Luke Holbrook

Luke Holbrook asked about Hepsiburada's investment strategy in Turkey, specifically regarding peak losses, the $300 million Rabobank investment for new products, and Kaspi's plans for e-grocery offerings in the Turkish market amidst increased competition.

Answer

Mikhail Lomtadze, Chairman and CEO, Kaspi.kz, explained that Kaspi will manage the Turkey business around EBITDA breakeven, continuously investing in consumer engagement, faster delivery, and technology. He clarified that the $300 million Rabobank investment is for a wider range of financial products, with regulatory approval pending, and is already factored into dividend plans. Regarding e-grocery, he stated Kaspi is focused on e-grocery (stuffing fridges) rather than quick commerce, guided by consumer demand, and has no immediate intention to move into quick commerce in Turkey.

Luke Holbrook inquired about Hepsiburada's investment strategy in Türkiye, specifically if 2026 would see peak losses, the nature and timing of the $300 million Rabobank investment, and Kaspi.kz's plans for e-Grocery offerings in Türkiye amidst increased competition.

Answer

Mikhail Lomtadze, Chairman and CEO, explained that the Türkiye business would be managed around EBITDA breakeven, with investments focused on consumer engagement, faster delivery, and technology rather than 'losses.' He noted the $300 million Rabobank investment is capital for wider financial products, pending regulatory approval, and is already factored into dividend plans. Regarding e-Grocery, Mr. Lomtadze stated Kaspi.kz is focused on e-Grocery (household items) rather than quick commerce, guided by consumer demand, and has no immediate intention to move into quick commerce in Türkiye.

Luke Holbrook asked for a detailed bridge to the significant H2-weighted revenue growth guidance and questioned the reasons for the Q2 growth deceleration in the Higher Education segment.

Answer

CFO Sally Johnson attributed the H2 weighting to known factors: new contracts launching in Assessments & Qualifications and Enterprise Learning, the lapping of a prior-year school loss in Virtual Schools, and more favorable comps in English Language Learning. Tom ap Simon, President of Higher Education and Virtual Learning, explained the Q2 Higher Ed slowdown was due to a smaller adoption cycle in College and Career Readiness, ramp-up time for a new sales team, and temporary delays in state-level purchasing.

Luke Holbrook of Morgan Stanley requested a detailed bridge for the H2-weighted revenue growth guidance, particularly for Q4. He also asked about the reasons for the Q2 growth deceleration in the Higher Education segment.

Answer

CFO Sally Johnson attributed the H2 growth acceleration to new contracts in Assessments & Qualifications, the anniversary of a Virtual School loss, and easier comps in English Language Learning. President of Higher Education, Tom ap Simon, explained the Q2 Higher Ed slowdown was due to timing in the College and Career Readiness business and delays in some government spending.