TIDMKSPI
RNS Number : 1689J
JSC Kaspi.kz
25 April 2022
Kaspi.kz 1(st) Quarter 2022 Financial Results
Kazakhstan, 25 April 2022 - JSC Kaspi.kz ("Kaspi.kz", "we", or
the "Company") which operates the Kaspi.kz Super App, Kazakhstan's
leading mobile Super App, today publishes its unaudited
consolidated IFRS financial results for the quarter ending 31 March
2022.
First quarter 2022 highlights
-- Super App DAU increased 34% year-over-year to 7.2 million, a
substantially faster rate than MAU, which increased 14%
year-over-year to 11.4 million. DAU to MAU engagement up to
63%.
-- Average monthly transactions per active consumer up 63% year-over-year to 53.1.
-- Kaspi Pay continues to scale at a rapid rate, significantly
increasing its number of merchants.
o Active merchants up 233% year-over-year to reach 292K.
o 302K active Kaspi Pay POS devices by March 2022, up 99%
year-over-year.
o By number of transactions, Kaspi Pay accounted for 85% of all
Kaspi.kz in-store transactions, with third-party acquiring down to
just 15%.
o With a large and highly engaged merchant base, we expect rapid
growth in earlier stage merchant services including e-Commerce,
Kaspi Delivery, Kaspi Marketing and financing for merchants and
SMEs.
-- Kaspi e-Grocery, in conjunction with Kazakhstan's no.1
grocery retailer Magnum, is seeing extremely high consumer adoption
and positive consumer feedback.
o e-Grocery GMV and orders both up 23x year-over-year.
o Active consumers up 10x year-over-year.
-- Kaspi Pay B2B emerging as a new transformative payments
proposition for wholesalers, with B2B RTPV volumes up 10x
year-over-year to reach 2% of RTPV.
-- From start-up status just 18 months ago, Kaspi Travel is now
Kazakhstan's no.1 online flight and rail booking service. GMV
reached 9% of Marketplace GMV and given its now meaningful scale,
we have decided to start reporting Travel GMV as part of
Marketplace GMV. With Travel, e-Commerce and m-Commerce,
Marketplace now includes three large, diverse and fast growing
product propositions.
-- The breadth and depth of Marketplace's product proposition significantly enhanced.
o Marketplace merchants up 346% year-over-year to reach
163K.
o E-Commerce SKUs up 2.4x year-over-year to 1.6 million.
-- We also continue to scale Kaspi Smart Logistics Platform, with total orders delivered up 107% year-over-year to 2.3 million.
o 95% of deliveries free for the consumer.
o 53% of orders delivered in <=2 days.
o 929 Kaspi Postomats operational in March across 11 cities,
accounting for 8.8% of orders delivered, only 5 months' post
launch. At scale we expect Kaspi Postomats to materially improve
e-Commerce delivery economics.
-- Digital Documents launched on our GovTech Platform. Consumers
can access their ID cards, vaccine passport, driver's license,
marriage certificate, birth certificate and other digital documents
via the Kaspi.kz Super App.
o Over 1.5 million consumers have accessed Digital Documents in
its first weeks post launch.
-- Despite external macro shocks during the first quarter,
Kaspi.kz continues to deliver strong financials. First quarter 2022
Kaspi.kz consolidated adj. net income up 49% year-over-year to
KZT117 billion.
-- During March we deliberately scaled back consumer credit
origination (TFV) and postponed promotional campaigns for our
Marketplace Platform. However, consumer and merchant trends are
currently strong, with improving momentum. We also continue to see
high levels of credit quality. This leaves us well positioned to
gradually accelerate TFV growth in the second half of the year,
assuming a stable external backdrop. At this stage, even
considering reduced macro visibility, we continue to expect
Kaspi.kz's consolidated adj. net income to grow by between 20-30%
year-over-year in 2022.
-- At our full-year 2021 results we commented that, "We believe
our market capitalisation materially undervalues Kaspi.kz and so
are in the process of considering a GDR buyback program." Our Board
of Directors has now approved a buyback program for up to $100
million.
To the shareholders of Kaspi.kz:
During the first quarter of this year, we have experienced two
unexpected external shocks. However, yet again I'm pleased to
report that Kaspi.kz's business model has proven itself and our
management team continues to execute successfully.
Whether in good or more challenging times the Kaspi.kz Super App
makes everyday life better for consumers and merchants. We have
high quality, highly relevant digitally products and we work
relentlessly to ensure that we're there for our customers when they
need us. As long as we maintain the highest standards of execution,
I'm confident we will keep delivering for you, our shareholders, no
matter what challenges the external environment throws at us.
