Jared's questions to Lesaka Technologies Inc (LSAK) leadership • Q1 2025
Question
Jared asked for clarification on the increase in group costs and the reasons behind the significant working capital outflow during the quarter.
Answer
CFO Daniel Smith explained that group costs rose to ZAR 53 million due to new hires and platform scaling expenses, guiding for full-year costs to be around 20% of total segment adjusted EBITDA. He attributed the large working capital outflow to two factors: the payment of annual staff bonuses and a timing difference from the previous quarter-end falling on a weekend, which delayed the settlement of payables to VAS partners into the current quarter.