Lesaka Technologies reported a return to profitability for the year ended 30 June, helped by a strong performance from its consumer business and a marked recovery in adjusted earnings.
Consumer arm fuels the turnaround
The fintech group said full‑year revenue rose 1.7% year on year to R12.181bn, while net revenue increased 20% to R6.325bn. Most notably, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) climbed to R539m — more than three times the prior comparable period.
Lesaka’s consumer segment, which offers products such as unsecured credit, transactional banking, micro‑insurance and value‑added services via the EasyPay platform, reported a 38% rise in revenue to R2.402bn. Management said the consumer unit’s earnings improved strongly, with a 78% increase in earnings over the period.
“After 16 consecutive quarters of meeting our guidance over a four‑year period, there’s a lot of pride in our teams and a lot of gratitude to our customers. But now is the opportunity to scale,” CEO Lincoln Mali said.
Merchant segment lags amid integration
The merchant division — historically the group’s mainstay — showed weaker dynamics. Gross revenue from merchant activities declined by 10% to R8.61bn, although net revenue edged up 3% to R3.096bn. Segment‑adjusted EBITDA for merchant fell by 6% to R602m, reflecting a year of rebuilding and integration rather than immediate margin expansion.
Mali acknowledged that while volumes across card, cash and digital products increased, converting that volume growth into higher financial returns will be a priority in the coming year.
New enterprise division after acquisition
Lesaka has expanded its structure beyond the prior two‑division model. Following the acquisition of prepaid electricity submetering and payments business Recharger, the group now reports a third division: enterprise. Management says this broadens the company’s product mix and revenue streams.
| Metric | Year to end‑June | Change |
|---|---|---|
| Revenue | R12.181bn | +1.7% |
| Net revenue | R6.325bn | +20% |
| Adjusted EBITDA | R539m | >3x |
| Consumer revenue | R2.402bn | +38% |
| Merchant revenue | R8.61bn | -10% |
What this means for customers, shareholders and the sector
The results suggest Lesaka’s investment in consumer‑facing products is beginning to deliver measurable returns: stronger consumer revenue and a big uplift in adjusted EBITDA point to improving profitability levers beyond the merchant business. For households, growth in consumer offerings such as transactional banking and micro‑insurance could mean broader access to financial services, though Lesaka reiterated its intention to scale carefully rather than rush expansion.
- Investor perspective: the rebound in EBITDA and net revenue are positive signals after a prolonged period of restructuring and mixed performance across divisions.
- Operational focus: converting merchant volume into value remains a task for the next financial year, according to management.
- Strategic change: the addition of an enterprise division via the Recharger acquisition diversifies revenue sources and positions Lesaka in the prepaid energy and payments market.
Lesaka’s leadership framed the results as the platform phase concluding and execution to scale beginning. The company now faces the familiar challenge for fintechs: turning growing product usage into sustainable margin improvement while managing the integration of acquisitions and the operational complexities of multiple business lines.
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