I'm fortunate that our senior management team is extremely
experienced and knows exactly what to do to ensure Kaspi.kz's
long-term success. During March we deliberately scaled back credit
origination (TFV) and postponed promotional campaigns for our
Marketplace Platform. This led to more modest short-term growth but
will ensure we maintain extremely high credit quality. We are now
well positioned to gradually accelerate growth as the external
backdrop stabilises.
During periods of increased uncertainty, we know that it is more
important than ever to remain focussed on long-term strategy, which
for us means developing innovative, relevant digital products and a
high-quality customer experience. With this in mind, we continue to
prioritize merchant onboarding to Kaspi Pay and momentum in the
first quarter was strong again.
Kaspi Pay merchants are increasingly becoming Kaspi Marketplace
merchants and m-Commerce merchant onboarding is at record levels.
We have multiple initiatives planned to grow our merchant base even
further and believe a large and engaged merchant base will enable
us to keep delivering rapid growth for many years to come.
Just over 18 months ago we acquired a start-up online travel
operator, which we rebranded Kaspi Travel. Kaspi Travel is now
Kazakhstan's no.1 online flight and rail booking service. Travel's
GMV has reached 9% of Marketplace GMV and given its now meaningful
scale, for the first time we're reporting Travel GMV as part of
Marketplace GMV. We will continue to broaden Kaspi Travel's
offering and combined with the recovery in international travel,
its outlook is very strong. With Travel, e-Commerce and m-Commerce,
our Marketplace Platform now includes three large, diverse and fast
growing product propositions.
The success of Kaspi Travel proves that a large and highly
engaged Super App consumer base can be quickly leveraged into new
sizeable, profitable and fast-growing markets. Our team is always
searching for product ideas that when added to our Super App will
help us sustain fast growth. Kaspi B2B, which was born out of Bill
Payments is a good example of this. We observed that wholesalers
and distributors were using our existing Bill Payments products to
accept instant payments from their customers. In response, we
developed targeted products specifically addressing wholesalers
needs. B2B payments now accounts for 2% of RTPV and growth is very
strong, up 10x year-over-year.
At our full year 2021 results in February, we highlighted Kaspi
e-Grocery as another important priority for this year. Consumer
adoption and feedback has been phenomenal and expansion to
Nur-Sultan is now planned for later this year.
Kaspi Postomats remains on-track for nationwide coverage by the
end of 2022 and will not only strengthen our delivery proposition
but help us meaningfully improve e-Commerce delivery economics.
Going forward our Payments and Marketplace Platforms should
continue to deliver very strong growth and we are well positioned
to gradually accelerate TFV growth in the second half of the year,
assuming a stable external backdrop.
Taking this all into account and even considering limited macro
visibility, I'm pleased to reiterate our expectation that Kaspi.kz
consolidated adj. net income will grow by around 20-30%
year-over-year in 2022. I am also pleased to confirm that our Board
of Directors has approved a $100 million GDR buyback program.
Kaspi.kz is at the forefront of the new digital revolution,
redefined by Super Apps. The combination of our scale with
consumers and merchants, reinforced by our Super App strategy, puts
us in a completely unique position to capture the multi-year
structural growth opportunity offered by digitalisation in
Kazakhstan and over time across the broader region.
As always, I would like to thank our team for their incredible
efforts and our shareholders, for your ongoing trust and
support.
Mikheil Lomtadze
Kaspi.kz CEO and co-founder
11.4 million Kaspi.kz Super App users. Engagement up again
DAU up 34% to 7.2 million, 63% DAU to MAU, avg. 53 transactions
per consumer/month
Kaspi.kz's Super App is an extremely strong product proposition
and gives our Payments, Marketplace and Fintech Platforms
unrivalled competitive advantages. During the first quarter of
2022, irrespective of the macro backdrop the underlying structural
drivers of our business remained healthy and Super App user and
engagement levels continued to reach all-time highs.
DAU (Daily Active Users) increased 34% year-over-year to 7.2
million, a substantially faster rate than MAU (Monthly Active
Users), which increased by 14% year-over-year to 11.4 million.
Highly discoverable transaction linked products and services make
the Kaspi.kz Super App integral to consumers' daily lives. The
ratio of DAU to MAU reached 63%, which is amongst the highest
levels of user engagement of any Super App globally and another
step-up, compared to 54% in the first quarter of 2021.
New products and services help increase engagement, by
facilitating digital transactions across more areas of regular
household spending. Average monthly transactions per active
consumer, one of our most important performance metrics, increased
by 63% year-over-year to 53.1 from 32.5 during the first quarter of
2021.
To drive engagement and transaction levels higher, over the last
year we have prioritised onboarding as many merchants, as rapidly
as possible. The results remain strong and during the first quarter
of 2022, growth in the total number of active merchants increased
233% year-over-year to reach 292K. We expect growth in our merchant
base to remain at elevated levels for the remainder of this
year.
