Kaspi.kz JSC Sponsored ADR RegS ((KSPI)) has held its Q4 earnings call. Read on for the main highlights of the call.
Kaspi.kz JSC Reports Strong Growth Amidst Macroeconomic Challenges
Kaspi.kz JSC’s latest earnings call revealed a robust performance across its primary business segments, with notable growth in its marketplace and strategic expansion through the acquisition of Hepsiburada. Despite these achievements, the company acknowledged potential hurdles due to macroeconomic challenges, such as interest rate hikes and currency volatility.
Strong Growth Across All Platforms
Kaspi.kz reported impressive growth across its platforms, with Payments TPV increasing by 30%, marketplace GMV by 39%, and fintech financing volumes by 21%. The company’s consolidated revenue and net income both rose by 28% in the fourth quarter, showcasing the strength of its diversified business model.
Marketplace Segment Success
The marketplace segment emerged as the fastest-growing business for Kaspi.kz, with GMV soaring by 39% and revenue by 43%. The e-Grocery sector was a standout performer, recording a remarkable 97% increase in GMV, underscoring the segment’s potential for future growth.
Introduction of New Products
Kaspi.kz introduced innovative products such as Buy-Inventory-Now-Pay-Later and business deposits, which quickly gained traction. The deposit service was particularly successful, with 77,000 merchants adopting it, highlighting the company’s ability to meet market demands.
Hepsiburada Acquisition
The strategic acquisition of Hepsiburada marked a significant expansion for Kaspi.kz, extending its market reach to Turkey. This move taps into a market with over 85 million people and a robust e-commerce foundation, potentially driving future growth and diversification.
Interest Rate and Macro Environment Challenges
The unexpected rise in interest rates at the end of 2024 posed challenges to Kaspi.kz’s fintech bottom line growth. Additionally, the macroeconomic outlook in Kazakhstan remains uncertain, with potential challenges anticipated in 2025.
Currency Volatility
The Kazakhstani tenge’s volatility, with a 6% depreciation against the dollar compared to 2024, affected Kaspi.kz’s financial reporting in dollar terms, presenting another layer of complexity in its financial management.
Regulatory Discussions and Challenges
Ongoing regulatory discussions in Kazakhstan regarding VAT and national payment networks could impact Kaspi.kz’s operations. The company is actively engaging in these discussions to navigate potential regulatory changes.
Forward-Looking Guidance
Kaspi.kz provided optimistic forward-looking guidance, projecting around 20% bottom line growth for 2025, excluding its operations in Turkey. The company emphasized its focus on transactions, with an impressive 73 monthly transactions per active consumer, and highlighted the strategic importance of its Hepsiburada acquisition in tapping into Turkey’s large market.
In summary, Kaspi.kz JSC’s earnings call highlighted strong growth across its platforms and strategic expansion into new markets. While macroeconomic challenges such as interest rate hikes and currency volatility pose potential hurdles, the company’s forward-looking guidance remains optimistic, reflecting its robust business model and strategic initiatives.
Trending Articles:
Questions or Comments about the article? Write to editor@tipranks.com