Lesaka Technologies' new brand after rebranding in its third quarter to end March 31.
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Lesaka Technologies, the fintech that is acquiring Bank Zero, increased its adjusted earnings per share by more than 200% in its third quarter and revised its earnings guidance upwards.
“I am pleased to report another strong quarter for Lesaka as we continue to improve our profitability. We achieved group adjusted EBITDA growth of 45% and adjusted earnings per share of R1.80. We have built a diversified platform, with multiple levers of sustainable growth that position us exceptionally well for the years to come,” said Lesaka chairman Ali Mazanderani.
Operating income was up by 804% to R65.01 million from R7.19m in the same quarter a year before. Net income turned around from a R409.7m loss in the third quarter a year before to a R8.38m profit.
The fintech provides financial services, software, and other business services to Southern Africa's underserviced consumers and merchants.
The company also revised upwards its guidance for the 2026 financial year. Net revenue is expected to be between R6.2 billion and R6.5bn, with group adjusted EBITDA (earnings before interest tax depreciation and amortisation) between R1.25bn and R1.35bn. Adjusted earnings per share is expected to be between R5.50 and R6.
The guidance excludes the impact of the announced acquisition of Bank Zero, which is still subject to regulatory approvals and other customary closing conditions. The fintech group is expecting that opportunities will flow from the R1.1bn acquisition of Bank Zero that was announced in June last year.
The previous guidance forecasted adjusted earnings per share to be at least R4.60, which implied, at the time, a year-on-year growth of greater than 100%. The previous net revenue target was between R6.4bn and R6.9bn, while the previous group adjusted EBITDA target was expected to be between R1.25bn and R1.45bn.
During the quarter, the group rebranded to the One Lesaka brand. It is the second biggest distributor of SASSA grants after Capitec. Lesaka EasyPay provides banking and financial services to grant recipients via transactional accounts, cards, and digital payment services. It also offers credit and other financial products to this customer base.
Lesaka is listed on Nasdaq in th US and on the JSE. On Thursday afternoon its share price was 2.72% weaker at R78,80 per share, although the price still slightly higher than R77.03 that it traded at a year ago.
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