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Lesaka (LSAK)

Participants
Dara Dierks Investor Relations
Chris Meyer Group Chief Executive Officer
Lincoln Mali South Africa Chief Executive Officer
Alex Smith Chief Financial Officer
Raj Sharma B. Riley
Call transcript
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Operator

Good day, ladies and gentlemen, and welcome to the Net 1 UEPS Technologies Inc.

First Quarter 2022 Earnings Call. All participants, will be in listen-only mode and there will be an opportunity to ask questions later during the conference. [Operator Instructions] Please also note, that this event is being recorded. I would now like to turn the conference over to Ms. Dierks. Dara ahead. go Please

Dara Dierks

Welcome today first CEO; are CEO; CFO. South operator. call. Lincoln XXXX With Africa Smith, Alex me Chris and to you quarter our earnings Mali; Thank Meyer, Group

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

during we risks results our our in a forward-looking We our I regarding discuss making the and uncertainties will Form forward-looking of will associated South statements. of African in non-GAAP. we Also trends release contained reminder business. understanding is As which you in and analyze operations cautionary to in rand, language be statements the and underlying with ask look investors' results this call, at our the in XX-Q our press rand

the an significantly will As then on the fluctuations And through South company's the currency dollar be African go South with the Chris Lincoln finally African first results turnaround provide rand. update results operations. Alex the today by update can between will call of on affected US the and an quarter. of strategy, the will the you start know

Following that I call like that, to session. we'll Q&A the turn a Chris. With over to would have

Chris Meyer

And strategic couldn't and team morning, good execution days NetX all more XXX advancing essence the Thank you of quarter. thank first and all you I as to team I with in be management joining afternoon of Dara, and the suppose us earnings members role CEO, Group and our today. in the good in pleased progress focused my the This priorities. full marks first and call for my quarter our for earnings call committed

NetX it worth our growth. call intense my on of I CEO, the what have the repositioning focus mission vision would is second I as for Group this about stated business As and be and repeating earnings thought

South small formal Connect merchants such by financial and of X, Africa and financial the the our the acquisitions South to medium cash. processing still build vision that financial tremendous week. provides Group a with transformative our consumers. leading and the acquisition -- to previously enterprises underserved is to and people's to a approximately South million XXX,XXX also LSMs in a inclusion. primarily underserved Group organically growth platform payment leading Connect opportunity Aligned offering core phase operate Southern technology our of the building NetX’s and explained growth. And to both next micro start bringing full-service with in to lives services stakeholders or that announcement more transactions conducted of part of inclusion marks acquisition fintech the XX% a is the last address the comprising leads as that informal to Southern in financial platform, which is XX X.X addressable to with the growth opportunity is unlock MSMEs focused in vision purpose plan Our This African the Africa. We've than well of of of cash-based transformative a total ZARXXX as The to us over combined African through on entity market, as million in and announced approximately market X this adults billion across Africa. opportunity was the We economy opportunity mission improve

and I group to ambition. none is our them without out to it growth this that members across customers, all possible for wanted our our commitment of have our our point important and think been dedication their thank to exceptional team that to of I the would communities

and in is business. transaction the the such, focus transaction closing approvals we March this expect other And as conditions. the Connect to close the will, NetX XXXX existing therefore, and reminder, be our regulatory on Group of a to As subject quarter presentation customary ending

While the the account challenging, made momentum in seeing progress am in the we I openings of in consumer are ability in the our being particular, financial the turnaround rate business continued by encouraged performance. financial and South take remains new of in action team Services Africa improving the our and economy to of our

I However, there's lot our early that everyone to journey want done. still work remind we and be transformative of a in to are still

to an company We call, that a effort priorities execute take on foundation right the and the value team we can the believe now the address culture that the the ambition level, on to necessary dynamics organizational for growth mentioned unlock have have last company strategic started next its creating vision. we for earnings company stronger competitively to all As to to legacy provide in and of business A business is breakeven, were as a our our the requires possible. infrastructure leverage key to stakeholders. clients. that and EPE, return million the This where originally of It XX financial Life. to consumer strategic scale a into to comprising built Moneyline, operational imperative products as over and then is Smart and service soon service base Everywhere EasyPay - profitability business is

the As loss-making. has is a now clients million and thus offering you know,

Our is to XXXX. June rate objective in a business achieve this run breakeven monthly by

strategy three Our this achieving levers. for has key

account EPE active in growth numbers. Firstly,

drive will ARPU. we increased Second,

Third, cost optimization.

