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Net 1 UEPS (UEPS)

Participants
Dhruv Chopra Group VP and IR
Herman Kotzé CEO
Alex Smith CFO
Scott Buck B. Riley
Stephen Ranzini University Bank
P.J. Solit Potomac Capital Management
Call transcript
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Operator

Good day, ladies and gentlemen, and welcome to Net 1’s First Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this conference is being recorded.

I would now like to hand the conference over to Mr. Dhruv Chopra. sir. ahead, go Please

Dhruv Chopra

Welcome today first Kotzé; is Smith. CFO, Juliet. call. and XXXX With Alex me our to you, quarter our earnings our Thank CEO, Herman

on a presentation Our www.ir.netX.com. supplementary release Relations website, and are press available our Investor investor

this look associated As to regarding be making ask the the press with release cautionary language risks we forward-looking a call, will uncertainties and forward-looking statements, statements. reminder, I our and during at you contained in

certain most non-GAAP call, provided this addition, GAAP using we these will In measures. measures. we have financial be a non-GAAP during And measures directly of reconciliation to the comparable

assist We non-GAAP in trends underlying our results measure. in operations understanding our business. will our of analyze African to results of discuss release rand, investors a We press in the which is our South rand in

you U.S. As between fluctuations be the African can rand. South results know, by significantly currency affected Company's dollar the and the

Q&A turn with our a prepared have over following But, call Herman. the remarks. session We me let that, to

Herman Kotzé

you, Thank day everybody. to and Dhruv, good

been to in has well progress following weeks we to the last want I mainly shift no controlling the have our today's we since as since six discussion therefore, And of option exercise our focus made European ago. the on Bank reported strategy, and Frick, take stake only strategic as There development September.

hardware in revenue The XXXX constant ad-hoc include, telecom million, and $XX of reported over included sales, highlights QX which nice QX $X but we currency. improvement XXXX our of technology of first, still product approximately million results a

actions months. as $X.X positive over a our million, of Second, finally we returning EBITDA, of nine reported the past Group’s adjusted result EBITDA to

give XXXX, XXX KSNET improved at as integrated solution related us And as Third, accelerate unprofitable a to did EPE further Frick help our to and March a QX a of XX% would this exit financial agent us finally, a over services. Europe. XX% again our controlling million EBITDA efforts option our we Fourth, by fintech and $X.X vertically XXXX, in percent points to to Bank quarter remained of result compared stable which interest relationships. exercised ability to accounts margin basis acquire relatively provide

Let me progress key for four address objectives XXXX. the our on now

was to objective a BXC African model. transition South business first from of BXB The our a the model

Our had from account target in our X.X is to active by base least grow XXXX. level customer at we QX XX% million the

We driven EPE be the offerings. over and to Finbond by account expect base churn growth naturally time the new to

increase book sufficient XX% at to intend excess book. also loan to the liquidity to by fund our least We to having subject

the in launch just were without accounts and at with end $X.XXX $X.XX accounts efforts, EPE commenced of Finbond We new a Xs, down on to new date. slightly our a October the soft of expectations. the offerings line attrition marketing of opened result natural and million, on X,XXX as our any million QX, at

We product the driving will value-added financial differentiators continue short-term and key a in and value proposition in services account offerings to refine the the our role growth. play are critical and as

to growth able account we half business, fiscal meaningfully the of as accelerate XXXX. to inject into liquidity we are this soon sufficient As during expect second

deployed see to machines, and with infrastructure, in and installed country ATMs for demand continue We our rollout XXX the our in of QX bringing continued the total to ATM new X,XXX. base

QX. QX billers, compared and to a through EasyPay winning market focusing both sequentially number mandates retailers continued gain of and to with share, during

any build in to banks acquiring new in market made to also significant significantly including world, for anywhere and can R&D UEPS/EMV, We a accelerate Finbond. our issuing issuing that strides the system cloud-based time

to ultimately of two revenue businesses DNI will these the exercise in further We necessary that We option raise of at XXst the its and meaningfully acquisitions may capital. Lastly call the the expand believe diversification acquire the extend DNI a $XX XXXX, and option conclude on to acquisitions DNI of announced QX better result provide of operations. the validity call million. investors the scale and remaining Cell DNI to strike C. and our appeal the of sources In March the to price XX% will prospective XXXX of acquisition allow

