margin is Group Adjusted EBITDA divided by revenue. Net Revenue We generate revenue from the provision of transaction-processing services through our various platforms and service offerings. We use these platforms to (a) sell prepaid airtime vouchers ('Pinned Airtime') which was held as inventory, and (b) distribute pre-paid solutions including prepaid airtime vouchers (which we do not hold as inventory) ('Pinless Airtime'), prepaid electricity, gaming vouchers, and other products, to users of our platforms. We act as a principal when we sell Pinned Airtime that were held as inventory and record revenue and cost of sales on a gross basis when sold. We act as an agent in a transaction when we provide pre-paid solutions through our various platforms and services offerings because we do not control the good or service to be provided and we recognize revenue based on the amount that we are contractually entitled to receive for performing the distribution service on behalf of our customers using our platform. Our revenue under GAAP can fluctuate materially due to changes in the revenue mix between these revenue categories. Net Revenue is a non-GAAP measure and is calculated as revenue presented under GAAP less (i) the cost of Pinned Airtime sold by us, and (ii) commissions paid to third parties selling all other agency-based pre-paid solutions (including Pinless Airtime, electricity and other products) provided through our distribution channels. We believe that the use of Net Revenue is meaningful to users of financial information because it seeks to eliminate the impact of the change in the revenue mix from the revenue categories over the periods presented. Fundamental net earnings (loss) and fundamental earnings (loss) per share Fundamental net earnings (loss) and earnings (loss) per share is GAAP net loss and loss per share adjusted for the amortization of acquisition-related intangible assets (net of deferred taxes), stock-based compensation charges, and unusual non-recurring items, including costs related to acquisitions and transactions consummated or ultimately not pursued. Fundamental net loss and loss per share for fiscal 2025 also includes adjustments related to changes in the fair value of equity securities (net of deferred tax), loss on disposal of equity-accounted investments and intangible asset amortization, net related to non-controlling interests. Fundamental net earnings (loss) and earnings (loss) per share for fiscal 2024 also includes an impairment loss related to an equity-accounted investment, and a reversal of allowance for doubtful loan receivable. Management believes that the Group Adjusted EBITDA, fundamental net earnings (loss) and fundamental earnings (loss) per share metrics enhance its own evaluation, as well as an investor's understanding, of our financial performance. Attachment A presents the reconciliation between GAAP net loss attributable to Lesaka and these non-GAAP measures. Headline (loss) earnings per share ('H(L)EPS') The inclusion of H(L)EPS in this press release is a requirement of our listing on the JSE. H(L)EPS basic and diluted is calculated using net (loss) income which has been determined based on GAAP. Accordingly, this may differ to the headline (loss) earnings per share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial reporting framework, including but not limited to, International Financial Reporting Standards. H(L)EPS basic and diluted is calculated as GAAP net (loss) income adjusted for the impairment losses related to our equity-accounted investments and (profit) loss on sale of property, plant and equipment. Attachment C presents the reconciliation between our net (loss) income used to calculate (loss) earnings per share basic and diluted and H(L)EPS basic and diluted and the calculation of the denominator for headline diluted (loss) earnings per share. About Lesaka ( Lesaka Technologies, (Lesaka™) is a South African Fintech company driven by a purpose to provide financial services and software to Southern Africa's underserviced consumers and merchants. We offer an integrated and holistic multiproduct platform that