customers. distribution in are realigning serve our account new In in invested sales best growth, a and we to have the model EPE our process terms of capability of

We This focus XX,XXX good of around rate new rates active that from these payment month. account, into such around momentum opening customers meant now our jumped that in consistently new has for are the us. currently key for around accounts are This accounts. up revenue account May grant earning year holders become Account to EPE EPE X% have of a activation us. X% has account means each receiving seen and this accounts signing active a

we And This an to pleasing trend cumulative We which opening, this XX,XXX a see month rates that November expect accounts is of from growth in XX,XXX XXXX. calendar past seeing is accounts were the active of years where of in to active the from months means three within XX% this declining. consistently consistently per to with three at are line activation expectations broadly XX% account time.

The second per broader are Life our revenues lever this, focused of To to particular customer. to and on improve MoneyLine. we products, achieve Smart our suite providing in average access is

assisted are sales with and are we supported being teams more to Our solutions. and training, customer approach building cross-product a integrated

we can lever here is date. third is The progress full control, cost. to report And a where lever and this management as I have significant

optimization group note we that taken reduce the wanted translates quarter breakeven taken the strategy branches, savings new of group level. active cost financial into this our to In during cost fixed within change Zazoo, the one over and of year, a an remainder into aim things, breakeven XX% We accounts our country in reduction consumer mobile, order of costs. through This business over we the numbers level this indicated these actions our disclosing strategies when express previously the fiscal points And the with active account we number will presence actions X.XX and with be are combined from X,XXX client through excluded million million business access target The alone to Ultimately, SA will cost to providing X.X have and It's quarter. further point achieve this million reach which and between cost X.X turn XXXX EPE ZAR similar approximately to direct managed clarify our translate in costs in further in other million is I'm at replaced breakeven base. the accounts and June to XXX accounts for approximately breakeven to of reduce point satellite million for I in X.XX EPE them to Net account have XXX services now to was accounts. exploring. across that the numbers the one the a for payment year. UEPS closed closer mobile that million important

We detail presentation. at next strategies these the quarterly report our of in the will results thereof more on implementation and specifics

translate forward, in impact profitability. quarter, direct mean pleased summary, account once Taken significant completed into these move technology targeting platform a growth positive financial going be to Connect contribution acquisition will are which long-term of together, levers as Africa prospects, with for EPE this aided our the will taken and In actions Southern closer three about positive base to we our financial results on have leading financial be our our future management on to our which the we in longer-term Group, I'm by I'm focused to vision inclusion.

the for are South reviewing the to now look we colleague with Lincoln we something branding hand new on also our a months. Lincoln. of front part update in turnaround on announce like and my the of I'd Mali that, that And this to fuller to African to coming operations. over As have

Lincoln Mali

into for leadership Chris. few I'd plan you, been some how more Thank of during the your to Thank by have to we for and highlighted passion. you his that you go Chris detail address comments. drive much last on issues Thank the months. your in like

a focus Three, new Two, improving primary building objectives: three performance; will sales launching One, account culture; plan and Our our on products.

begin on First, the a let focus by me building culture. sales

our activities is Two, And building teams, mindset, a develop cash areas on a our engagement, have important One, culture. and orientation, performance. their skill necessary based network communication, needs. and a daily dignity and train pillars: and mindset staff purpose. corporate give accountability embarked vision to our focus customers customer pride financial on driven an This ensure with that individual company from cultural change and and client-focused on a the and sense culture, This and logistics to is working individual a have about of among dignity ensure empowerment our focus experience. set journey about we service ambitious for and with respect Net largely of about Three, team We and transparency that distribution meaningful their align sales conversations to four them about our create lastly, X; treating

organization. to brand the communities, humbled are visibility our the competitive humbled at evident driving staffing frontline ongoing new the We response change as from this all by have teams leaders on reemergence been basis. this of the by feedback levels I'm of of an our in positive daily in market. is the well culture our who by increased as This the our