C For we proposed with pursuing C, value has of our continue its to that carry the MTN Cell to conclude sharing QX expects C been to at actively agreement subsequent XXXX. zero in recapitalization. and Cell its investment Cell infrastructure

payments introduce to and and Our for in second objective new offerings blockchain crypto scale XXXX is our Europe.

to year. end of a the new kind its IPG's new with the XXXX. this blockchain along issuing launch acquiring first products expect the fiscal new second We in calendar And of products before half brand brand crypto and and of

in of these products with cooperation rolled close out Frick. are Bank All

products revenues turn scale expect Group. these in to then to scale, we as As losses, reducing and becoming IPG first well, the accretive

the the to expected an Liechtenstein and more the option On March Bank Authority to provides to all-encompassing Financial acquire Market will to transaction banking detail XXXX. Xnd, Bank financial to cornerstone October shortly. The SMEs our European I services is discuss of region. the in and XX% close European exercised the additional is strategy subject technology we our deliver interest Frick from Frick. strategy approval in in in

visit has the they concluded scheduled approval, which Malta, final Bank approval nerve them Visa once for in audit conditional November. given onsite and of its IPG’s with been center end has Frick with

believe and for timeframes on will be QX account are during December to XXXX. We period. their completed Visa’s We provide approval unconditional Visa this to process freeze dependent and

India issuer. Reserve XXXX, MobiKwik by MobiKwik programs XXXX, In Visa the as direct Bank on In to MobiKwik with and with of Lastly applied became membership Visa launch in application card member and fiscal an the associate October for XXXX. approved India. the QX

provider. offering services qualified financial of XX successful transition has itself a due a working MobiKwik has re-launch virtual performed million larger across on of to MobiKwik which primarily currently with ahead are our card being users. We base their to in excess expectations, much scale to customer digital its

unaudited zero margin positive and MobiKwik's MobiKwik monthly contribution been XXXX It disbursing of October year loans in revenue, the cash new XXX,XXX for from September excess breakeven total compared XXXX. EBITDA month. reported is August previous since in XXXX, of September of currently XX% it up services XXXX. annualized million approximately achieved financial million, to has $XX during month and in revenue In per Digital now the of fiscal $XX account

Our solution third Carbon. strategic objective We for is XXXX rapidly sales penetration to Africa. market ZappGroup Net grow in X, Africa to accelerate through payment and aim in

to other start to XXXX. earlier signing starting deliver country this commercially at and out offerings these ZappGroup its Ghana least fiscal of solutions multiple expect partners We in and expect ZappGroup outside continues customers one XXXX. revenue year during Ghana QX for the generating into to roll its

addition, entry commenced parties into In for discussions ZappGroup multiple has with its market Nigeria.

sales the for to they Net to they addition the products generate. also X progress In have made, particularly pleased we begun are have leads with

number number continues its unique disbursed, products. Carbon report to Carbon’s sequential capital of transactions app suite importantly, by customers, growth driven value access ability indicators meet will in key results. and to exponential loans funding and to its for its be business, continued of the across demand financial delivering most of installations, added growth all of order the profitable or

in strategic of South the objective And implementation for review plan the is strategic and turnaround finally, XXXX Korea. our fourth

This Korea, our in During QX the exiting review unprofitable the resulted improvement our of but a have implementation certain in XXXX, plan X merchant reduction Pertaining the evaluation a we strategic their included financial in turnaround business, business. profitability. progress agent potential of continued revenue, tangible which to the of phase of relationships. modest disposal of in our a advisors of to commenced and

Partners the of recognize few to conclude do by further FT is we While at process importance competitive efforts, comment the these months. an we this in but this do stage, and ongoing cannot being process we managed this next expect

in provide and now controlling around the our take and detail our with the further to some like synergies Frick, strategy to which the bank. context decision resulted would I Bank interest in European

we have virtual Over of the art processing assets blockchain solutions VFA issuing, or financial and and as two well acquiring state the SMEs the technologies past for nascent for as industries. developed years,

new and significant predominantly blockchain-based are entrants. markets, target rapidly and Our growing a opportunity e-commerce present for transactions