provides transactional accounts, lending, insurance, merchant acquiring, cash management, software and Alternative Digital Payments ("ADP"). By providing a full-service fintech platform in our connected ecosystem, we facilitate the digitization of commerce in our markets. Lesaka has a primary listing on NASDAQ (NASDAQ:LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit for additional information about Lesaka Technologies (Lesaka™). Forward-Looking Statements This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as 'expects,' 'estimates,' 'projects,' 'believes,' 'anticipates,' 'plans,' 'could,' 'would,' 'may,' 'will,' 'intends,' 'outlook,' 'focus,' 'seek,' 'potential,' 'mission,' 'continue,' 'goal,' 'target,' 'objective,' derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to future financial results and future financing and business opportunities are forward-looking statements. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in our Form 10-K for the fiscal year ended June 30, 2024, and our Form 10-Q for the quarterly period ended March 31, 2025, as filed with the SEC, as well as other documents we have filed or will file with the SEC. We assume no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those anticipated in forward-looking statements. Investor Relations and Media Relations Contacts: Phillipe Welthagen Email: Mobile: +27 84 512 5393 Media Relations Contact: Ian Harrison Email: Ian@ Lesaka Technologies, Inc. Attachment A Reconciliation of GAAP loss attributable to Lesaka to Group Adjusted EBITDA loss: Three and nine months ended March 31, 2025 and 2024, and three months ended December 31, 2024 Three months ended Nine months ended March 31, Dec 31, March 31, 2025 2024 2024 2025 2024 Loss attributable to Lesaka - GAAP $ (22,058 ) $ (4,047 ) $ (32,134 ) $ (58,734 ) $ (12,405 ) Less net income attributable to noncontrolling interest (20 ) - (28 ) (48 ) - Net loss (22,038 ) (4,047 ) (32,106 ) (58,686 ) (12,405 ) (Earnings) Loss from equity accounted investments (12 ) (43 ) (50 ) (89 ) 1,319 Net loss before (earnings) loss from equity-accounted investments (22,050 ) (4,090 ) (32,156 ) (58,775 ) (11,086 ) Income tax (benefit) expense (2,934 ) 931 (6,412 ) (9,268 ) 1,881 Loss before income tax expense (24,984 ) (3,159 ) (38,568 ) (68,043 ) (9,205 ) Reversal of allowance for doubtful EMI loans receivable - - - - (250 ) Change in fair value in equity securities 20,421 - 33,731 54,152 - Net loss on disposal of equity-accounted investment - - 161 161 - Unrealized (gain) loss FV for currency adjustments (114 ) 121 435 102 101 Operating loss after PPA amortization and net interest (non-GAAP) (4,677 ) (3,038 ) (4,241 ) (13,628 ) (9,354 ) PPA amortization (amortization of acquired intangible assets) 4,974 3,562 4,867 13,588 10,762 Operating income before PPA amortization after net interest (non-GAAP) 297 524 626 (40 ) 1,408 Interest expense 5,777 4,581 6,174 16,983 14,312 Interest income (645 ) (628 ) (721 ) (1,952 ) (1,562 ) Operating income before PPA amortization and net interest (non-GAAP) 5,429 4,477 6,079 14,991 14,158 Depreciation and amortization (excluding amortization of intangibles) 3,455 2,229 3,356 9,340 6,698 Interest adjustment (890 ) - (757 ) (2,478 ) - Stock-based compensation charges 2,497 2,090 2,644 7,518 5,653 Once-off items (refer below) 2,306 907 488 4,599 169 Group Adjusted EBITDA - Non-GAAP $ 12,797 $ 9,703 $ 11,810 $ 33,970 $ 26,678 Three months ended Nine months ended March 31, Dec 31, March 31, 2025 2024 2024 2025 2024 Once-off items comprises: Transaction costs $ 1,084 $ 276 $ 462 $ 1,621 $ 456 Transaction costs related to Adumo and Recharger acquisitions and certain compensation costs 1,222 631 222 3,174 665 Indirect taxes provision release - - (196 ) (196 ) - Income recognized related to closure of legacy businesses - - - - (952 ) Total once-off items $ 2,306 $ 907 $ 488 $ 4,599 $ 169 Once-off items are non-recurring in nature, however, certain items may be reported in multiple quarters. For instance, transaction costs include costs incurred related to acquisitions and transactions consummated or ultimately not pursued. The transactions