Products like Kaspi QR, m-Commerce and Instant Invoicing all
facilitate merchant acquisition. In turn, with a large and highly
engaged merchant base, we can now grow earlier stage merchant
services including e-Commerce, B2B payments Kaspi Delivery, Kaspi
Marketing and financing for merchants and SMEs. These products all
help our merchants invest in their businesses, increase their
sales, reach new customers and the growth opportunity ahead is
substantial. A large and compelling merchant base, combined with
high quality and innovative digital products will drive ongoing
strong transaction growth across all our platforms.
Similar to our merchant strategy, products like P2P, Bill
Payments, BNPL, Kaspi QR and our GovTech Platform are the
foundation of our day-to-day relationship with consumers. Going
forward, we will grow less mature services including m-Commerce,
e-Commerce, Kaspi Travel and our recently launched e-Grocery
proposition. These services all help our consumers discover the
products they need, at the best possible prices, from local
merchants, with the convenience of free delivery, ultimately saving
consumers time and money. With consumer penetration across our full
range of Super App services still low, here too the opportunity
ahead remains significant.
We will also continue to launch new products and services.
During the first quarter of 2022 we added Digital Documents on our
GovTech Platform. Consumers can access their ID cards, vaccine
passport, driver's license, marriage certificate, birth certificate
and other digital documents via the Kaspi.kz Super App. Over 1.5
million consumers used the service in its first weeks post
launch.
In 2022 and beyond, we will also prioritise Kaspi e-Grocery,
which is a significant future opportunity. Initial consumer
feedback is extremely positive and if we're successful, e-Grocery
can have dramatically positive implications for Super App
engagement and Marketplace GMV growth. During the first quarter of
2022 e-Grocery GMV increased 22.7x year-over-year, with the number
of customers up 10.4x.
From start-up status just 18 months ago, Kaspi Travel is now
Kazakhstan's no.1 online flight and rail booking service. Kaspi
Travel reached 9% of Marketplace GMV in the first quarter of 2022
and going forward we will continue to broaden Kaspi Travel's
offering.
Combined with the recovery in international travel, we expect
Kaspi Travel to be additive to Marketplace growth.
Kaspi.kz 1Q 2022 financial highlights
Revenue up 45% and adj. net income up 49% YoY in 1Q22
During the first quarter of 2022, total revenue growth,
increasing by 45% year-over-year to reach KZT264,321 million.
Our Payments Platform continues to deliver excellent results due
to the success of Kaspi Pay. Having significantly expanded our
Marketplace merchant base, m-Commerce GMV trends are also very
strong. In e-Commerce, demand remains strong but we decided to
postpone promotional campaign in March due to the negative
backdrop. This partially muted GMV trends and lowered take-rate,
but we have started to gradually ramp-up campaign activity again.
Kaspi Travel GMV growth is extremely strong and additive to overall
Marketplace growth. Higher Fintech origination throughout 2021,
translated into strong revenue growth in the first quarter of 2022,
but again our deliberate decision to take a cautious approach to
TFV origination more recently, will lead to gradually moderating
Fintech revenue growth over the remainder of the year.
During the first quarter of 2022, adj. net income increased 49%
year-over-year to KZT117,113 million. Adj. net income profitability
increased to 44.3% from 43.0% in the first quarter of 2021.
As our proprietary payments network scales, we continue to
eliminate third-party costs, as well as benefitting from our
Payments Platform's operational gearing. Marketplace Platform
profitability was broadly flat, with lower marketing activity and
tight cost control offsetting investment in free delivery for
consumers. Our Fintech Platform's profitability was also
underpinned by lower marketing spending and tight cost control,
which offset more cautious macro cost of risk assumptions and lower
yield.
Our cash generation remained and our Board of Directors has now
approved a GDR buyback agreement for up to $100 million.
Payments Platform
RTPV up 60%, growing significantly faster than TPV, revenue up
59% & adj. net income up 73% YoY
Our Payments Platform has always offered consumers a highly
convenient way to shop, pay bills and make peer-to- peer (P2P)
payments via the Kaspi.kz Super App. As has been the case globally,
in Kazakhstan there has been a huge shift to digital payments, with
consumers demanding a seamless and integrated digital experience no
matter where they shop. Kaspi Pay is our response to help merchants
exceed their customers' expectations and grow their businesses.
Payments Platform products are also amongst our most important
tools to attract new customers and increase engagement, making
their popularity fundamental to Kaspi.kz's growth outlook. With
this in mind, we continue adding new opportunities to spend and
pay, which is a function of new merchants and product
development.
In the first quarter of 2022, Payments Platform merchant
onboarding remained strong, up 252% year-over-year to 292K
merchants. The benefits of this will be seen throughout 2022 as
existing merchants shift more of their volumes to Kaspi Pay,
leading to ongoing strong growth in RTPV. We also expect elevated
growth in new merchants to remain a theme for the remainder of the
year.