Adyen, cost, companies and they and own providers. third-party these integrated on a fintech PayPal not vertically are Wirecard license common banking and European leading a are businesses have as offer include a dependent all service lowest Europe's the able to that thread at

the have opportunity given we the an can solution integrated for vertically scale a where of identified these disrupt entities, market the However, underserved market. SME

bank key company banks. via membership, requirement fully a any MasterCard model, partnership is any also offered by the that them, operate Visa with A payments for terminated to it access but the be may and business to while have at usually from presenting Companies time, independently can the the risk. only to banks licensed compete placing a difficult to agreement pricing risk at makes available

original controlling our the market negotiated the South with opportunity option banks, We and an Frick in interest coupled to at two develop technology if the Bank experience acquire to reason, For to address this ourselves of market efficiently. would that viable third-party gave we investment. with to a was Africa need our determine we in years time

developed banking the also banking has It of as and virtual with fully well operators. for in Frick exchanges advisory custodial the leading operating Bank the services regulated established a as has itself currency services several to industry Europe, in the environment. in leader benefit as VFA arrangements world's products, crypto added

range, has virtual and complement development The developed completed singular by new its Bank and of product complicated investing developed of of relationships. crypto IPG the which has and process streamlining financial been assets. IPG and simplifying blockchain products the with purpose activities new the Frick’s storing

and the user December. of plan before in We product final end launch testing are the of our acceptance range phases to

streams, offerings and sales. revenue enable hardware Our will new transaction-based revenues, subscription-based

are in XX% but years at technology expect this from The onwards with in top three largely returns bottom years. line and growth the these resulted during bank the personnel complete of for target significant least ROE and investments of lower last the next two we XXXX investments period have within and now

driving to and combined So, a payment time deliver provide therefore solution for entity in and profit platform vertically Bank our in revenue hard for a value-creation currency end-to-end Europe, IPG will integrated the NETX. competitive, significant a in payment Frick and over meaningful Group summary,

with we new the we products, look excited are have developed business tied endured issues months. and have non-productive focusing over up conclude, to markets models forward the and legacy XX and execution with than To past on the rather we

over financials. over it Alex go hand now me the Let to to

Alex Smith

be ago, the within trends the I'll everybody. to to of as day operating quarter first discussing good XXXX. to and a key well Herman, the XXXX our compared and results segments fourth of quarter you, from as Thank year

Our the by given year. sequential Group the comparisons relevant the past are more over today changes endured

year a XXXX, C-related a quarter Appeal pleasing this telecom quarter the full compared per share fourth loss of saw you This which $X.XX of impact per improvement $X.XX Supreme of the ZARXX.XX Cell work XXXX. share DNI. the our product ago, and quarter XXXX impartment, compared by fundamental the of a loss Court average was compares the certain Cell of rate restructuring if the in of recorded rand-dollar ago, in the year fair Cedar fundamental the adjustment, to and a to value first the earnings first as exchange exclude share for also assisted of impact the $X.XX, sequential ZARXX.XX the was from For included time. of fourth ad-hoc contribution the ZARXX.XX and we per effects This sales. fundamental ruling. We is of It technology quarter

usage but processing year-over-year $XX.X fourth XXXX, down the primarily decrease up XX% XXXX ATMs. lesser in including decreases a a EPE in offset the to SASSA quarter on transaction The to revenue, SASSA cards the constant basis. was a resulting termination were the partially higher African South with those transaction of Grindrod a of the operating as our accounts. first revenue segment, of currency of extent first in and increased of due result impact contract XXXX, number quarter revenue on from income X% These of the compared and quarter of by reduction million the By with reported of

The the negative quarter XXXX respectively, fourth of Our quarter deterioration to and and reversals largely non-recurrence XXXX. negative to quarter operating the due negative quarter several first margin XX.X% X.X%, the compared the XXXX. the in of was XX.X% of XXXX in in and for was cost of fourth

