Operating Segments

6 Months Ended

Dec. 31, 2023

Operating Segments [Abstract]

Operating Segments

17. Operating segments

Operating segments

The Company discloses segment information as reflected in the management information systems reports that its chief operating

decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, and the countries in

which the entity holds material assets or reports material revenues. A description of the Company’s operating segments is contained in

Note 21 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended

June 30, 2023.

The Company analyzes its business and operations in terms of two inter-related but independent operating segments:

(1) Consumer Division (“Consumer”) and (2) Merchant Division (“Merchant”).

The reconciliation of the reportable segment’s revenue to revenue from external customers for the three months ended December

31, 2023 and 2022, is as follows:

Revenue

Reportable

Segment

Inter-

segment

From

external

customers

Merchant

$

127,870

$

684

$

127,186

Consumer

16,707

-

16,707

Total for the three months ended December 31, 2023

$

144,577

$

684

$

143,893

Merchant

$

120,634

$

-

$

120,634

Consumer

15,434

-

15,434

Total for the three months ended December 31, 2022

$

136,068

$

-

$

136,068

17. Operating segments (continued)

Operating segments (continued)

The reconciliation of the reportable segment’s revenue to revenue from external customers for the six months ended December

31, 2023 and 2022, is as follows:

Revenue

Reportable

Segment

Inter-

segment

From

external

customers

Merchant

$

249,231

$

1,536

$

247,695

Consumer

32,287

-

32,287

Total for the six months ended December 31, 2023

$

281,518

$

1,536

$

279,982

Merchant

$

230,416

$

-

$

230,416

Consumer

30,438

-

30,438

Total for the six months ended December 31, 2022

$

260,854

$

-

$

260,854

The Company evaluates segment performance based on segment earnings before interest, tax, depreciation and amortization

(“EBITDA”), adjusted for items mentioned in the next sentence (“Segment Adjusted EBITDA”), the Company’s reportable segments’

measure of profit or loss. The Company does not allocate once -off items, stock-based compensation charges, certain lease charges

(“Lease adjustments”), depreciation and amortization, impairment of goodwill or other intangible assets, other items (including gains

or losses on disposal of investments, fair value adjustments to equity securities), interest income, interest expense, income tax expense

or loss from equity-accounted investments to its reportable segments. Group costs generally include: employee related costs in relation

to employees specifically hired for group roles and related directly to managing the US-listed entity; expenditures related to compliance

with the Sarbanes -Oxley Act of 2002; non -employee directors’ fees; legal fees; group and US-listed related audit fees; and directors

and officer’s insurance premiums. Once-off items represents non-recurring expense items, including costs related to acquisitions and

transactions consummated or ultimately not pursued. Unrealized loss FV for currency adjustments represents foreign currency mark-

to-market adjustments on certain intercompany accounts. The Lease adjustments reflect lease charges and the Stock-based

compensation adjustments reflect stock-based compensation expense and are both excluded from the calculation of Segment Adjusted

EBITDA and are therefore reported as reconciling items to reconcile the reportable segments’ Segment Adjusted EBITDA to the

Company’s loss before income tax expense.

The reconciliation of the reportable segments’ measure of profit or loss to loss before income taxes for the three and six months

ended December 31, 2023 and 2022, is as follows:

Three months ended

Six months ended

December 31,

December 31,

2023

2022

2023

2022

Reportable segments' measure of profit or loss 

$

11,641

$

9,698

$

22,182

$

16,197

Operating loss: Group costs

(2,011)

(2,256)

(3,833)

(4,556)

Once-off costs

816

(119)

738

(717)

Unrealized Loss FV for currency adjustments

122

-

20

-

Lease adjustments

(678)

(747)

(1,374)

(1,559)

Stock-based compensation charge adjustments

(1,804)

(2,849)

(3,563)

(4,311)

Depreciation and amortization

(5,813)

(5,919)

(11,669)

(11,917)

Reversal of allowance of EMI doubtful debt

-

-

250

-

Gain on disposal of equity-accounted investments

-

(112)

-

136

Interest income 

485

389

934

800

Interest expense 

(4,822)

(4,388)

(9,731)

(8,424)

Loss before income tax expense

$

(2,064)

$

(6,303)

$

(6,046)

$

(14,351)

17. Operating segments (continued)

Operating segments (continued)

The following tables summarize supplemental segment information for the three and six months ended December 31, 2023 and

2022:

Three months ended

Six months ended

December 31,

December 31,

2023

2022

2023

2022

Revenues

Merchant

$

127,870

$

120,634

$

249,231

$

230,416

Consumer

16,707

15,434

32,287

30,438

Total reportable segment revenue

144,577

136,068

281,518

260,854

Segment Adjusted EBITDA

Merchant

(1)

8,693

9,120

16,754

17,013

Consumer

(1)

2,948

578

5,428

(816)

Total Segment Adjusted EBITDA

11,641

9,698

22,182

16,197

Depreciation and amortization

Merchant

2,041

1,799

4,119

3,624

Consumer

179

278

348

523

Subtotal: Operating segments 

2,220

2,077

4,467

4,147

Group costs

3,593

3,842

7,202

7,770

Total 

5,813

5,919

11,669

11,917

Expenditures for long-lived assets

Merchant

2,078

3,652

4,841

7,525

Consumer

120

340

166

968

Subtotal: Operating segments 

2,198

3,992

5,007

8,493

Group costs

-

-

-

-

Total 

$

2,198

$

3,992

$

5,007

$

8,493

(1) Segment Adjusted EBITDA for Merchant includes retrenchment costs of $

0.01

 million (ZAR

0.1

 million) and Consumer

includes retrenchment costs of $

0.1

 million (ZAR

1.3

 million) for the three months ended December 31, 2023. Segment Adjusted

EBITDA for Merchant includes retrenchment costs of $

0.2

 million (ZAR

4.7

 million) and Consumer includes retrenchment costs of

$

0.2

 million (ZAR

2.8

 million) for the six months ended December 31, 2023.

The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per

segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not

have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation

and segment asset allocation is therefore not presented.