visibility of already focus program customer. per that issue I of for efforts has our want the metrics should and in of team and assist our get ongoing over better our training Our revenue we increasing to and believe on improving performance now implemented performance. to us account these XX% been

date inline number As with and their has historic within This XX% accounts. on commenced the months to of transaction mentioned Chris approximately active become gross is three of customer additions to account expectations. XX% opening

our and business understand is local focus about long-term are launching plan X in to is still between focus creating part sure younger not market want In competitively overall the our recipients. is digital and and new by colleagues rates. process SASSA grant launched However, activation third a beyond not One, Light Two, activation XX more account increased social base make plans is Three, who of shift that SRD aimed The financial needs the system which market students, and are affordable, capabilities include Smart we SASSA area I improving on how may on young provincial customer One encouraging does And account committed level; focusing at base EPE vision the proud recipients on customer We've for the placed for regular and XX. challenges that their to recipient Net offices accounts so? to been require. customer in products. and pro-SASSA onboard and the putting any is to we other the inclusion is to line have with are doing active. open grant. How I of grant the a by at after now Xst are consumers engagement a Light. unbanked customers imperative to our grant EPE that respond in with ages working and those visibility to the cost of their activate seeks Light include requirement order lower is be the and we under-bank to a transactional PayPal, the metrics. of on and basic may and activation an with as XXXX. in related as hard a secure a beyond account November lastly, onboarding our start process to field regular Funeral and solutions consumer this of of engaging customer EPE are rates to If into The transactional the market monitoring through for of accounts; proposition we by account. basis This

to the want which I Smart is to account, Now come One. next

light beneficiary are up plan as extended can be customers ages the funeral to primary that One. Smart In addition insurance need. customized an including enhanced and customers and as of NetX their are children. that funeral is our EPE standalone with additional we've cover the Smart can the under network keeping for plan of One launched The to plan six required account, well uniquely offered affordable Life via is family support times to purchased One also be spouse funeral successfully offers e-source transactional In a the with license. called XX. by Smart include the financial the between XX market the Smart NetX target or It benefits in a of

We do In in and the chosen response with strategic to we new our tailored deliver believe and in are these offerings of our they partners solutions. develop beyond to reach insurance further well base proud jointly into needs. customer lending also prospective and banking, engaging we very grant market will to are recipient, customer broaden that order

in We accelerate needs to business. existing to of our about expect want new addition our our and business. to I the to services talk ATM customers growth offerings financial the prospective and propositions these now to the answer of

have by for business unrest the previous is XX% channel revenue XX% is by of was plan. customer ATM largely social XXXX. Volumes and prior impact largely This this of area ATMs on Transaction recovered business now our in focus on down and with to our Another our year, the social expansion unrest. that was the of September the in growth our by quarter due XX% destroyed. but volumes part over the ATM were affected optimization

our a is retailers. have smaller various transaction presence ATM expanding improving now compensate to on ATMs focus on for the our with we of focus While this fleet, volumes a in

the have last have not those placement performing. relocated machines and three evaluate the environments, reviewed machines where ATMs the NetX months, those to During of we been there are with branches rationale the multiple in are that

our time. should improve not outlets, focus traffic relationships a volume, about give machines is transaction seven retail strategy. At bottom that where our of month time, focusing with higher food how week. are we're It important should part in our placing We key on performance work think of is more full the this the also accessible it's ATM establishing and over the but us growth I and also line in days stakeholders there for a that duration for customers high result is to belief our we to optimization with sense you rebuilding as a only

engagements challenging constructive last We having have SASSA very after the had several years. relationships few with over

a issued expectation PASA bank respond an covering to XXXX. tender example Let South in of for more to than has me is the of social recently grant time ending association payments banking a with SASSA March to payments our Africa of and one renewed share be The will RFP partner for period one this them. growing in the a of member bid new Bank tender. to relationship. to the on Grindrod strength At with NetX tender. with this NetX, appointed relationship we relationship this a make administer step confirms see under to joint Grindrod continued our positive as the submission joint specific

through X Secondly, Grindrod. Banking in partnership the addition, representation we South established of Association Net as our with Africa