XXXX, The of first International generated to XX% to fourth XX.X% year-over-year decrease contributor X% operating decline. quarter ago, first in quarter to was fourth X% quarter was in the with XXXX of largest XXXX. compared transaction to the Segment year-over-year and million a improved the revenue dollars. the the year X.X% XXXX, compared quarter and first down U.S. in compared down of processing of $XX the in quarter XXXX, which revenue margin IPG of in the of

quarter of to first a XXXX, on agent unprofitable and volumes KSNET processed year-over-year was certain the to of quarter merchant result fourth and revenue contracts, of million, lower XXXX. won due down For exiting as X% $XX.X down in primarily the X% Korean

initiatives the first by However, EBITDA points more consistently undertaken benefits been quarter and improved compared over seeing expanding we're margins, of which the the XX% in have that of than and to year the the the previous basis quarter XXX in various been XXXX. have was last

million should a capital asset out XXXX. we approximately incurred KSNET’s its current costs include XXXX, launch than cash need product IPG the we losses with legacy QX, costs expect losses. to start fiscal during development top growth, $X.X for return historically of businesses fiscal products to once strong, for decline, we of on new our crypto the incurred lower business respect much have storage the the once the development to during and continued also remains conversion to reduce was but These $XXX,XXX case. pare investments of roll product. in IPG’s

due Financial of The $XX.X XX% of generated the quarter prior revenue. inclusion XXXX, fourth compared XX% technologies to beginning XXXX. lending compared year which down quarter insurance DNI started to and million the from XXXX but higher with the of applied deconsolidation of lower the was at the quarter and primarily quarter of XXXX was of fourth first revenue in which and decline first the

by However, previous saw sales impacted technology strong quarter, million. that approximately product positively $X in compared to we the revenue ad-hoc telecom

this is related first and infrastructure. to XX.X% XXXX our negative quarter compared level X% revenue margin influenced XXXX. quarter fourth branch as a Operating component of the fixed significant the margin of in in operating the incurred XX.X% costs by segment, financial in services is heavily to there the The to primarily was cost operate

the and returned the first Activity through lending EPE and base, more insurance with stable levels. have fairly businesses steady EPE normalized performance accounts remained our also to quarter, operating

levels. level loan the products and we credit to the the stability, at was historical with rates have on similar also new back quarter. launched We've the book moving take-up risk. during loan net monitoring that and Our are impact start seen variable default And quarter, towards of

wider the also largely involve policy last and other base. customer remained at the new quarters, new This well Our implementing have base new micro products. for much the insurance as to policyholders two a over potentially plans will distribution we developing flat grow product, around XXX,XXX policyholder funeral are as across channels traditional

the normalized Our of intangible million line expenses that slightly this were to now higher DNI, equivalent are But, last Corporate following year are related stock first quarter assets than advisor in by fees of to amortization, asset corporate is higher some charges. than more fully acquired due strategic intangible initiatives. lower the costs acquired our fact the the XXXX of of quarter write once XXXX, amortized. deconsolidation offset and in of IPG’s with the $X.X the costs is the quarter back previous for compensation fourth

C any seeing C fair recapitalization assess has zero do continue our not the increasing the focus. that until core instead value some an likelihood We complete is on of fair create increasing Cell to value. We needs itself operations investment focus recapitalization of in but see of to to benefits management, the a completed. liquidity been the sustainable Cell to from value

are and looking to the distribution We C's team continue network management support provide to our for Cell to benefit. leverage

saw business accounted in beneficiaries XX% the the of amount, lending the of $X.X that last of Finbond, a in is DNI, of the first equity second investments the million result was in that period in compared quarter to the period from from year. $X.X our accounts bank income reduced contribution Within in XXXX investment recognized a SASSA quarter last equivalent contribution same book We year. the of of The million from during reduced following a migration the consolidated year. million Finbond last in $X.X separate half to we

investments continues our investments. equity reported investment calendar profitability on near-term by expect impacted see in timing stronger to in Overall, Bank its operation. contribution performance by accounted the we the be expect from into to impacted results basis, the Frick's of it an a end various positive annual to And we by expand year. to people is of its as the be our