In the first quarter of 2022, there were 302K active Kaspi Pay
POS devices, up 99% year-over-year.
By creating our own closed-loop proprietary payments network, we
have eliminated the need for third-party processors and Kaspi Pay
offers merchants and consumers at scale, a best-in-class end-to-end
experience. This resulted in Kaspi Pay acquiring accounting for 85%
of all Kaspi Gold POS in-store retail transactions during first
quarter of 2022, with third-party acquirers now only processing 15%
of our transactions.
As we add new opportunities to pay, consumer growth has remained
robust. Payments Platform active consumers increased 23%
year-over-year, to reach 10.0 million, in the first quarter of
2022.
During the first quarter of 2022, Total Payment Value (TPV)
increased by 46% year-over-year to reach KZT12.8 trillion. Revenue
Generating TPV (RTPV) increased 60% to reach KZT3.6 trillion. RTPV
continues to grow significantly faster than TPV, a trend that is a
direct result of our success rolling out Kaspi POS devices. Going
forward, we will continue working hard to ensure Kaspi Pay keeps
playing its part helping Kazakhstan complete its transition to a
cashless digital economy.
Average balances increased 44% year-over-year in the first
quarter of 2022 to KZT639 billion.
During the first quarter of 2022, Payments Platform revenue
growth increased 59% year-over-year to reach KZT63,587 million.
Take-rate in the first quarter of 2022 was 1.2%.
Payments Platform adj. net income increased by 73%
year-over-year to KZT39,438 million, with net income profitability
of 62.0% up significantly from 57.0% in the first quarter of 2021.
Payments Platform profitability continues to benefit from cost
savings as we transition payment volumes away from third-party
network providers to our own proprietary payments network, combined
with the platforms operational gearing.
In 2021, Kaspi Pay B2B emerged as an extremely fast-growing
component of our RTPV. Our B2B proposition is primarily targeted at
small merchants and allows them to settle their invoices from
wholesalers instantly and conveniently. During the first quarter of
2022, B2B RTPV increased 9.7x year-over-year to KZT63.6 billion and
reached 2% of RTPV. Although it is still early days, we believe
Kaspi Pay B2B can emerge as a transformative product, put us in
pole position to design other innovative merchant products and is
another way we can help Kazakhstan's SMEs go from strength to
strength.
In 2022, we will continue to aggressively ramp-up our merchant
base and expect this to 1) contribute to ongoing strong growth in
RTPV and 2) a more diverse mix of Payments Platform revenue streams
including B2B payments. We continue to expect growth in average
balances of around 20% year-over-year. This moderation from prior
years is a natural consequence of growth in Payments Platform
consumers stabilising but is none the less robust, as opportunities
to transact expand.
Marketplace Platform
GMV up 50%, revenue up 40% & adj. net income up 39%
Our Marketplace Platform connects both online and offline
merchants with consumers, enabling merchants to increase their
sales using an omnichannel strategy and consumers to buy a broad
selection of products and services, at the best possible prices
from a wide range of merchants. In particular, Kaspi Marketplace
champions domestic Kazakh brands and merchants.
m-Commerce is our mobile solution for shopping in person, while
consumers can use e-Commerce to shop anywhere, any time with free
delivery. Kaspi Travel allows consumers to digitally book domestic
flights, international flights and domestic rail tickets. Taken
together we offer a unified shopping experience, irrespective of
online or offline, making us relevant across practically all areas
of consumer spending.
Just as with our Payments Platform, the rapid expansion of our
Marketplace merchant base is now an important strategic priority.
We're focused on digitally onboarding Kaspi Pay merchants to
Marketplace and during the first quarter of 2021, Marketplace
merchants increased to 163K, an acceleration to 346% year-over-
year growth. Over the same period, Marketplace consumers growth
increased 50% year-over-year to 5.0 million.
We expect merchant growth to remain at high levels throughout
2022, with more merchants and an enhanced assortment leading to
ongoing fast growth in consumers and transactions per consumer. An
enlarged merchant base will contribute to rapid growth from
earlier-stage products like Kaspi Delivery and Kaspi Marketing over
the medium-term.
During the first quarter of 2022 and especially in March, we
decided to postpone Marketplace promotional campaigns due to the
negative backdrop. This partially muted GMV trends, especially in
e-Commerce but despite this Marketplace GMV still increased 50%
year-over-year to KZT428 billion. m-Commerce had an excellent
quarter and delivered 66% year-over- year GMV growth.
