Lesaka reports 9% revenue jump in Q3

Lesaka Technologies, a leading fintech company in Southern Africa, has reported a significant 9% revenue jump in the third quarter, bringing their total revenue to 2.6 billion rand. The company's CEO, Lincoln Mali, credited the strong growth to the improved performance of their consumer and merchant businesses, with revenue increases of 19% and 8% respectively. Mali expressed confidence in maintaining this growth trajectory for the remainder of the year, with a positive outlook on the coming quarters. He highlighted the company's focus on consumers in the social grant beneficiary space and micro merchants, which have seen substantial growth despite economic challenges in the middle market. In addition to their impressive financial results, Lesaka Technologies made headlines with the announcement of their acquisition of Adumo, a leading independent payments and card issuing provider. The acquisition, valued at R1.5 billion, is a strategic move to strengthen Lesaka's position in the fintech market. Mali emphasized that the acquisition will not only expand their geographic reach but also provide a broader product offering for their customers. Looking ahead, Mali hinted at potential future acquisitions but stressed the importance of ensuring that each investment aligns with their growth strategy and adds value to their existing business. He highlighted the goal of becoming a consolidator in the market while driving organic growth in their current operations. With the Adumo acquisition expected to be finalized by the end of August pending shareholder and regulatory approval, Lesaka Technologies is positioned for further expansion and profitability. Investors responded positively to the news, with Lesaka's stock rising by 12% following the acquisitions announcement. Mali expressed appreciation for the market's support and reiterated the company's commitment to delivering value to shareholders. While the company continues to work towards achieving profitability, Mali pointed out a notable improvement in EBITDA, with a 47% increase from the previous year, exceeding their guidance. Overall, Lesaka Technologies' latest financial report and strategic acquisitions underscore their commitment to growth and innovation in the fintech sector. With a strong focus on customer-centric solutions and expansion into new markets, the company is well-positioned to capitalize on emerging opportunities in the digital economy.