's questions to Lesaka Technologies Inc (LSAK) leadership • Q2 2025
Question
An analyst requested details on Lesaka's current debt structure, its refinancing plans, and the primary drivers of its recent cash flow performance.
Answer
CFO Daniel Smith detailed that the ZAR 3.8 billion gross debt stems from acquisitions (Connect Group, Adumo) and facilities for the consumer loan book. He announced a comprehensive debt refinance is underway and expected to close in the current quarter to optimize tenor and cost. Smith explained that post-monetization of the MobiKwik stake, the pro-forma net debt-to-EBITDA ratio would be ~2.1x, near their 2.0x target. He attributed the quarter's cash flow dynamics to strong underlying generation (ZAR 269M), offset by high interest charges, funding for the consumer loan book (ZAR 149M), a bulk VAS purchase (ZAR 69M), and seasonal working capital changes.