Kaspi Travel's GMV increased 5.1x year-over-year to KZT37
billion during the first quarter of 2022, with ticket sales up 8.9x
and 2.1 million tickets sold during the same period. Kaspi Travel's
GMV reached 9% of Marketplace GMV, which is impressive scale given
that we only launched Kaspi Travel just 18 months ago.
e-Commerce demand remained strong with orders up 71%
year-over-year but reduced promotional activity negatively impacted
the sale of higher value e-Commerce items, leading overall GMV to
increase 14% year-over-year. For the remainder of 2022, we expect
items sold to continue growing faster than GMV, as we significantly
expand the breadth and depth of highly relevant everyday items,
albeit at lower price points. However, we will gradually ramp-up
campaign activity again, which should lead to higher e-Commerce GMV
growth.
The expansion of Kaspi Smart Logistics Platform to more cities
and introduction of free delivery for consumers is helping us grow
our e-Commerce merchant and consumer base. In the first quarter of
2022, orders delivered increasing 107% year-over-year. Delivery now
accounts for almost 91% of orders, was free for the consumer for
95% of orders, with 53% of orders delivered within 48 hours.
During the third quarter of 2021, we started to roll out Kaspi
Postomat and have already added 929 lockers by the end of March.
These lockers are now installed in 11 cities across the country and
account for 8.8% of e-Commerce deliveries. We use Kaspi.kz's
proprietary big data to identify the most appropriate locations and
consumer feedback is very positive. In 2022, we plan to have around
3,000 Postomats, which should give us Kazakhstan's largest locker
and last mile delivery network.
At scale, the addition of Kaspi Postomat to the Kaspi Smart
Logistics Platform significantly enhances its value proposition for
consumers, merchants and delivery partners. We're very happy with
our investment in free delivery, which is giving our consumers a
superior shopping experience, helps local merchants to sell
nationwide and is helping us build a differentiated e-Commerce
offering vs other digital shopping platforms.
Marketplace take-rate declined to 7.5% from 8.0% in the first
quarter of 2021 and resulted in Marketplace revenue growth of 40%
year-over-year to KZT32,674 million.
For the first time, we are now disclosing m-Commerce and
e-Commerce take-rate separately. During the first quarter of 2022,
m-Commerce and e-Commerce take-rates were 7.4% and 8.7%
respectively. Lower underlying take-rate year-over-year reflects
growth in supermarkets GMV which is a substantial revenue
opportunity but take-rate dilutive. Reduced promotional activity
also contributed to lower take rate but as mentioned previously we
expect promotional activity to increase going forward. The
inclusion of Kaspi Travel reduces reported Marketplace take-rate,
although Travel's take-rate increased to 3.5% from 2.9% in the
first quarter of 2021, due to the growing share of higher take-rate
rail bookings. These trends are consistent with our previous 2022
Marketplace take-rate guidance of around 8.5% (excluding Travel),
which is equivalent to around 8% (including Travel).
During the first quarter of 2022, Marketplace Platform adj. net
income reached KZT20,081 million, representing a 39% increase
year-over-year. Net income profitability was broadly stable at
61.5% from 62.1% in the same period in 2021. Stable profitability
resulted from lower marketing activity and tight cost control,
offsetting investment in free delivery.
In 2021 we started testing e-Grocery, in partnership with
Magnum, Kazakhstan's largest food retail chain. Kazakhstan's
grocery market was valued at $12 billion in 2021, making it the
largest possible spending opportunity our Marketplace can address.
Under this partnership Magnum is responsible for operating dark
stores, purchasing SKUs (currently 33K) and same day, free delivery
to consumers. Our main role is to generate orders and sales, define
assortment and pricing. We also provide integrated payments via
Kaspi Pay and leverage Kaspi Marketing to run highly personalised
advertising campaigns.
We started pilot testing e-Grocery last year and within month's
volumes scaled so fast that we are already Kazakhstan's no.1
e-Grocer, albeit in a nascent market. In the first quarter of 2022,
56K consumers made 224K orders. Average ticket size was around $18.
Going forward, scaling e-Grocery is now one of our most important
priorities and although average ticket-size and take-rate are lower
than our Marketplace average, we would expect a strong e-Grocery
proposition to be materially additive to Kaspi.kz Super App volumes
and engagement levels.
Our Marketplace cohort analysis shows us that the breadth and
depth of our merchant proposition is one of the most important
drivers of transactions per consumer growth and our long-term
competitive advantage. In this regard, we expect to continue
merchant onboarding at high levels. We expect to see continued
strong growth from Kaspi Travel as consumer adoption increases, new
products are added and demand for international travel recovers. We
also expect rapid growth of e-Grocery and on the back of our
enhanced merchant offering, Kaspi Smart Logistics will continue to
scale.
Marketing activity will gradually normalise and with all this
combined we expect to see accelerating Marketplace GMV growth over
2022. We will continue to invest in free consumer delivery but do
not expect this to have a negative impact on Marketplace
profitability.
