Our opinion on the current state of LSK

Formerly known as Net1 UEP Technologies, Lesaka is now listed on both the Nasdaq and the Johannesburg Stock Exchange (JSE) under the ticker LSK. The company specializes in offering fintech products across several countries. Its unique selling proposition is the universal electronic payment system (UEPS), which employs biometrically secure smart cards capable of real-time but offline transactions, enabling users to conduct transactions at any moment.

For the quarter ending on 30th September 2023, Lesaka reported a 19% increase in revenue (measured in rands) and a net loss of R106.6 million, which shows an improvement from the previous period's loss of R183.2 million. The company highlighted a significant enhancement in its financial performance, stating, "Group Adjusted EBITDA, a non-GAAP measure and reconciled in Attachment B, of $8.7 million (ZAR 162.5 million) representing an improvement of 108% compared to the Q1 2023 Group Adjusted EBITDA of $4.2 million (ZAR 71.9 million). In ZAR, Group Adjusted EBITDA increased by 126%."

The trading volume of Lesaka's shares averages around R4.3 million daily, although there are days when no trading activity is recorded. On 5th December 2023, the company announced a significant leadership change with Chris Meyer set to resign as CEO in February 2024. Further expanding its operations, on 6th February 2024, Lesaka disclosed its acquisition of Touchsides, a distributor of alcohol to shebeens and informal taverns, marking another stride in its business expansion.