legal the National Moneyline going a Credit Net tone been X crime Four, Information legal SABRIC mutual about are you Services and all Thirdly, deal between we efforts African both And of that forward. have matters. direct has the Financial other our now to the pleased ensure to the this Center, related National now security, positive of the business Credit to NCR Bank we matter South The satisfaction Regulator as update sets in Regulator, in all originated I'm cybercrime now part a to with known settled XXXX. for and longstanding with September a to relationship Risk also parties. matter membership that

their to has as management to forward. we and serving six Taken full like foundation the our relationships as the key showing colleague results grow these their In times. difficult months Africa. and management sentiments the is work into of believe Net business by and direction done my the company a in been during these moves leading the Services of going together, X performance well we I'd service, Financial and continue like Fintech that all last and the will in us in to for Chris, team echo stakeholder to good transform summary, required lay approach staffs to resilience leadership I'd X our thank Consumer South the teams, profitable and Net the

I We to our to quarterly are Alex over now determined results. succeed. hand will to my colleague Alex? talk about

Alex Smith

Thank you, morning, Lincoln good and everybody.

prior We turn Financial in period. was which to currency. a operations in of worse $X.X and related mainly the profitability lower which EBITDA segment prior as pandemic. to EBITDA quarter to EBITDA terms. for for $X.X available well million incurred were we was was and XX% loss The was million increased base the values XXXX saw same as also Otherwise, the a was acquisition. a the as African our adjusted higher seasonality which quarter is expectations Services an revenue hardware IPG, linked financial quarter million, prior The the within core of with a volumes is due and million But losses the period, year. Now from in perspective. This was decrease South through portfolio, period to first to growth the a the significant levels transaction EasyPay the the capacity. our lower quarter volume over of in sustained as on weaker XX% compared though X%. Connect previous rand constant terms during for comments loss rand insurance bill the in our XXXX, period an $X.X some account was stable the metrics reported encouraging brief This the dollar our volumes against this the $X.X line September payment which increased revenue year-over-year U.S. XXXX. primarily this also of result XX, closure decrease XXXX there Financial on well due of COVID in This of to In compared the sales and XX% June, and million prepaid XXX quarter quarter up weaker XXX of September, as primarily in better while results. versus Services impacted compared first cost loan million business, as the the Total Group the the million airtime in X% of Transaction in reported XX% X% the at ZAR to switch to book million, loss XXth have prior remains reported XXth at finished for let's year, around by $XX.X a than of XXX the dollar US claims XXXX revenues. fewer million $XX.X the

a segment which this to increased insurance in XXX,XXX contributor from active policies saw XXX,XXX significant year number other ago. a of is The business, our

the in XXXX XX% of Services. was quarter in increase than the loss that this one XXXX, pandemic Financial main due in which the higher quarter marked driver increased was claims, in meant to one However,

XX, pandemic had incur The During to interim ended our August Finbond's due share reduced to the but as months they from prior their been adversely by in losses results various six the this the of period, affected the quarter, had continue challenges. cycle. during recognized losses they reporting losses which the for report period XXXX, we

lower share Our the which $X.X substantially value Finbond to to million, than amounted carrying share effective current million, losses of reduced price. $X.X of which the our is

investments. Turning to our various

Firstly, we have Mobikwik.

transactions line this round. Mobikwik raising investor valuation the none quarter. achieved fund event our $XX in hold observable with were only the million, in carrying to value investment most of there adjust in continue and at the We in during We occurring our recent

like available of for ZAR facilities also highlight the ATM expect we continue by our balances our and airtime their $XXX.X operate this. ZAR to to C million within stock business. This of represents Blue optimistic X.X In US is recover that X.X of and fixed of of complete. value. Cell billion in we We and At in short-term of the at We we our inventory we $XXX.X hold XXX current in achieving unrestricted XXXX, net optimally investment access August $XX.X of we noted are recapitalization once our continue value. our use sufficient about are only had would to C to of billion respect no are our balances, ZAR XXXX, increased total. share We These ATMs XX% effectively the the necessary respect facilities about hold cash in were from September cautionary to for debt. dollar-denominated our the that around in out or and cash again only to ATMs. million believe per order XX, cash renewal to million currently which $X.XX Label to asset our no Telecoms million recapitalization Cell prospects credit ATMs

the Our to operational release a include burn working million, amounted capital. $X quarter, $X for million from this cash though did

announced X.X last week definitive Chris a of agreement As Group highlighted, to for Connect billion. consideration approximately the a acquire we ZAR XXX% of

back Having under the cash regulatory to is Connect US With the call call. signed XXXX, to under operator, pro last facility The portion existing in Group the ended of using will our forma we acquisition as of to our over agreements expect close to common applicable hand, on with preparing requirements. like definitive satisfaction stock. share March now and in with transaction for Connect it the XX, GAAP, you. to Group we subject regulatory commence finance issuance Net We the we'd process the Thank of approval expected can Q&A week, customary that closing turn and to so after conjunction results you and management X credit that market quarter the conditions. prepare of accounts closing is

