Kaspi.kz financial results for Q2 and H1 2024

ALMATY, Kazakhstan, July 22, 2024 (GLOBE NEWSWIRE) — Kaspi.kz (“Kaspi.kz”, “we”) (Nasdaq: KSPI), which operates the Kaspi.kz Super App for consumers and the Kaspi Pay Super App for merchants, today announced its unaudited consolidated IFRS financial results for the quarter and first half ended June 30, 2024 (“Q2 and H1 2024”).

Key events in Q2 2024

• Strong second quarter 2024 with revenue and net income up 36% and 25% year-over-year (“YoY”), respectively.
• Our faster-growing and more profitable payments and markets platforms collectively accounted for 68% of consolidated net income, compared to 61% in H1 2023.
• In Q2 2024, All Platforms continued to deliver strong revenue growth:
  • Marketplace remains our fastest-growing platform, with GMV and revenue up 62% and 96% year-over-year, respectively.
  • Value-added services (“VAS”) revenue increased 4.2x year-over-year and added 100 basis points to the market adoption rate of 9.5%.
  • The scope of advertising products has expanded with the introduction of brand advertising.
  • Net market income up 68% year-on-year.
• e-Commerce Marketplace continues to deliver exceptional performance:
  • E-commerce GMV up 113% YoY.
  • E-commerce adoption rate up 30 basis points YoY to 11.3%.
• E-Grocery revenues are growing rapidly:
  • GMV growth of 99% y/y and the number of active customers reaching 639 thousand.
  • Launched in Shymkent, Kazakhstan’s third largest city. With a presence in Almaty, Astana and Shymkent, e-Grocery covers about half of the total retail trade in Kazakhstan.
  • We are expanding existing dark shops and opening another large dark shop in Almaty to meet the growing customer demand.
• Following the acquisition of Kolesa.kz, we are focusing on the automotive sector, which we believe is one of the largest areas of household spending:
  • Electric cars accounted for 28% of e-commerce market value in H1 2024
  • We plan to launch additional products this year as we build a leading digital experience for selling, buying and servicing cars.
• Kaspi Travel continues to grow dynamically:
  • GMV in the tourism industry increased by 33% year-on-year.
  • Last year we launched Kaspi Tours, a platform offering holiday packages, and in the second quarter of 2024, the value of tour sales increased year-on-year by 644%.
  • The tours are becoming increasingly popular and have recorded a take-up rate of 7.9%.
• In payments, strong revenues translate into bottom line:
  • Payment transactions increased by 46% year-on-year.
  • B2B Payments remains the fastest growing component of TPV. We expect B2B to continue to grow significantly faster than TPV Payments.
  • Payments revenue and net income increased by 23% and 22%, respectively.
• Fintech platform TFV growth of 43% YoY:
  • Merchant & Micro Finance is our fastest growing lending product, which in H1 2024 represented 17% of the real value of net assets, which is becoming increasingly important.
  • Moderate interest rates and faster loan growth than deposit growth should see Fintech net income growth accelerate significantly from Q3 2024.
• Investing in our growth, including international expansion, is our highest priority. However, if we have excess capital, we will return it to our shareholders.
  • Based on the consolidated financial results of Kaspi.kz for Q2 2024, our Board of Directors has proposed a dividend payment of KZT 850/ADS, subject to shareholder approval.
• Q3 2024 has started off strongly and we are seeing a healthy and predictable consumer and trade environment. Marketing campaign timing is often changing and year-over-year growth in Q3 2024 will be lower than in H1 2024 as Kaspi Juma has already taken place. However, we remain on track to deliver our current platform guidance and expect around 25% year-over-year growth in full-year 2024 Kaspi.kz consolidated net income.

To Kaspi.kz shareholders:

In the second quarter, we continued to operate in the manner to which you have become accustomed.

User engagement continues to reach record levels, with customers transacting 72 times per month, payment transactions up 46% year-over-year, and marketplace purchases up 38%. We’re always looking to offer more to our customers, and strong transaction activity is driving rapid revenue growth across our business.

The Marketplace platform continues to go from strength to strength with GMV up 62% year over year. Including e-Grocery GMV up 99%. In Kaspi Travel, GMV from Kaspi Tours up 644%. Kaspi.kz is a leader in e-commerce and going forward we will focus on building best-in-class customer experiences around more verticals. We started with Travel, then e-Grocery and now e-Cars. As we continue to execute our vertical strategy, we expect this to unleash another wave of innovation and growth, creating value for both our customers and shareholders. We will be rolling out more game-changing services later this year.

Another important area of ​​focus is value-added services for merchants. This includes advertising, where we recently launched our advertising solution for brands. Now brands can run campaigns and promote merchants who sell their products. The digital advertising market in Kazakhstan is still in its infancy. With a world-class advertising offering for local and global brands, we expect to be a catalyst for market growth.

Each of our new services not only helps us grow rapidly, but also opens up new areas for product innovation in the future. Their success gives me confidence that Kaspi.kz can continue to deliver healthy growth for many years to come.

The third quarter of the year has started strongly, with the consumer and retail environment remaining healthy. Our Fintech platform should now see significant acceleration in net income growth, which is another encouraging driver going forward. With Kaspi Juma taking place in Q1 and Q2 of this year, year-on-year GMV growth should be lower in Q3, before picking up again in Q4. Looking at the marketing campaign schedule, we are well-positioned to deliver another year of strong revenue and earnings growth.

As usual, if we have excess capital, we return it to our shareholders. For the second quarter of 2024, our Board of Directors has recommended a dividend of KZT 850/ADS, subject to shareholder approval.

However, investors should remember that we are working on plans to expand Kaspi.kz outside of Kazakhstan and when we decide that the time is right, we will not hesitate to invest our capital.

Mikheil Lomtadze
CEO and Co-Founder of Kaspi.kz

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For further information
David Ferguson, [email protected] +44 7427 751 275