KSPI Joint Stock Company Kaspi KZ

Joint Stock Company Kaspi.kz (“Kaspi.kz”, “we”) (Nasdaq:KSPI) which operates the Kaspi.kz Super App for consumers and Kaspi Pay Super App for merchants, today publishes its unaudited consolidated IFRS financial results for the quarter and nine months ended 30 September 2024 (“3Q & 9M 2024”).

9M 2024 Highlights

• Timing of marketing campaigns has distorted GMV growth between 2Q and 3Q. 9M 2024 is more representative of business performance with revenue and net income up 34% and 23% respectively. On track for FY24 net income growth of around 25%.
• Our faster growing and more profitable Payments and Marketplace Platforms together accounted for 68% of consolidated net income, up from 63% in 9M 2023.
• All Platforms continued to deliver strong top-line growth for the first 9 months of 2024:
  • Marketplace remains our fastest growing platform with GMV and revenue up 46% and 76% YoY respectively.
  • Marketplace net income up 45% YoY. New service Kaspi Gift Cards launched. An innovative way to drive Super App engagement and Marketplace transactions.
• Within Marketplace, e-Commerce keeps delivering the stand-out performance:
  • e-Commerce GMV up 95% YoY.
  • e-Commerce Take Rate up 40 bps YoY to 11.1%.
• e-Grocery top-line keeps growing fast:
  • GMV up 88% YoY in 3Q 2024 & active consumers up to 725k.
• Kaspi Travel is still growing rapidly:
  • Travel GMV up 35% YoY.
  • Last year we launched Kaspi Tours, a vacation package marketplace and in the seasonally important third quarter of 2024 tours GMV increased 302% YoY.
  • Tours are growth enhancing and had an 8.1% Take Rate in 3Q 2024.
• In Payments, strong top-line continues to drop-through to bottom-line:
  • Payment’s transactions up 42% YoY.
  • B2B Payments remains the fastest-growing component of TPV. We expect B2B to keep growing significantly faster than Payments TPV.
  • Payment’s revenue and net income both up 24% YoY respectively.
• Fintech Platform TFV growth up 34% YoY:
  • Merchant & Micro Business Finance and BNPL is our fastest growing lending product and at 17% of TFV in 9M 2024 is increasingly meaningful in size.
  • Dedicated Business Deposit for merchants launched. Another reason for merchants to transact with Kaspi.kz and an additional source of funding for us.
  • Moderating interest rates and loans growing faster than deposits led to accelerating Fintech net income growth in the third quarter of 2024.
• For a long time, we have said investing in our growth including international expansion is our top priority. With the acquisition of a controlling stake in Hepsiburada, we:
  • Expand our market to 100 million people.
  • Gain one of the leading e-Commerce franchises in Türkiye ’s underpenetrated and fast-growing e-Commerce market.
  • Hepsiburada is a strong cultural fit with Kaspi.kz given its innovative culture, focus on high quality services and sustainable growth.   
• Formal letter of interest to participate in the privatisation of the Humo payments system in Uzbekistan submitted. We are awaiting information on the next steps.
• Based on 3Q 2024 Kaspi.kz consolidated financials our Board of Directors has proposed a dividend of KZT850/ADS, subject to shareholder approval.
• We remain on track to deliver on our expectation of around 25% year-over-year full-year 2024 Kaspi.kz consolidated net income growth. With the return of Juma, the fourth quarter of 2024, should see accelerating growth and higher profitability, compared with 3Q 2024.

To the shareholders of Kaspi.kz:

Expanding our addressable market to 100 million people has been an important strategic priority for Kaspi.kz. On October 17th, we signed a definite agreement to acquire a controlling stake in Hepsiburada, one of Türkiye’s leading e-Commerce platforms.

Serving 12 million consumers and 101 thousand merchants, we believe Hepsiburada is a strong cultural fit with Kaspi.kz given its innovative culture, focus on providing high quality services to consumers and merchants and commitment to long-term sustainable growth. Like Kaspi.kz, Hepsiburada is a highly entrepreneurial company and home-grown e-Commerce champion, built by a visionary founder. Both companies are driven by a similar purpose, namely to improve consumers’ and merchants’ lives. Hepsiburada is EBITDA positive, which is a strong testament to its founder and management team who have focused on profitable growth rather than growth at all costs. The transaction is expected to close in the first quarter of 2025.

Turning to Kaspi.kz’s third quarter, where we continued to execute in line with our plans.

User engagement remains at record levels, with our consumers transacting 72 times per month, Payments transaction up 38% year-over-year and Marketplace purchases up 45%. We always aim to do more for our customers and strong transaction activity in turn is resulting in rapid momentum across our businesses.

Marketplace Platform GMV was up 46% year-over-year for the first nine months of the year. With the return of Juma in November, growth is expected to accelerate again compared to growth in the third quarter. Within Marketplace, our more recent initiatives continue to scale at a rapid rate. e-Grocery GMV increased 88% in the third quarter and in Kaspi Travel, GMV from Kaspi Tours increased 302%. Product innovation also continues at pace, with digital Kaspi Gift Cards added to Marketplace recently. 

The fourth quarter of the year has started well and the consumer and merchant environment remains healthy. As discussed before, our Fintech Platform is now seeing its Net Income growth accelerate, with a further step up in growth expected in the fourth quarter and our newly launched deposit account for merchants has gotten off to a great start. Payments Platform remains as healthy as ever.

Looking through the timing of marketing campaigns, we’re very much on track to deliver another year of strong top and bottom-line growth.

For the third quarter of 2024, our Board of Directors has recommended a dividend of KZT850/ADS, subject to shareholder approval.

Mikheil Lomtadze Kaspi.kz CEO and co-founder

Click on, or paste the following link into your web browser, to view the full announcement.http://ml.globenewswire.com/Resource/Download/261c14aa-4666-4a06-83f6-ff53b0e28c19

For further informationDavid Ferguson, david.ferguson@kaspi.kz +44 7427 751 275