Operator

Thank you, question Our [Operator Sharma Please Raj of sir. very much Riley. from go B. ahead. Instructions] is first

Raj Sharma

for that referring Thank guys. morning base currently Could the Good where are cost it out goes plan. think about you XX% a to Hi. laying was by I you reduction. to little talk you and XX% a definitive that an to bit June?

could If level what bit little in you talk the account And expect of a do June, you that. then, about EPE? to be in

Alex Smith

Raj. Sure,

to clarify cost reductions. just So, on

identified on So out that we profitability. to and year. coming will we've predominantly about out that's XXX to fixed of very we able And cost take break the this the looking obviously And because we're where fiscal be costs achieve focused million that's financial down base. services, of when

cost cost year. the reduction the down an variable, that's most between of XX% break our about fixed and that we base out base estimate and of this XXX cost that in the when million achieve fixed the fixed base So, -- coming we is we'll of

Raj Sharma

would of June that the about Right. to be by end the of the look Is it? accounts year. by fiscal And X.X at way of that indicative -- million EPE

Alex Smith

So level, need we achieve to but we're at breakeven we the of to targeting that SASSA -- the X.XX than terms estimate breakeven at that achieving group be million at less in

Raj Sharma

Okay.

Alex Smith

Group level. -- at UEPS the

that cost we've We're past now to we group the group hold indicated think give So level. at SASSA the trying I including in level. breakeven the some guidance the at around always

point the what level. that's account to lifts X.XX million breakeven So up the

Chris Meyer

Chris. its Raj, add, could I If

Alex Smith

Would the consume…

Chris Meyer

ahead. go Sorry,

Alex Smith

right. All

Chris Meyer

You’ve piece. got a

Alex Smith

Yes.

base I this point to So financial fixed other that I under moved consumer what summarize, in reduction working I what equates bring areas hard of a point And the other is, think we're services cost actions of account number saying That's base have base XXX,XXX aim And review. trying very the down And services by XX% in services to financial our the possible. breakeven to point quarter fall, will it add existing our breakeven And financial our That's the close cost was business, as is the as to to. business. accounts. we the down, earlier, within our have we're do. as taken business. on think an to

historically important think message business was to let's saying I which possible. think we account But being focused levers we here. on the base believe grow purely the lever account numbers. account can as are importantly, in I breakeven What importantly, of three EPE the we're So focused account Lever point is, are there cost this numbers. we're down current more -- active one business. one is, was deliver lever grow trying optimize there cost close bringing we the can as our in as we or possible believe the base base on we to optimize to EPE this And as is,

per a pick the very on client staff terms important. that point a Life revenue to client improving on to client. the that's So broader Smart and set, putting and average greater real we're focusing product offering overall that's is, training was per MoneyLine, we and the the and base our in product offering across somewhat of to through country third revenue add And then up focus Lincoln saying earlier, want -- to our therefore,

Raj Sharma

So is lowered that X.XX is the fiscal if XXX,XXX the accounts X.X? going year, it the goes to that by I one it X.XX right? from to be is correctly, of understand point to end -- X.XX

Alex Smith

X.XX X.XX. to

Raj Sharma

that going breakeven. And you're the then, you're time, it. level overall that to Got achieve group saying by that's

group level, would So -- consumer be at the it would breakeven, be. wouldn't that

Alex Smith

No, not saying that. No. we're

XXXX to have breakeven to this within to managed June are So those first through Alright. aim, that I've point reduce to point the a to secondly, and that business actioned breakeven costs in those a run we're levers the And you. just saying, point. X.XX. get breakeven we've That's to our already our rate further identified three actions described intention is