Fintech Platform
TFV up 21% YoY, Buy-Now-Pay-Later 43% of origination & 1.6%
credit CoR
The short-term nature of all our financing and more specifically
Buy-Now-Pay- Later (BNPL) products allow us to quickly ramp-up or
scale back origination as we observe changes in the consumer
environment. During the first quarter of 2022, Total Finance Value
(TFV) increased 21% year-over-year to KZT872 billion. This reflects
our deliberate decision to take a more cautious approach to
origination in January and especially in March, in response to
deteriorating macro visibility. We have many years of experience
and know that it is always best to quickly act conservatively
during periods of increased macro volatility. We are now well
positioned to gradually accelerate TFV growth in the second half of
the year, assuming a stable external backdrop.
Our average net loan portfolio increased by 67% year-over-year,
reaching KZT2.4 trillion during the first quarter of 2022. Total
deposits increased by 26% year-over-year to KZT2.7 trillion,
leading our loan to deposit ratio to increase to 88% from 67% in
the first quarter of 2021 but remain stable quarter-on-quarter. We
view this level of loan to deposit ratio as broadly optimal.
Higher portfolio conversion of 2.2x in the first quarter of
2022, up from 1.6x in the first quarter of 2021, reflects higher
early repayments levels, as healthy consumers borrow, transact and
repay with increasing frequency. With our consumer credit quality
remaining extremely high, we expect to continue benefiting from
rapid portfolio conversion throughout 2022.
Low risk, small ticket, short duration Buy-Now-Pay-Later (BNPL)
loans accounted for 43% of TFV in the first quarter of 2022, making
them our most important Fintech Platform product. Our Merchant and
Micro Business Finance products continue to gain traction quickly,
accounting for 10% of TFV, during the same period.
Fintech yield was 27.1% during the first quarter of 2022, which
reflects the growing share of BNPL and Merchant Finance loans and
is consistent with our full-year guidance of around 25%.
During the first quarter of 2022, our underlying credit related
cost of risk was stable at 1.6%. Stable credit cost of risk
reflects the low-risk nature of our products, ongoing improvements
in our data driven origination capabilities, as well as our efforts
to constantly improve the efficiency of our collection processes.
More cautious macro factor assumption, led to an increase in total
cost of risk to 3.3%. However, as near-term macro assumptions are
amortised, we still expect our full year credit cost of risk to be
around 2%.
Fintech Platform revenue increased by 43% year-over-year,
reaching KZT170,483 million during the first quarter of 2022. As a
result of lower Fintech TFV in the first quarter of 2022, Fintech
revenue growth will moderate in the short-term, although this
should prove short lived, assuming TFV growth accelerates again
later this year.
In the first quarter of 2022, Fintech Platform's adj. net income
increased by 39% year-over-year to reach net income of KZT57,594
million. Adj. net income margin of 33.8% was stable compared with
34.6% in the first quarter of 2021. Flat profitability reflected
lower marketing activity and tight cost control, which offset lower
yield and higher cost of risk macro factors.
Assuming stabilisation in the macro-backdrop as 2022 progresses,
we expect gradually accelerating TFV origination in the second half
of the year. Although we will continue to prioritise our BNPL
product, we also expect our Kaspi Business merchant financing and
SME products to continue scaling rapidly. BNPL integrated with
Kaspi Travel is also expected to see strong growth.
We continue to expect Fintech yield to be around 25% in 2022,
which reflects the growing share of BNPL financing and Kaspi
Business merchant financing. An increasing share of low-ticket,
short-duration origination will ensure average loan portfolio
conversion remains high at above 2x.
In 2022 our Fintech Platform should see solid top-line growth,
even considering more modest origination and some yield reduction.
With ongoing low cost of risk and tight cost control, we expect
another year of healthy profitability growth, even taking
increasing deposit interest rate costs into account.
Guidance for full-year 2022
Kaspi Travel has achieved meaningful scale with its GMV
equivalent to 9% of Marketplace GMV, in the first quarter of 2022.
As a result, we will now report and provide Marketplace guidance
including Kaspi Travel. This change is currently GMV and GMV growth
additive and take rate dilutive for our Marketplace Platform.
Marketplace revenue and adj. net income is not impacted. This
reporting change has no impact on Kaspi.kz's revenue and adj. net
income financials and our underlying 2022 financial guidance
remains unchanged. In the interests of transparency, we are
providing our full-year 2022 Marketplace KPI guidance both
including and excluding Kaspi Travel.
During March we deliberately scaled back credit origination
(TFV) and postponed promotional campaigns for our Marketplace
Platform. However, the underlying drivers of Kaspi.kz's business,
including consumer and merchant trends remain strong. We also
continue to see high levels of credit quality. This leaves us well
positioned to gradually accelerate TFV growth in the second half of
the year, assuming a stable external backdrop. At this stage, even
considering reduced macro visibility, we continue to expect
Kaspi.kz's consolidated adj. net income to grow by between 20-30%
year-over-year in 2022.