$XX.X in our million was XX, our unrestricted at respectively, Setting against to the June. short-term At $X.X September and XXXX, compared cash million million, $XX investment million credit $XX.X of means The capital end our approximately facilities reversed, in of end. $XX.X quarter is amounts off these $XX.X net largely to reduced to decrease due the in the million million cash quarter. working post the was quarter from balances into cash largely that unrestricted

capital the Adjusting flow requirements working quarter million should utilized. million capital airtime various $XX.X quarters. purchase to is in inflated order had of in $XX.X which borrowings. C of available working in next which for $X.X funded $XX.X at Capital related XX, cash effect to was facilities of net of We of through into have satisfy XXXX, of the bulk million of our leaves cash the $XX.X which reflected territories banking ATMs this million from a is expenditures $X.X million the two for been a us September short-term Cell Investment in resources. of by investment million

associated had XX, of As September restricted cash utilization million. and XXXX, short-term of $XX.X $XX.X we of facilities million

million, of cash in drawn in presented system and facilities have billion these sheet. ATMs specifically or fund We to facilities have South and balance credit in restricted cash $XX.X processing on the our the ZARX.XX place short-term Africa under as

in once increase only to recapitalization purchase cash borrowing airtime amounted on is capital. working C we million, sheet of funding the balance $X to flow the million under utilization of $X.X C the our included the terms Cell settle complete free of able for arrangements. debt expect an airtime, Adjusting which Cell to purchase C's Cell or which be to relates the our The

SA businesses. new all call, discussed, as in and investments return In international flows requirements working requirements continue liquidity internal to growth. respect fuel cash to profitability, to capitals our growth funding we resources the have operations the to required the need buyback business are share intramonth short-term we in to have SA some As to operational there requirements in some commit the that fund on last some and of continue launches or operations to the We particular, units. product the and opportunities in our ability in of they constrain funding

However, event capital on the remaining the sale occurrence other will DNI of a of the of as this and/or liquidity other the requirements. capacity dividends share our alongside such investment disposal for businesses, buybacks or create

Our first million $X XXXX. quarter the the $X.X tax quarter expense first compared was to in XXXX million of expense of

benefit effective to related the to African rate a certain by recorded businesses continues impacted net losses. not losses operating Our be tax tax have these by asset we deferred incurred effectively South as

effective be of to Our is losses to distorted incurred continue tax our likely rate by certain businesses. by

weighted constant share at through shares the million relatively Our of remained first XX.X quarter XXXX. average has count

the South in maintain we quarter, offset of our in EBITDA and to losses and new adjusted guidance of with corporate IPG, our exchange $XX rate Korea fiscal first $X, being ZARXX.XX generate operations internationally to partially Africa improved startup million, by in XXXX overheads. Despite South the the performance improvements using least at

business then resources necessary we regrowth our potential in visibility revisit South particular. liquidity We can and the events as commit improves, our to the guidance the over African will of

up for open Q&A. now call can the We

Operator

Buck Thank from you [Operator much, B. Riley. Scott The first very question sir. Instructions] comes of

Scott Buck

appreciate Hey. guys. I the Good time. morning,

court there that think steps quarter. you in court potential should what and ruling I negative you next we curious a how had are, against guess, the You I'm about went the liability? had a ruling. the

Herman Kotzé

Scott. Hi, Sure.

to Court. decided We ruling to the appeal the Constitutional have

Court Appeals sustains So, the judgment. that the implementation actually Supreme of of

XXXX, response the to appeal too part get we soon from So, calendar expect the long. waiting as next for date take of is And XXXX. don’t that we that will Hopefully, and the will -- for we as Constitutional as whether not. step Court be to set the the will decision the we early court hear they or

process, And particular so, color the more we've been soon of around to able appeals we’ll as be through as that give claim. status the

Scott Buck

great. Okay,

what until businesses you some Second, it of a able sounds like to are and Can liquidity divestitures some holding the pattern talk about of in little guess, a is what bit there? in to really et a up I products, cetera. South the sales go, geared through and is access long-term potential commercial you're and the Africa, ready maybe now of opportunity kind bit

Herman Kotzé

Sure.

in EasyPay So, base be the past, core our two bank focus account year our next Everywhere market, as the African call of to we -- will it to to years the used accountholders, rebuild over South accountholders. in

the X. all investment’s Finbond, approximately the in We of We have bank. new card of issue own know in with collaboration required Finbond. you work to the is may XX% finalized stake Net as company

obvious for decided our investment companies. in our we collaboration so, And product develop to one new with reasons, offering of

is really offering in very the So, similar we’ve to the discussed what past.