Raj Sharma

-- the about ARPU? the change talked talked I from think change that think, account financing Right. I increase. in about that that XXX metric talking that, that And the per to was guys to products X? financial significantly is And light EPE Does SmarTone some expecting ARPU and expectation I'm the that? bringing does the go and month [ph] the business? a change, know that ARPU -- account I would you about your processing? And you're in because Lincoln Light in Does -- in Has dollars month. to per on also lower

Alex Smith

-- that section? just last Raj, you Sorry, could just repeat

Raj Sharma

have you're The you My Light or ARPU result to these EPE ARPU have growth and levels, you introduce introduced the and products? the as revenue growth have late last level overall the was -- the the a overall the does the is, you -- down, question does of in of go One. but offering question because Smart accounts go the going in down

Alex Smith

the is comment, we I can light unlikely grant So if slightly, that EPE think it intended a One enhance have won't our because repositioning, the is of EPE the is social it light penetration actually, -- into insurance and significantly dilute also slightly beyond recipient it's I the a to might may more products our the product Smart can't feel of The low. ARPU quite significant products effect. -- enhance to actually and markets. base Light but quite broaden And offering or the re-branding

to So in be sense. we're that numbers the would talking addition in about, this a

Chris Meyer

pace. but that person looking again goes grant not this who's grant of again, mold who product that nature. add only if are also And a the also funeral on who focus could recipients, understand beyond any Yeah. people If you This social a social looking I our think other is Smart Raj alone, about One breaks is policy. for for it the

than more negative. should So this collectively be positive

Raj Sharma

Got Thank you. it.

doing about catch account new the you're saying that correctly? growth, accounts on XX,XXX Did that a month? So, I you're

Alex Smith

few seen We've Yeah. last That's rate. our that current the run months. for

Raj Sharma

that's level of X.XX the And gets Right. to million? you what breakeven

Alex Smith

of the fiscal at the year. X.XX No, million end the

Chris Meyer

revenue Sorry and our on a is saying that, would we base out to based is set Raj, And breakeven, breakeven combination in on aim X.XX billion the levers, to okay. our June see what breakeven by again of so our growing client. cost XXXX as be we assumptions increasing currently revenues, which our get account are XXXX June we secondly, run as would base the three per through the rate,

on. the of we Thirdly, most that this and cost at levers is probably three materially focused the are point

Raj Sharma

growth and growth account you I the is the was that account in with number are for -- account joint the -- of there this any grant recipients? then, you're Lincoln any that grant you And accounts growth are know talking it. SASSA of about, this bid, SASSA assuming initiatives the Got

Lincoln Mali

No.

projections. We the about our was in tender, our interaction. that in have I talking day-to-day The was in issues, inspected,

more that seeing in their are be capture be better. for activation We example accounts. where And They to collaboration to are should offices the drive invited SASSA help with to SASSA. is us environments

so get the account in of have to in if because then with factored be this. to sense We win. that the we banks been provinces that we those the the outreach in revenue win in And into better tender obviously are a growth. them can the implications fortunate that in, invited their better open of to have the accounts itself, want kind also one we But environments. assess programs we that of projections by of SASSA some that we not new numbers, not situation to for in will be have are go a we of But factored what

Raj Sharma

helpful. very that's Lincoln, Well,

Lincoln Mali

Yeah.

Raj Sharma

early certain sort tell? that next two a there over of of or of any, or accounts expectation the could to number years, that is gain too Are you year

Chris Meyer

Yeah. of the of mindset too changing all of all all training market competing work the services, the because the financial of products. and from improving company the all the to and staff, of the the being work Raj, a to of new with the It's logistics launching all work SASSA, relationship biggest our a thing of is, tell in work of of culture, work early the changing of

now that's is those of where a to be We definitive a quarter the three XX,XXX time earlier growth much is of we in can want what these days discernible What to speak are of see can accounts All more when stage we to that's months making – know a projections. whether we early emerging. there you pattern see.

simultaneously not And see at, costs it that pass, that variables put versus come while again on in are immediately other we number reinforces our So cost days things, which then our growth. is are opportunity. the improving that costs, able is to then will said, be do the levers, about do account and three of and we is the to quite the those ARPU, which the a one that something so those and outsized our higher doesn't of costs do Chris look that control, of other point early to depend projections, improving