For detailed 2022 KPI and financial guidance by Platform please
see www.ir.kaspi.kz
Share-based compensation expense
Following our IPO, we introduced an LTIP program in 2020. In
September 2021, the program was expanded to include 74 senior
executives and other key personnel, who will receive Kaspi.kz share
options. Awards are payable in annual instalments over a five-year
vesting schedule.
Share-based compensation expenses during the first quarter of
2022 amounted to KZT3,693 million.
In March 2022, share options in the quantity of 495,409 shares
were exercised from treasury shares under the share- based LTIP
plan. Outstanding share options as at 31 March 2022 were
1,658,673.
Total shares outstanding as 31 March 2022 were 192,682,632.
Kaspi.kz Consolidated Income Statement
1Q 2021, KZT 1Q 2022, 1Q 2021 ADJUSTED, 1Q 2022 ADJUSTED,
MM KZT MM KZT MM KZT MM
--------------------------- ------------ -------- ----------------- -----------------
Revenue 168,864 253,712 182,793 264,321
--------------------------- ------------ -------- ----------------- -----------------
growth, % - - - 45%
--------------------------- ------------ -------- ----------------- -----------------
Interest Revenue 88,592 123,254 88,592 123,254
--------------------------- ------------ -------- ----------------- -----------------
Fees, Commissions &
Other 40,236 53,282 40,236 53,282
--------------------------- ------------ -------- ----------------- -----------------
Transaction & Membership
Revenue 32,006 48,978 32,006 48,978
--------------------------- ------------ -------- ----------------- -----------------
Seller fees 22,860 32,080 22,860 32,080
--------------------------- ------------ -------- ----------------- -----------------
Rewards (13,929) (10,609) - -
--------------------------- ------------ -------- ----------------- -----------------
Other gains and losses (901) 6,726 (901) 6,726
--------------------------- ------------ -------- ----------------- -----------------
Cost of revenue (56,094) (72,354) (55,917) (72,049)
--------------------------- ------------ -------- ----------------- -----------------
growth, % - - - 29%
--------------------------- ------------ -------- ----------------- -----------------
% of revenue 33.2% 28.5% 30.6% 27.3%
--------------------------- ------------ -------- ----------------- -----------------
Interest Expenses (40,882) (50,374) (40,882) (50,374)
--------------------------- ------------ -------- ----------------- -----------------
Transaction Expenses (2,987) (5,422) (2,987) (5,422)
--------------------------- ------------ -------- ----------------- -----------------
Operating Expenses (12,225) (16,558) (12,048) (16,253)
--------------------------- ------------ -------- ----------------- -----------------
Total net revenue 112,770 181,358 126,876 192,272
--------------------------- ------------ -------- ----------------- -----------------
growth, % - - - 52%
--------------------------- ------------ -------- ----------------- -----------------
margin, % 66.8% 71.5% 69.4% 72.7%
--------------------------- ------------ -------- ----------------- -----------------
Technology & product
development (9,540) (13,030) (7,722) (10,644)
--------------------------- ------------ -------- ----------------- -----------------
Sales and marketing (1,415) (12,190) (15,344) (12,676)
--------------------------- ------------ -------- ----------------- -----------------
General and administrative
expenses (5,529) (5,436) (3,344) (3,866)
--------------------------- ------------ -------- ----------------- -----------------
Provision expense (7,409) (24,147) (7,409) (24,147)
--------------------------- ------------ -------- ----------------- -----------------
Operating income 88,877 126,555 93,057 140,939
--------------------------- ------------ -------- ----------------- -----------------
growth, % - - - 51%
--------------------------- ------------ -------- ----------------- -----------------
margin, % 52.6% 49.9% 50.9% 53.3%
--------------------------- ------------ -------- ----------------- -----------------
Income tax (14,194) (23,826) (14,437) (23,826)
--------------------------- ------------ -------- ----------------- -----------------
Net income 74,683 102,729 78,620 117,113
--------------------------- ------------ -------- ----------------- -----------------
growth, % - - - 49%
--------------------------- ------------ -------- ----------------- -----------------
margin, % 44.2% 40.5% 43.0% 44.3%
--------------------------- ------------ -------- ----------------- -----------------
Notes
1. 2021 and 2022 adjusted for share-based compensation expense
2. 2022 adjusted for contribution to charitable fund 'For the
People of Kazakhstan' and civil unrest expense
3. Revenue adjusted for presentation of Rewards in Sales & Marketing expenses
4. In 1Q22 intergroup revenue of KZT2,421mn represents interest
revenue for Payments that was offset by interest expenses of
Fintech. This is due to Fintech partially using Payments' interest
free balances to fund lending
Kaspi.kz Consolidated Balance Sheet
31-Dec-2021, 31-Mar-2022,
KZT MM KZT MM
------------------------------------------ --------------------- ---------------------
Cash and cash equivalents 342,101 445,347
------------------------------------------ --------------------- ---------------------
Mandatory cash balances with NBK 32,734 36,965
------------------------------------------ --------------------- ---------------------
Due from banks 50,903 44,801
------------------------------------------ --------------------- ---------------------
Investment securities and derivatives 607,417 541,121