aim We products the targeted that is markets. of unbanked a together and underbanked put so at to called basket

life country is not statement within So, we account, cost form market credits, or line cost of important cheap to fees. our I the products. with with includes one the retail a It type that terms insurance current recipients, think which account so also the telephony The offering unsecured it months. product. low and in includes in lowest access cost of bank to differentiate access anything this what products this is and its grant think, access social life address to a of we we broader service includes and transaction traditionally that six bank ultimately the in portfolio, insurance, cheap to only we service have between Then, it's low in to

we across this $XXX Net country. locations year on next the rolling target to our approximately focus efforts the basket for has approximately has collaboration Finbond with X country. or out our locations products branches of So, in or across Finbond. branches or will the two, base XXX

put pilot services All us indicated, done in to So, all we it now together. financial that exists, the our That, the a products logistical network needs of been phase, is the of has network Xst started on as for October. exists. distribution

that and to ready the for We XXXX, will be by beginning company, number will that services, transactional we as fee purchasing customers ATM services, and will financial of the of that advertising drive calendar et that et lines the prepaid proper revenues cetera. drive we we including full and earn revenues make launch our network, obviously earn well think a marketing network, utilities also do of as revenue value-added point-of-sales as use cetera, the our a our

Scott Buck

Okay, great. Last next benefit ad-hoc that one sales quarters, there that there opportunities one-time could for over of million or me. The tech additional we a $X see are few shot? quarter, from this the kind is

Herman Kotzé

do revenues these of always ad-hoc to the that easy great lines hardware sales business have a a not It’s we component We accuracy. where sales with is of generate. number predict

hardware revenues, our hardware. generating SIM addition we’ve that our annuity-based unit. business to got in have We and all Those unit, chip got sell card our security we’ve unit, module also sales are point-of-sale

this place that customers a us customers We us. orders continue the have our time. it’s And we orders it to from believe time from on not at on call look provide. will of But to actually that those incidental hardware materialize. from an believe will not upside, over the to time the that part what is We year, really can longtime next there it business, core that same is, forward reason time no if we of sort way to orders is looking I place

Operator

University Stephen [Operator Ranzini Instructions] comes question of next Bank. The from

Stephen Ranzini

of unwilling it like or to that on and you businesses apparent? see into is considerations not South Finbond? curious law synergy are clear is there as issues don't negative a African like hesitant My bank would looks your Herman shareholders Are synergy there a clearly not seems that stock And South done back emerge are thoughts you're that bank a businesses take to of morning, It or your that and team. you under your consequences Finbond that great the Bank you from transaction are company, Bank. that with it’s great deal there do as Why of to Good What with African synergies between there a control question hold Frick. doing is full there of just hear there. South deal I'm holding those. they're that? a transaction, becoming African just a the

Herman Kotzé

for something No that for things kind we our us business in detail. access consider it problem. discussed our like to a think. South license, in to African bit couple a European is makes Stephen. that, unfettered is that and lot which also African I a environment, stating of It great with It's South complicated cement the of side on need the makes factors sense a and well-considered There certainly having obvious, to local or Thanks the scenario. of are little more from it

The that listed first thing is Finbond is public a company.

of specifically, lengthy insurmountable relatively the when to will means, processes, to So, to and comes processes. timing processes, it from but time-consuming most is obtain specific That We approval it complicated just competition need fairly I and would the consultations, authorities. and any not locally listed documentation Exchange. think be also number the regulators, approvals, locally subject here shoulder on Stock a the Johannesburg transaction complicated

So, delaying to we factor is need into take consideration another that that account.

of that is Finbond a Finbond's Africa Reserve they results. businesses. the at reflect which thirds It think this Finbond as also here North the in in consideration a the American obviously South comprises the is need business time. African license. results South It a business, ago, North and has South a process. significant banking of mutual to final bank The Bank. consulted two business mutual a the owns And, this of component actually regulated of geographical in also current distinct American has last by weeks roughly South and into contributes Africa be And were financial it is two Group's would published African point profits couple they I a

at corporate together looking in the specific the interim. to with all the finance is time. Finbond products things are very the we But, launch elements So, of now right the focus

of terms investee cooperation the got to I service is say getting that and we one great financial expect think, the from is it's of what and at our that commercialized products would in we’ve level safe operational really various companies.

