LESAKA TECHNOLOGIES INC
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0001562762-24-000130
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0001562762-24-000261
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 2891 previous paragraphs and 2970 current paragraphs.
1412 unchanged; 44 reworded; 1507 added; 1420 removed; 15 previous and 7 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1507)
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10-K for
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and other
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at
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is driven
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purpose
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Southern
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underserviced
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consumers
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(B2C)
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merchants
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(B2B),
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improving
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people’s
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inclusion
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markets
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operate. We offer a wide
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range of
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integrated payment solutions
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including transactional accounts
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(banking), lending, insurance,
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payouts,
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solutions,
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card
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acceptance,
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payments,
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bill
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payments.
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providing
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full-service
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fintech platform in our connected ecosystem, we facilitate the digitization
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of commerce in our markets.
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We experienced continued improvement in our financial and operational performance in the first quarter of fiscal 2025. Revenue
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of $145.5 million
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(ZAR 2.6 billion) was
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at the mid-point of
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our revenue guidance
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and compares to $136.1
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million (ZAR 2.5
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includes
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Removed paragraphs (1420)
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measures.
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our Annual
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terms and other
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As of the date hereof, we have been successfully executing on our strategic objectives in building a leading fintech platform and
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consolidating Southern
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African fintech. We
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experienced continued improvement
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in our financial
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performance in the
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third quarter of
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fiscal 2024 with year-on-year revenue and profitability
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improvements in both Merchant and Consumer divisions.
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Operating income of $0.8 million (ZAR 15.0 million) improved
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145% in ZAR, compared with an operating loss of $1.9 million
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(ZAR 33.2 million) during the third quarter of fiscal 2023.
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EBITDA, a
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of $9.7
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(ZAR 183.3
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million) this
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a 47%
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compared to $7.0 million (ZAR 124.6 million) in the third
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quarter of fiscal 2023. The continued resilience of our business model
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in a
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challenging environment for our merchant and consumer customers demonstrates
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the value our customers place on our services.
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Our mission at Lesaka is
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to enable merchants to compete and
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grow, and to improve the lives of
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South Africa’s grant beneficiaries
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by providing access
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to innovative financial
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technology and value
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creating solutions. We
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achieve this through our
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vision to build
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operate the
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leading full-service
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fintech platform
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in Southern
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Africa, offering
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Reworded paragraphs (44)
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Condition and Results of Operations
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Financial Condition and Results of Operations
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“plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of such
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“plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of such terms
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Performance in our Merchant division has been driven by:
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Performance in Merchant has been driven by:
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in a healthy throughput and margin per device.
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which is reflected in a healthy throughput growth and margin
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this quarter, compared to ZAR 194 million
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this quarter compared to ZAR 154 million a quarter ago (quarter four fiscal 2024.)
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Vaults, effectively “puts the bank” in approximately 4,460
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solutions effectively “puts the bank” in approximately 4,480
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mitigate their operational risks pertaining to cash management and
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their operational risks pertaining to cash management and security.
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offering other products such as insurance and lending. We do not offer the same breadth of service to the SRD grant
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do not offer the same breadth of service to the SRD grant base
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base due to the temporary nature of the grant.
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due to the temporary nature of the grant.
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amended our credit scoring or other lending criteria and the growth is reflective of the demand
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We have not amended our credit scoring or other lending criteria, and the growth is reflective of the demand for our
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lending campaigns and encouraging results from our digital channels during
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lending campaigns and encouraging results from our digital channels.
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results of operations and cash flows.
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condition, results of operations and cash flows.
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reconciling items to reconcile the reportable segments’ Segment Adjusted
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reported as reconciling items to reconcile the reportable segments’
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EBITDA to our loss before income tax expense.
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Segment Adjusted EBITDA to our loss before income
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“Results of Operations—Use of Non-GAAP Measures” below.
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Operations—Use of Non-GAAP Measures” below.
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as higher transaction, insurance and lending revenues,
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as well as higher transaction, insurance and lending revenues in Consumer, which was partially
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Net loss before earnings from equity-accounted investments
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Net loss before earnings (loss) from equity-accounted investments
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for a description of key trends impacting our revenue this quarter.
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trends impacting our revenue this quarter.
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Depreciation and amortization expense decreased by $0.4 million, or 2.4%, and in ZAR increased by ZAR 16.0 million or 5.1%.
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Depreciation and amortization expense increased by $0.4 million (ZAR 3.5 million), or 7.2%
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In the ZAR, the increase was due to an increase in depreciation expense related
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(3.2%). The increase was due to an
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In the ZAR, the increase was due to an increase in depreciation expense related to
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increase in depreciation expense related to additional POS devices deployed
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We did not record any changes in the fair
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We did not record any changes in the fair value of equity interests in MobiKwik and Cell C
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quarter of fiscal 2024 compared with comparable period in the prior quarter.
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the first quarter of fiscal 2025 compared with comparable period
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28% to 27% from January 2023 (but backdated to July 1, 2022), the tax expense recorded by our profitable South African operations,
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by the tax expense recorded by our profitable South
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assets recognized regarding net operating losses incurred by these entities.
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tax assets recognized regarding net operating losses incurred by these entities.
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of our South African businesses and
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South African businesses and
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to their customers through distribution
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to their customers through distribution channels
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growth in the number of devices deployed.
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in the number of
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Unrealized loss FV for currency adjustments
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Unrealized (gain) loss FV for currency adjustments
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As of March 31, 2024, our cash and cash equivalents were
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cash and cash equivalents were $49.7
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$55.2 million and comprised of U.S. dollar-denominated
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million and comprised of U.S. dollar-denominated balances
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invest any surplus cash held by our
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invest any surplus cash held by
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South African operations in overnight
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our South African operations in overnight
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(1) Overdraft may only be used to fund ATMs
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be used to fund
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and upon utilization is considered restricted cash.
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and upon utilization is
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as to use and therefore is classified as restricted cash on our consolidated
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considered restricted as to use and therefore is classified as restricted cash on
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statement of cash flows as of March 31, 2024, includes restricted cash of $0.1 million
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statement of cash flows as of September 30, 2024, includes restricted cash of
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that has been ceded and pledged.
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$0.1 million that has been ceded and pledged.
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to net cash used in operating
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of income taxes, our cash used in operating activities during the first quarter of fiscal 2025 includes cash utilized for the settlement of
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We didn’t pay any significant taxes during the
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any significant taxes during the first quarter of fiscal 2025.
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
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offering products such as insurance and lending. We
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Earnings (Loss) from equity-accounted investments
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regarding net operating losses incurred by these entities.
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(Earnings) loss from equity accounted investments
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Net loss before (earnings) loss from equity-accounted investments
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and restricted cash presented in our consolidated statement
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million), primarily due to the acquisition of vaults.
Rearranged previous paragraphs (15)
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with the same period in the prior year:
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value of equity interests in MobiKwik and
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as higher transaction, insurance and lending revenues,
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This discussion is based on the amounts prepared in accordance with U.S. GAAP.
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The following tables show the changes in the items comprising our statements of
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operations, both in U.S. dollars and in ZAR:
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due to the increase in the number of
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components of operating loss margin under “—Results of operations
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below presents the relative (loss) earnings from our equity-accounted
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Results of operations by operating segment
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The composition of revenue and the contributions of our business activities to operating
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Our Segment Adjusted EBITDA margin for the year
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Our Segment Adjusted EBITDA margin for the year
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the year to date of fiscal 2024 and 2023 were as follows:
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million of our long-term borrowings to fund our merchant