Operating Segments

9 Months Ended

Mar. 31, 2025

Operating Segments [Abstract]

Operating Segments

18. 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.

Change to internal reporting structure and re cast of previously reported information

The Company’s chief operating decision maker is the Company’s Executive Chairman. During the second quarter of fiscal 2025,

he changed the Company’s operating and internal reporting structures to present a new segment, Enterprise, separately. The chief

operating decision maker has decided to analyze the Company’s operating performance primarily based on three operational lines,

namely, 

 (i) Merchant, which focuses on both formal and informal sector merchants. Formal sector merchants are generally in urban areas,

have higher revenues and have access to multiple service providers. Informal sector merchants, which are often sole proprietors and

usually have lower revenues compared with formal section merchants, operate in rural areas or in informal urban areas and do not

always have access to a full-suite of traditional banking products; 

(ii) Consumer, which primarily focuses on individuals who have historically been excluded from traditional financial services

and to whom we offer transactional accounts (banking), insurance, lending (short-term loans), payments solutions (digital wallet) and

various value-added services; and

(iii) Enterprise, which comprises large-scale corporate and government organizations, including but not limited to banks, mobile

network operators (“MNOs”) and municipalities, and, through Recharger, landlords utilizing Recharger’s prepaid electricity metering

solution.

Reallocation of certain activities among operating segments in Q2 2025

The change in our operating segments during the second quarter of fiscal 2025 included the separation of Enterprise out of

Merchant. The Company has also allocated the majority of Adumo’s operations to Merchant, with a smaller part of its operations

focusing on the provision of physical and digital prepaid and secure payout solutions for South African businesses with large individual

end-users being allocated to Consumer. Previously reported information has been recast.

The Merchant segment includes revenue generated from the sale of alternative digital payments (select prepaid solutions, supplier-

enabled payments, international money transfer and other) and card-acquiring services to informal sector merchants. It also includes

activities related to the provision of goods and services provided to corporate and other juristic entities. The Company earns fees from

processing activities performed (including card acquiring and the provision of a payment gateway services) for its customers, and rental

and license fees from the provision of point of sales (“POS”) hardware and software to the hospitality industry. The Company also

provides cash management and payment services to merchant customers through a digital vault which is located at the customer’s

premises and through which the Company is able to provide the services which generate processing fee revenue. From July 1, 2023,

the segment includes fees earned from transactions performed by customers utilizing its ATM infrastructure.

18. Operating segments (continued)

Reallocation of certain activities among operating segments (continued)

The Consumer segment includes activities related to the provision of financial services to customers, including a bank account,

loans and insurance products. The Company charges monthly administration fees for all bank accounts. Customers that have a bank

account managed by the Company are issued cards that can be utilized to withdraw funds at an ATM or to transact at a merchant POS.

The Company earns processing fees from transactions processed for these customers. The Company also earns fees on transactions

performed by other banks’ customers utilizing its ATM (until June 30, 2023) or POS. The Company provides short-term loans to

customers in South Africa for which it earns initiation and monthly service fees, and interest revenue from the second quarter of fiscal

2025. The Company writes life insurance contracts, primarily funeral-benefit policies, and policy holders pay the Company a monthly

insurance premium. The Company also earns fees from the provision of physical and digital prepaid and secure payout solutions for

South African businesses.

The Enterprise segment provides its business and government-related customers with transaction processing services that involve

the collection, transmittal and retrieval of all transaction data. Through Recharger, Enterprise offers landlords access to Recharger’s

prepaid electricity metering solution through which Enterprise earns commission revenue from prepaid electricity voucher sales to

tenants recharging prepaid meters. This segment also includes sales of hardware and licenses to customers. Hardware includes the sale

of POS devices, SIM cards and other consumables which can occur on an ad hoc basis. Licenses include the right to use certain

technology developed by the Company.

The reconciliation of the reportable segment’s revenue to revenue from external customers for the three months ended March 31,

2025 and 2024, is as follows:

Revenue

Reportable

Segment

Inter-

segment

From

external

customers

Merchant

$

103,001

$

564

$

102,437

Consumer

24,096

-

24,096

Enterprise

9,444

307

9,137

Total for the three months ended March 31, 2025

$

136,541

$

871

$

135,670

Merchant

$

111,801

$

954

$

110,847

Consumer

17,904

-

17,904

Enterprise

11,322

1,879

9,443

Total for the three months ended March 31, 2024

$

141,027

2,833

138,194

The reconciliation of the reportable segment’s revenue to revenue from external customers for the nine months ended March 31,

2025 and 2024, is as follows:

Revenue

Reportable

Segment

Inter-

segment

From

external

customers

Merchant

$

334,442

$

1,746

$

332,696

Consumer

68,097

-

68,097

Enterprise

30,259

3,018

27,241

Total for the nine months ended March 31, 2025

$

432,798

$

4,764

$

428,034

Merchant

$

341,044

$

2,566

$

338,478

Consumer

50,191

-

50,191

Enterprise

32,710

3,203

29,507

Total for the nine months ended March 31, 2024

$

423,945

$

5,769

$

418,176

18. Operating segments (continued)

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 is working on obtaining a separate lending facility to fund a portion of its Consumer lending

during the twelve months ended June 30, 2025. The Company has included an intercompany interest expense in its Consumer Segment

Adjusted EBITDA for the three and nine months ended March 31, 2025. The Company does not allocate once-off items, stock-based

compensation charges, 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, certain 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 represent 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. Interest adjustment represents the intercompany interest

expense included in the Consumer Segment Adjusted EBITDA. The Stock-based compensation adjustments reflect stock-based

compensation expense and are 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. Effective

from fiscal 2025, all lease charges are allocated to the Company’s operating segments, whereas in fiscal 2024 the Company presented

certain lease charges on a separate line outside of its operating segments. Prior period information has been re-presented to include the

lease charges which were previously reported on a separate line in the Company’s Consumer and Merchant (now Merchant, Enterprise

and Consumer) operating segments.

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

ended March 31, 2025 and 2024, is as follows:

Three months ended

Nine months ended

March 31,

March 31,

2025

2024

2025

2024

Reportable segments' measure of profit or loss 

$

14,569

$

11,902

$

41,511

$

32,710

Operating loss: Group costs

(1,772)

(2,199)

(7,541)

(6,032)

Once-off costs

(2,306)

(907)

(4,599)

(169)

Interest adjustment

890

-

2,478

-

Unrealized Gain (Loss) FV for currency adjustments

114

(121)

(102)

(101)

Stock-based compensation charge adjustments

(2,497)

(2,090)

(7,518)

(5,653)

Depreciation and amortization

(8,429)

(5,791)

(22,928)

(17,460)

Loss on disposal of equity-accounted investments

-

-

(161)

-

Change in fair value of equity securities

(20,421)

-

(54,152)

-

Reversal of allowance of EMI doubtful debt

-

-

-

250

Interest income 

645

628

1,952

1,562

Interest expense 

(5,777)

(4,581)

(16,983)

(14,312)

Loss before income tax expense

$

(24,984)

$

(3,159)

$

(68,043)

$

(9,205)

18. Operating segments (continued)

Operating segments (continued)

The following tables summarize supplemental segment information for the three and nine months ended March 31, 2025 and

2024:

Three months ended

Nine months ended

March 31,

March 31,

2025

2024

2025

2024

Revenues

Merchant

$

103,001

$

111,801

$

334,442

$

341,044

Consumer

24,096

17,904

68,097

50,191

Enterprise

9,444

11,322

30,259

32,710

Total reportable segment revenue

136,541

141,027

432,798

423,945

Segment Adjusted EBITDA

Merchant

(1)(2)

8,103

7,420

25,976

21,827

Consumer

(1)(2)

6,333

3,757

15,071

8,452

Enterprise

(2)

133

725

464

2,431

Total Segment Adjusted EBITDA

14,569

11,902

41,511

32,710

Depreciation and amortization

Merchant

3,111

1,957

8,365

5,861

Consumer

255

179

692

527

Enterprise

89

93

283

308

Subtotal: Operating segments 

3,455

2,229

9,340

6,696

Group costs

4,974

3,562

13,588

10,764

Total 

8,429

5,791

22,928

17,460

Expenditures for long-lived assets

Merchant

2,686

2,802

12,355

7,538

Consumer

120

146

688

312

Enterprise

11

(5)

57

100

Subtotal: Operating segments 

2,817

2,943

13,100

7,950

Group costs

-

-

-

-

Total 

$

2,817

$

2,943

$

13,100

$

7,950

(1) Segment Adjusted EBITDA for the three months ended March 31, 2025, includes retrenchment and reorganization costs for

Merchant of $

0.7

 million (ZAR

12.9

 million) and Enterprise of $

0.3

 million (ZAR

5.4

 million). Segment Adjusted EBITDA for

Consumer includes retrenchment costs of $

0.01

 million (ZAR

0.1

 million) for the three months ended March 31, 2024. 

(2) Segment Adjusted EBITDA for the nine months ended March 31, 2025, includes retrenchment and reorganization costs for

Merchant of $

0.7

 million (ZAR

12.9

 million), Consumer of $

0.1

 million (ZAR

1.5

 million) and Enterprise of $

0.3

 million (ZAR

5.6

million). 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

2.9

 million) for the nine months ended March 31, 2024.

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.