can span multiple quarters, for instance in fiscal 2025 we incurred significant transaction costs related to the acquisition of Adumo over a number of quarters, and the transactions are generally non-recurring. Indirect tax provision release relates to the reversal of a non-recurring indirect tax provision created in fiscal 2023 which was resolved in fiscal 2025 following settlement of the matter with the tax authority. Income recognized related to closure of legacy businesses represents (i) gains recognized related to the release of the foreign currency translation reserve on deconsolidation of a subsidiaries and (ii) costs incurred related to subsidiaries which we are in the process of deregistering/ liquidation and therefore we consider these costs non-operational and ad hoc in nature. Year ended June 30, 2024 and 2023 Year ended June 30, 2024 2023 Loss attributable to Lesaka - GAAP $ (17,440 ) $ (35,074 ) Loss from equity accounted investments 1,279 5,117 Net loss before (earnings) loss from equity-accounted investments (16,161 ) (29,957 ) Income tax (benefit) expense 3,363 (2,309 ) Loss before income tax expense (12,798 ) (32,266 ) Reversal of allowance for doubtful EMI loans receivable (250 ) - Net loss on disposal of equity-accounted investment - 205 Impairment loss - 7,039 Unrealized (gain) loss FV for currency adjustments (83 ) 222 Operating loss after PPA amortization and net interest (non-GAAP) (13,131 ) (24,800 ) PPA amortization (amortization of acquired intangible assets) 14,419 15,149 Operating income (loss) before PPA amortization after net interest (non-GAAP) 1,288 (9,651 ) Interest expense 18,932 18,567 Interest income (2,294 ) (1,853 ) Operating income before PPA amortization and net interest (non-GAAP) 17,926 7,063 Depreciation (excluding amortization of intangibles) 9,246 8,536 Stock-based compensation charges 7,911 7,309 Once-off items (refer below) 1,853 1,922 Group Adjusted EBITDA - Non-GAAP $ 36,936 $ 24,830 Year ended June 30, 2024 2023 Once-off items comprises: Transaction costs $ 512 $ 850 Transaction costs related to Adumo acquisition 2,293 - (Income recognized) Expenses incurred related to closure of legacy businesses (952 ) 639 Non-recurring revenue not allocated to segments - (1,469 ) Employee misappropriation of company funds - 1,202 Separation of employee expense - 262 Indirect taxes provision - 438 $ 1,853 $ 1,922 Once-off items are non-recurring in nature, however, certain items may be reported in multiple quarters. For instance, transaction costs include costs incurred related to acquisitions and transactions consummated or ultimately not pursued. The transactions can span multiple quarters, for instance in fiscal 2024 we incurred significant transaction costs related to the acquisition of Adumo over a number of quarters, and the transactions are generally non-recurring. (Income recognized) Expenses incurred related to closure of legacy businesses represents (i) gains recognized related to the release of the foreign currency translation reserve on deconsolidation of a subsidiaries and (ii) costs incurred related to subsidiaries which we are in the process of deregistering/ liquidation and therefore we consider these costs non-operational and ad hoc in nature. Non-recurring revenue not allocated to segments includes once off revenue recognized that we believe does not relate to either our Merchant or Consumer divisions. Employee misappropriation of company funds represents a once-off loss incurred. Indirect tax provision includes non-recurring indirect taxes which have been provided related to prior periods following an on-going investigation from a tax authority. We incurred separation costs related to the termination of certain senior-level employees, including an executive officer and senior managers, during the fiscal year and we consider these specific terminations to be of a non-recurring nature. The legacy processing adjustments represents amounts we identified during fiscal 2022 related to prior periods that are payable to third parties. Reconciliation of revenue under GAAP to Net Revenue: Three and nine months ended March 31, 