Stephen Ranzini

Thanks very the color that, Herman. for much on

a As license a it is bank to Finbond does for make U.S. that obtain follow-up, or an sense option… not

Herman Kotzé

think… I

Stephen Ranzini

To demerge its its South U.S. operations African operations? from

Herman Kotzé

separated, in logically, those think, longer we But South and would that sense ultimately, But being is account. make in that a two take considerations part would African have control it company, obviously, of have some step businesses make to sense also to other term. holding I the my into exchange a opinion.

Stephen Ranzini

that the environment obtain bank open charter I opportunity the been is if My that States United the next know to bank the probably in window observation as a after a in election, And stay the frank. that to XX of last United the be it’s best don’t will is years. States in executive new

Herman Kotzé

So, a that’s be on, eye close Steve. obviously we’ll keeping something

Stephen Ranzini

Great. Thank you much. very

Herman Kotzé

you. Thank

Operator

Mr. question comes Private The who next Investor. from Kaufman [ph] a is

Unidentified Analyst

know like perhaps status I monetize and MobiKwik would of to investment. you the that can

Dhruv Chopra

Dhruv. is This Alan. Hi,

I was with MobiKwik, at strategic new again, investment entry to us and time, over us think, So, rationale make help look yes, penetration sizable we for the market. would a and to market that. But, into that

events. an at they in the of in So, would have at cooperation. close early we’re events to that we Those events that But, plans in the do for liquidity IPO. long sorts now, look can we innings time. to of objective have working term, are according still and certainly monetization And

Unidentified Analyst

or be consider going five months? year, it of period in they Is IPO? the or will six time years Over what to

Dhruv Chopra

about ‘XX, talked India ‘XX. probably to the I press ‘XX, think, is in what according they’ve to

Unidentified Analyst

very you much. Thank

Dhruv Chopra

Sure.

Operator

comes question Mr. P.J. from next The

Solit of Potomac Management. Capital

P.J. Solit

And earlier, rebuilding some little can the at a not previously, the you focused and from But to now. X, areas because well, forward two card European a EasyPay in better to this think you is, on $XX think, look growth is worse? question that going next the outlined or or $XX quantify economics targets. business EasyPay million divestitures apply at focus then of on that of we those you a have operations you just bit get to, getting ultimately valid ramping like still million like million economics I do so the over liquidity we it was card guess, for as you assume your account period X, base I shifts can EBITDA my Finbond to years? and Africa towards the focus opportunity that sense could main to opportunity, multiyear are X as the as that So, types it Everywhere, few I’m we that about of when was what have was something similarly, had to European subs, and in

Herman Kotzé

Sure.

at things, the I previously great economics first side of the up. still held African that stack South Looking before think, heist, account the up we

those expect because environment. as African better, obviously, top economics I we Finbond the is within share we in broad in economics equity and the these marginally we service effectively services the that earn transaction have South provision you including provider, be measure, the would or In rollout. financial profit have we can -- on share specifically put the fees think to that the that the forth bank of we Finbond. fact, fees accounted a accounts There on usual addition always But, as of of same take the

that launch opportunity, to $XX I is acquiring payment when there metric time, of exactly those only being. to we specific target to -- plus over And say gateway up. a the each get up EBITDA I we to be multipronged, -- but in But, to depend there there ends got opportunities need our the product has and let's obviously expect The focus But, obviously Europe issuing not get next are we will the ramp of medium earn the is the in economic how That's at And the them time, to would the first. When for over components and five couple fast card million see over will It basis. mix us, like years say to card It's it. to mean, to EBITDA. million of opportunity, what three relevant different the opportunities. we'd is a least European sort term. level months. in medium cost $XX

P.J. Solit

Great. you. Thank

Operator

was of you X, concludes On and behalf Thank the for today's much. Ladies NET conference. joining that you final very gentlemen, that question. us. Thank

now your disconnect may lines. You