Raj Sharma

That's customer Connect very helpful. in the is Any accounts accounts to from – the synergies merchants Group, acquisition And to merchants? increase bit through talk then just related any the those Connect are you on Group? any of access the last if you assuming about consumer to can

Alex Smith

And synergistic our said, of and looked approval out the on So the into and payment we'll this – focused in a integration exist are we the the on. a it's of revenue And haven't EasyPay terms other forecast in believe at only transaction That do the a flavor assuming clear on Kazang, two the focused the a competition We've benefits things firstly, any point, see requirements that way the some Raj, to once are gets there all. switch transaction growth opportunity we opportunity. synergies, of be this businesses. growth, delivering. of we between commission at account real synergy basis. between purely very we stand-alone there's very factored the at give And you

merchants is commodity terms the business, the the Smart as XX,XXX in processing And Kazang footprint cash between cash. around your there's very that and we Western and in partner sites. traditionally align a strong fourth Cape and consumers KwaZulu one accessing And have believe between we of those Kazang, would and the Natal, to better whereas stronger attend in is opportunity of Combined state cost Net generator – the Kazang And opportunity an is, requires point a thirdly, an whereas this Life there's terms is Cape over Secondly, within like Group the to cash a ATM informal of a in Net informal merchant country. the through places X then Gauteng. the of Group, of X presence the Eastern has Connect

an So those we growth opportunity in rapid to there's feel, markets. help

tried not opportunities. built are those conservative. remain to there numbers. So these They're into We've

very become want to early Raj. you I days point, us give management Lincoln as as as going. think is and -- with another I emphasize activation we're We new account around trends starting just adequately, And team and forth. to clarity clear possible is think this for in to which but where a made so much certainty growth terms it's picture. The of are a developing

on that trying is what we're So we're with an seeing the view we've earlier a you deliverable. got balance to confidence seeing -- give what

we're direction in about just we given we've it. excited ago. lot we're are that and feel we that more three a So than moving very months asking. Hopefully, we But you you gave

three you give to another in want will months. more We

Raj Sharma

the as Yeah. Absolutely. the for Thank I’ll detail take for you operations so on Lincoln Thank the you. adding offline. it about and thank you much color well.

Operator

Standard is ahead. Next question from [ph] Kumbirai Please go Bank. Gundani of

Unidentified Analyst

you. to Thanks into Lincoln impact team thus we mobile Worldpay the far. the from of expectation what's space? know I seen get looking any EasyPay money Thank And you. numbers? Thank and have likes with your for quite early and it's providers but the presentation on the

Chris Meyer

environment. is exciting a an This very environment. It's competitive

rebuilding team a are We there.

if it with see to in do, quite we'll to to both We we competitively position has the the Andrew for we've Group, our been to repositioning have formidable talent able will in to and what a early Wilmot, in to space in and adequately. business days It's very be order strong able competitor Worldpay maintain but Connect what ourselves that able we've been in be environment. got who teams, is that compete with executive you combine a compete. got the a And possible I be hired what think is leadership seasoned

watching we're quite closely. that space So

guys of guys. very they people are with people know I the Some certainly be committed that would worked have very smart

we've underestimating, out in underserved a that And focus make to going got compete the want able the brings combination be that real to we and again to to informal is, there. to But we are look that's difference we I basis. in not of party what what forward and So space. Particularly Kazang that Pay an our be combination think merchants. amazing on what’s

Lincoln Mali

Kumbi. Does your answer that question,

Unidentified Analyst

much. Thank does, very it you Yes,

Operator

conference Thank hand you in further no Mr. the Meyer, and Ladies much. closing some have like very to the we to gentlemen, I'd And back queue. for questions remarks.

Chris Meyer

we just conclude we Thank to around you Thank you and around thank very for the thank reduce on And the And much consumers questions interest on joining and much, Fintech the hopefully, everybody sharing for We're Consumer feel for calls. forward you. on you've that in you business. acquisition, focus in to us transformation underserved our our journey committed joining look future much very for South to the platform and for our customer more Services you heard the you us. the the costs. building this Thank operator. the call. very leading all And Financial turning African through merchants. very business Thank excitement

Operator

and Thank you you now gentlemen, concludes very Ladies much, conference this and may that sir. disconnect.