2025 and 2024, and three months ended December 31, 2024 Three months ended Nine months ended March 31, Dec 31, March 31, 2025 2024 2025 2025 2024 Revenue - GAAP $ 135,670 $ 138,194 $ 146,818 $ 428,034 $ 418,176 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency-based products (62,302 ) (87,861 ) (69,758 ) (218,797 ) (267,350 ) Net Revenue (non-GAAP) $ 73,368 $ 50,333 $ 77,060 $ 209,237 $ 150,826 Net Revenue / revenue 54 % 36 % 52 % 49 % 36 % Merchant revenue - GAAP $ 103,001 $ 111,801 $ 115,811 $ 334,442 $ 341,044 Cost of prepaid airtime vouchers sold by us & commissions paid to third parties selling all other agency-based products (60,721 ) (85,532 ) (68,097 ) (213,991 ) (260,813 ) Merchant Net Revenue (non-GAAP) $ 42,280 $ 26,269 $ 47,714 $ 120,451 $ 80,231 Reconciliation of GAAP net loss and loss per share, basic, to fundamental net earnings (loss) and earnings (loss) per share, basic: Three months ended March 31, 2025 and 2024 Net (loss) income (USD '000) (L)PS, basic (USD) Net (loss) income (ZAR '000) (L)PS, basic (ZAR) 2025 2024 2025 2024 2025 2024 2025 2024 GAAP (22,058 ) (4,047 ) (0.27 ) (0.06 ) (404,337 ) (76,415 ) (5.02 ) (1.19 ) Change in fair value of equity securities, net 16,971 - 310,636 - Intangible asset amortization, net 3,631 2,624 63,495 49,104 Stock-based compensation charge 2,497 2,090 47,400 39,482 Transaction costs 2,306 907 42,276 17,124 Amortization, net related to non-controlling interest (82 ) - (1,503 ) - Fundamental 3,265 1,574 0.04 0.02 57,967 29,295 0.72 0.45 Nine months ended March 31, 2025 and 2024 Net (loss) income (USD '000) (L) EPS, basic (USD) Net (loss) income (ZAR '000) (L)EPS, basic (ZAR) 2025 2024 2025 2024 2025 2024 2025 2024 GAAP (58,734 ) (12,405 ) (0.81 ) (0.20 ) (1,069,054 ) (232,869 ) (13.15 ) (3.61 ) Change in fair value of equity securities, net 43,618 - 796,257 - Stock-based compensation charge 7,518 5,653 137,491 106,089 Intangible asset amortization, net 9,919 7,873 176,163 147,312 Transaction costs 4,795 1,121 86,434 21,139 Indirect taxes provision release (196 ) - (3,508 ) - Net loss on disposal of equity-accounted investments 161 - 2,886 - Intangible asset amortization, net related to non-controlling interest (166 ) - (3,006 ) - Impairment of equity method investments - 1,167 - 22,084 Non core international - unrealized currency (gain) loss - (952 ) - (17,648 ) Reversal of allowance for doubtful EMI loans receivable - (250 ) - (4,741 ) Fundamental 6,915 2,207 0.09 0.03 123,663 41,366 1.52 0.64 Attachment B Unaudited Condensed Consolidated Financial Statements LESAKA TECHNOLOGIES, INC. Unaudited Condensed Consolidated Statements of Operations Unaudited Unaudited Three months ended Nine months ended March 31, March 31, 2025 2024 2025 2024 (In thousands) (In thousands) REVENUE $ 135,670 $ 138,194 $ 428,034 $ 418,176 EXPENSE Cost of goods sold, IT processing, servicing and support 91,233 107,854 303,418 329,610 Selling, general and administration 34,217 23,124 97,213 67,146 Depreciation and amortization 8,429 5,791 22,928 17,460 Transaction costs related to Adumo and Recharger acquisitions and certain compensation costs 1,222 631 3,174 665 OPERATING INCOME 569 794 1,301 3,295 CHANGE IN FAIR VALUE OF EQUITY SECURITIES (20,421 ) - (54,152 ) - REVERSAL OF ALLOWANCE FOR DOUBTFUL EMI LOAN RECEIVABLE - - - 250 LOSS ON DISPOSAL OF EQUITY-ACCOUNTED INVESTMENT - - 161 - INTEREST INCOME 645 628 1,952 1,562 INTEREST EXPENSE 5,777 4,581 16,983 14,312 LOSS BEFORE INCOME TAX (BENEFIT) EXPENSE (24,984 ) (3,159 ) (68,043 ) (9,205 ) INCOME TAX (BENEFIT) EXPENSE (2,934 ) 931 (9,268 ) 1,881 NET LOSS BEFORE EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS (22,050 ) (4,090 ) (58,775 ) (11,086 ) EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS 12 43 89 (1,319 ) NET LOSS (22,038 ) (4,047 ) (58,686 ) (12,405 ) LESS NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST 20 - 48 - NET LOSS ATTRIBUTABLE TO LESAKA $ (22,058 ) $ (4,047 ) $ (58,734 ) $ (12,405 ) Net loss per share, in United States dollars: Basic loss attributable to Lesaka shareholders $ (0.27 ) $ (0.06 ) $ (0.81 ) $ (0.20 ) Diluted loss attributable to Lesaka