------------------------------------------ --------------------- ---------------------
Loans to customers 2,430,737 2,361,366
------------------------------------------ --------------------- ---------------------
Property, equipment and intangible assets 85,101 88,492
------------------------------------------ --------------------- ---------------------
Other assets 58,931 88,996
------------------------------------------ --------------------- ---------------------
Total assets 3,607,924 3,607,088
------------------------------------------ --------------------- ---------------------
Due to banks 76,492 75,958
------------------------------------------ --------------------- ---------------------
Customer accounts 2,763,04 3 2,686,129
------------------------------------------ --------------------- ---------------------
Debt securities issued 139 , 711 13 6,547
------------------------------------------ --------------------- ---------------------
Other liabilities 56 , 318 48,863
------------------------------------------ --------------------- ---------------------
Subordinated debt 67 , 665 6 5,941
------------------------------------------ --------------------- ---------------------
Total liabilities 3,103, 229 3,013,438
------------------------------------------ --------------------- ---------------------
Share capital 97,530 99,739
------------------------------------------ --------------------- ---------------------
Additional paid-in-capital 506 506
------------------------------------------ --------------------- ---------------------
Revaluation reserve of financial assets 2 ,5 97 (14,170)
------------------------------------------ --------------------- ---------------------
Share-Based Compensation reserve 21 , 242 13,037
------------------------------------------ --------------------- ---------------------
Retained earnings 3 77 , 852 489,483
------------------------------------------ --------------------- ---------------------
Total equity attributable to Shareholders
of the Company 499,727 588,595
------------------------------------------ --------------------- ---------------------
Non-controlling interests 4,968 5,055
------------------------------------------ --------------------- ---------------------
Total equity 504,695 593,650
------------------------------------------ --------------------- ---------------------
Total liabilities and equity 3, 607 , 924 3, 6 07,088
------------------------------------------ --------------------- ---------------------
Conference call information
On Monday 25 April 2022 the management of Kaspi.kz will hold a
conference call and webcast at 1.00pm (London) (8.00am U.S. Eastern
Time, 6.00pm Nur-Sultan time) to review and discuss the company's
results for the first quarter and full-year 2022.
First Quarter 2022 Financial Results Conference Call
Monday, 25 April, 2022
To pre-register for this call, please go to the following
link:
https://www.incommglobalevents.com/registration/client/10501/kaspikz%E2%80%99s-
1q22-financial-results-conference-call/
You will receive your access details via email.
To access the online replay, click on the following link and
enter the access code: 622909
https://www.incommglobalevents.com/replay/7723/kaspikz%E2%80%99s-1q22-financial-
results-conference-call/
About Kaspi.kz
Kaspi.kz's mission is to improve people's lives by developing
innovative mobile products and services. At our core is the
Kaspi.kz Super App, the leading mobile app in Kazakhstan.
The Kaspi.kz Super App serves as a single gateway to our
Payments, Marketplace and Fintech Platforms and is an integral part
of our users' daily lives. As people's lives become increasingly
digitalised, Super App usage is expected to grow supported by
accelerating adoption of cashless payments, e-Commerce and digital
financial services.
Kaspi.kz Super App business model ensures the growth and
development of one service contributes to the growth and
development of other services, creating a powerful virtuous cycle.
Increasing usage of a growing number of services puts Kaspi.kz in a
strong position to keep innovating, delighting our users and
fulfilling our mission.
Kaspi.kz has been listed on the London Stock Exchange since
2020.
For further information david.ferguson@kaspi.kz +44 7427 751
275
Forward-looking statements
Some of the information in this announcement may contain
projections or other forward-looking statements regarding future
events or the future financial performance of Kaspi.kz. You can
identify forward looking statements by terms such as "expect",
"believe", "anticipate", "estimate", "intend", "will", "could,"
"may" or "might", the negative of such terms or other similar
expressions. Kaspi.kz wish to caution you that these statements are
only predictions and that actual events or results may differ
materially. Kaspi.kz does not intend to update these statements to
reflect events and circumstances occurring after the date hereof or
to reflect the occurrence of unanticipated events. Many factors
could cause the actual results to differ materially from those
contained in projections or forward-looking statements of Kaspi.kz,
including, among others, general economic conditions, the
competitive environment, risks associated with operating in
Kazakhstan, rapid technological and market change in the industries
the Company operates in, as well as many other risks specifically
related to Kaspi.kz and its respective operations.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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END
QRFUVUVRUKUSURR
(END) Dow Jones Newswires
April 25, 2022 02:01 ET (06:01 GMT)
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