Fintech group Lesaka Technologies has reported a jump in earnings as it achieved the upper end of its profitability guidance.
The Nasdaq and JSE-listed group has increased its full-year adjusted earnings per share guidance for 2026.
The group said on Thursday that net revenue for the third quarter rose 16% year on year to R1.57bn, while adjusted earnings before interest, tax, depreciation and amortisation (ebitda) was 45% higher at R337.1m.
“I am pleased to report another strong quarter for Lesaka as we continue to improve our profitability,” said Lesaka chair Ali Mazanderani.
“We have built a diversified platform, with multiple levers of sustainable growth that position us exceptionally well for the years to come.”
Adjusted EPS came in at 180c, up more than 200% year on year.
Its full-year guidance is for net revenue of R6.2bn-R6.5bn, adjusted ebitda of between R1.25bn and R1.35bn and adjusted EPS of between R5.50 and R6.
The guidance for the 2026 financial year excludes the effect of the planned acquisition of Bank Zero, which is still subject to regulatory approvals.
The company has come a long way since its days as Net1 UEPS Technologies, with its turnaround characterised by growth in South Africa’s competitive market for merchant payments, all while chasing a segment of consumers that had long been the preserve of the Post Office in its heyday.
The company has, until recently, consisted of two divisions: a merchant unit and a consumer segment. The consumer unit focuses on products such as unsecured credit, transactional banking, microinsurance and value-added services through the EasyPay platform. Following the acquisition of prepaid electricity submetering and payments business Recharger, the group now has a third division: enterprise.
The merchant unit saw its revenue falling 13% to R2.08bn, while net revenue was also down 4% to R751.28m. Segment-adjusted ebitda grew 3% to R151.1m.
The picture was more positive in the other two business units. Consumer revenue rose 41% to R626.51m, with segment adjusted ebitda up 81% to R212.54m.
The enterprise unit reported a 78% growth in revenue to R310.5m, while net revenue was up 51% R219.9m. Segment adjusted ebitda shot up 1,370% year-on-year from R2.384m to R35.047m.
Lesaka is looking to grow its cross-border payments business with plans to use its place as one of the main backers of South Africa’s first rand-based stablecoin for that purpose.
In February, a group of prominent financial institutions — Luno, a Sanlam unit, EasyEquities and Lesaka — announced the creation of rand-backed stablecoin, Zaru. The move is seen as another sign of the growing use and adoption of cryptocurrencies in the country.
A stablecoin is a cryptocurrency designed to maintain its value by pegging it to another asset, such as a fiat currency. The most common of these is the dollar. Examples of stablecoins include USD Coin and Tether. The other main peg for stablecoins is commodities such as gold or oil.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.