shareholders $ (0.27 ) $ (0.06 ) $ (0.81 ) $ (0.20 ) LESAKA TECHNOLOGIES, INC. Unaudited Condensed Consolidated Statements of Cash Flows Unaudited Unaudited Three months ended Nine months ended March 31, March 31, 2025 2024 2025 2024 (In thousands) (In thousands) Cash flows from operating activities Net loss $ (22,038 ) $ (4,047 ) $ (58,686 ) $ (12,405 ) Depreciation and amortization 8,429 5,791 22,928 17,460 Movement in allowance for doubtful accounts receivable and finance loans receivable 1,679 843 5,699 3,532 Movement in interest payable 2,886 1,054 6,443 1,245 Fair value adjustment related to financial liabilities 105 (49 ) (159 ) (919 ) Loss on disposal of equity-accounted investments - - 161 - (Earnings) Loss from equity-accounted investments (12 ) (43 ) (89 ) 1,319 Reversal of allowance for doubtful EMI loans receivable - - - (250 ) Change in fair value of equity securities 20,421 - 54,152 - Profit on disposal of property, plant and equipment (12 ) (89 ) (53 ) (288 ) Facility fee amortized 83 65 220 381 Stock-based compensation charge 2,497 2,090 7,518 5,653 Dividends received from equity accounted investments - 41 65 95 Decrease (Increase) in accounts receivable and other receivables 10,820 5,687 6,525 (9,815 ) Increase in finance loans receivable (11,819 ) (3,720 ) (21,734 ) (7,097 ) Decrease in inventory 9,415 5,000 3,966 5,506 (Decrease) Increase in accounts payable and other payables (9,503 ) 6,463 (18,545 ) 20,566 Deferred consideration due to seller of Recharger included in accounts payable and other payables 1,130 - 1,130 - Increase in taxes payable 1,012 904 1,624 558 Decrease in deferred taxes (4,430 ) (810 ) (13,804 ) (2,404 ) Net cash used in operating activities 10,663 19,180 (2,639 ) 23,137 Cash flows from investing activities Capital expenditures (2,817 ) (2,943 ) (13,100 ) (7,950 ) Proceeds from disposal of property, plant and equipment 395 395 1,720 1,115 Acquisition of intangible assets (1,673 ) (54 ) (2,274 ) (236 ) Acquisitions, net of cash acquired (8,997 ) - (12,954 ) - Proceeds from disposal of equity-accounted investment - - - 3,508 Repayment of loans by equity-accounted investments - - - 250 Net change in settlement assets 3,085 (3,088 ) 5,389 (14,368 ) Net cash (used in) provided by investing activities (10,007 ) (5,690 ) (21,219 ) (17,681 ) Cash flows from financing activities Proceeds from bank overdraft 21,440 24,893 94,188 153,479 Repayment of bank overdraft (50,458 ) (43,380 ) (85,998 ) (172,221 ) Long-term borrowings utilized 175,819 3,398 189,496 14,426 Repayment of long-term borrowings (134,503 ) (7,238 ) (148,297 ) (13,051 ) Acquisition of treasury stock (27 ) (9 ) (12,613 ) (207 ) Proceeds from issue of shares 59 48 110 71 Guarantee fee (539 ) - (970 ) - Dividends paid to non-controlling interest (131 ) - (432 ) - Net change in settlement obligations (3,152 ) 2,469 (5,591 ) 13,362 Net cash provided by (used in) financing activities 8,508 (19,819 ) 29,893 (4,141 ) Effect of exchange rate changes on cash 1,222 (1,903 ) (830 ) (341 ) Net increase (decrease) in cash, cash equivalents and restricted cash 10,386 (8,232 ) 5,205 974 Cash, cash equivalents and restricted cash – beginning of period 60,737 67,838 65,918 58,632 Cash, cash equivalents and restricted cash – end of period $ 71,123 $ 59,606 $ 71,123 $ 59,606 LESAKA TECHNOLOGIES, INC. Unaudited Condensed Consolidated Balance Sheets Unaudited (A) March 31, June 30, 2025 2024 (In thousands, except share data) ASSETS CURRENT ASSETS Cash and cash equivalents $ 71,008 $ 59,065 Restricted cash 115 6,853 Accounts receivable, net of allowance of - March: $1,844; June: $1,241 and other receivables 36,127 36,667 Finance loans receivable, net of allowance of - March: $6,520; June: $4,644 61,261 44,058 Inventory 18,838 18,226 Total current assets before settlement assets 187,349 164,869 Settlement assets 25,093 22,827 Total current assets 212,442 187,696 PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of - March: $46,056; June: $49,762 42,554 31,936 OPERATING LEASE RIGHT-OF-USE 9,447 7,280 EQUITY-ACCOUNTED INVESTMENTS 199 206 GOODWILL 209,836 138,551 INTANGIBLE ASSETS, net of accumulated amortization of - March: $59,373; June: $46,200 142,158 111,353 DEFERRED INCOME TAXES 6,788 3,446 OTHER LONG-TERM ASSETS, including equity securities 25,774 77,982 TOTAL ASSETS 649,198 558,450 LIABILITIES CURRENT LIABILITIES Short-term credit facilities for ATM funding - 6,737 Short-term credit facilities 23,550 9,351 Accounts payable 15,149 16,674 Other payables 57,649 56,051 Operating lease liability - current 3,814 2,343 Current portion of long-term borrowings 28,088 15,719 Income taxes payable 2,438 654 Total current liabilities before settlement obligations 130,688 107,529 Settlement obligations 24,327 22,358 Total current liabilities 155,015 129,887 DEFERRED INCOME TAXES 37,367 38,128 OPERATING LEASE LIABILITY - LONG TERM 6,133 5,087 LONG-TERM BORROWINGS 166,612 127,467 OTHER LONG-TERM LIABILITIES, including insurance policy liabilities 3,093 2,595 TOTAL LIABILITIES 368,220 303,164 REDEEMABLE COMMON STOCK 88,957 79,429 EQUITY LESAKA EQUITY: COMMON STOCK Authorized: 200,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury: March: 81,278,900; June: 64,272,243 103 83 PREFERRED STOCK Authorized shares: 50,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury: March: -; June: - - - ADDITIONAL PAID-IN-CAPITAL 424,912 343,639 TREASURY SHARES, AT COST: March: 29,700,666; June: 25,563,808 (297,476 ) (289,733 ) ACCUMULATED OTHER COMPREHENSIVE LOSS (193,799 ) (188,355 ) RETAINED EARNINGS 251,489 310,223 TOTAL LESAKA EQUITY 185,229 175,857 NON-CONTROLLING INTEREST 6,792 - TOTAL EQUITY 192,021 175,857 TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS' EQUITY $ 649,198 $ 558,450 (A) We have reclassified an amount of $11,841 from long-term borrowings to current portion of long-term borrowings , refer to Note 1 to our unaudited condensed consolidated financial statement for the three and nine months ended March, 2025. Lesaka Technologies, Inc. Attachment C Reconciliation of net loss used to calculate loss per share basic and diluted and headline loss per share basic and diluted: Three months ended March 31, 2025 and 2024 2025 2024 Net loss (USD'000) (22,058 ) (4,047 ) Adjustments: Profit on sale of property, plant and equipment (12 ) (89 ) Tax effects on above 3 24 Net loss used to calculate headline loss (USD'000) (22,067 ) (4,112 ) Weighted average number of shares used to calculate net loss per share basic loss and headline loss per share basic loss ('000) 81,282 63,805 Weighted average number of shares used to calculate net loss per share diluted loss and headline loss per share diluted loss ('000) 81,282 63,805 Headline loss per share: Basic, in USD (0.27 ) (0.06 ) Diluted, in USD (0.27 ) (0.06 ) Nine months ended March 31, 2025 and 2024 2025 2024 Net loss (USD'000) (58,734 ) (12,405 ) Adjustments: Impairment of equity method investments - 1,167 Profit on sale of property, plant and equipment (53 ) (288 ) Tax effects on above 14 78 Net loss used to calculate headline loss (USD'000) (58,773 ) (11,448 ) Weighted average number of shares used to calculate net loss per share basic loss and headline loss per share basic loss ('000) 72,333 63,134 Weighted average number of shares used to calculate net loss per share diluted loss and headline loss per share diluted loss ('000) 72,333 63,134 Headline loss per share: Basic, in USD (0.81 ) (0.18 ) Diluted, in USD (0.81 ) (0.18 ) Calculation of the denominator for headline diluted loss per share Three months ended March 31, Nine months ended March 31, 2025 2024 2025 2024 Basic weighted-average common shares outstanding and unvested restricted shares expected to vest under GAAP 81,282 63,805 72,333 63,134 Denominator for headline diluted loss per share 81,282 63,805 72,333 63,134 Weighted average number of shares used to calculate headline diluted loss per share represents the denominator for basic weighted-average common shares outstanding and unvested restricted shares expected to vest plus the effect of dilutive securities under GAAP. We use this number of fully diluted shares outstanding to calculate headline diluted loss per share because we do not use the two-class method to calculate headline diluted loss per share.
