TIDMKSPI
RNS Number : 1151R
JSC Kaspi.kz
27 February 2023
Kaspi.kz Fourth Quarter and Full- Year 2022 Financial
Results
Almaty, Kazakhstan, 27 February 2023 - JSC Kaspi.kz ("Kaspi.kz",
"we", or the "Company") which operates the Kaspi.kz and Kaspi Pay
Super Apps, today publishes its audited consolidated IFRS financial
results for the fourth quarter and full year ending 31 December
2022.
Fourth quarter & full-year 2022 highlights
-- Average monthly transactions per active consumer up 19% year-over-year to 60.
-- RTPV transactions increased 46% year-over-year and Marketplace purchases increased 61%.
-- Kaspi Pay continues to scale at a rapid rate, significantly
increasing its number of merchants.
-- Active merchants up 101% year-over-year to reach 485K.
-- 465K active Kaspi Pay POS devices by December 2022, up 69%
year-over-year. The benefits of this will continue being seen in
2023 as merchants shift more of their volumes to Kaspi Pay.
-- By number of transactions, Kaspi Pay accounted for 92% of all
Kaspi.kz in- store transactions, with third-party acquiring down to
just 8%.
-- With a large, highly engaged and growing merchant base, we
expect rapid growth in earlier stage merchant services over the
next few years including Kaspi Marketing, Kaspi Delivery and
financing for merchants and SMEs.
-- Kaspi Pay B2B emerging as a new transformative payments
proposition for merchants and their suppliers, with RTPV up 3.5x
year-over-year. B2B payments can be the start of a long list of
innovative B2B services.
-- Kaspi e-Grocery, in partnership with Kazakhstan's largest
grocery retailer Magnum, is seeing strong momentum and extremely
positive consumer feedback.
-- e-Grocery GMV up 8.1x, purchases up 5.2x and consumers up 6.7x year-over-year.
-- First dark store in Almaty EBITDA positive within 5 quarters.
Having fine-tuned business model economics, nationwide rollout plan
now in place to enter $12 billion plus grocery market.
-- Kaspi.kz to invest around KZT20-25 billion per annum over the
next 3 years, with our equity ownership agreed at 90%. Operating
control will allow us to execute fast and ensure all aspect of the
consumer experience meet Kaspi.kz's high standards.
-- Kaspi Travel GMV and tickets sold up 1.9x and 1.8x year-over-year.
-- Package holidays now launched. Another $1bn addressable
market. Will be GMV & take-rate enhancing for Marketplace in
2023 and beyond.
-- With Travel, e-Commerce and m-Commerce, Marketplace now
includes three large, diverse and fast-growing propositions.
-- The breadth and depth of Marketplace's product proposition significantly enhanced.
-- Marketplace merchants up 159% year-over-year to reach 317K.
-- e-Commerce SKUs up 1.9x year-over-year to 2.8 million.
-- We continue to scale Kaspi Smart Logistics Platform, with
total orders delivered up 241% year-over-year to 8.2 million.
-- 97% of deliveries free for the consumer.
-- 46% of orders delivered in <=2 days.
-- 3,348 Kaspi Postomats operational in December across 86
cities, accounting for 31% of orders delivered. Around 8,000
lockers planned by end-2023.
-- Kaspi Classifieds launched in conjunction with Kolesa.kz,
owner of the largest car and real estate classified marketplaces in
Kazakhstan. Initial growth in users and C2C listings encouraging
with MAU exceeding 4 million, just 3 months after launch.
-- For full-year 2022 strong financials, ahead of guidance,
delivered once again. Consolidated 2022 adj. net income up 36%
year-over-year, ahead of above 30% growth guidance and well ahead
of the 20-30% guidance we started the year with.
-- 59% of 2022 adj. net income from our Payments and Marketplace
Platforms. Contribution from Fintech Platform will keep
falling.
-- Third GDR repurchase program worth $84 million complete,
following on from repurchase programs worth $51 million and $45
million respectively. We stand ready to make further repurchases,
though are cognizant of limited liquidity.
-- Based on our fourth quarter 2022 results, our Board of
Directors has proposed a dividend of KZT600/GDR, subject to
shareholder approval.
-- Long-term capital allocation policy unchanged.
-- We're working hard to deliver a good 2023 and even considering ongoing macro volatility and significantly higher funding costs, currently expect to grow Kaspi.kz 2023 adj. net income by around 25% year-over-year.
To the shareholders of Kaspi.kz:
We are all living through a period of heightened economic and
political uncertainty. We hope 2023 will be better, but
irrespective you can be sure that we will always give everything,
to deliver the best possible results. We remain unrelenting in our
efforts to develop high quality digital products, that are used
day-in, day-out. Innovation and best-in-class execution are at the
heart of everything we do. As long as this remains the case, I'm
confident that Kaspi.kz can keep delivering fast growth for many
more years to come. Our 2022 results are once again the proof and I
expect more of the same in 2023.
In the fourth quarter of last year, the underlying growth
drivers of our business remained strong. Merchant onboarding to
Kaspi Pay, m-Commerce and e-Commerce increased 101% year-over-year,
to reach 485K active merchants. Average monthly transactions per
active consumer reached 60 per month, with revenue generating
payment transactions (RTPV) and Marketplace purchases up 46% and
61% year-over-year respectively. Strong operating trends,
translated into above guidance 2022 financial results.
For 2022 we delivered adj. net income growth of 36%
year-over-year, well ahead of the 20-30% guidance we started the
year with. At a time when many leading internet companies around
the world are kitchen sinking their earnings outlook and firing
employees in order to become profitable, our performance stands out
for the right reasons. The Kaspi.kz Super App strategy works and
our team knows how to deliver. We also generated 59% of net income
in 2022, from our Payments and Marketplace Platforms. Their faster
growth creates disproportionately more value for our
shareholders.
With the relevance of our Super App to consumers and merchants
continuing to increase, we remain in pole position to deliver fast
growth in 2023. In Payments, the results of our merchant strategy
will continue being seen as Kaspi Pay and Kaspi B2B capture more
volumes. In Marketplace, the success of Juma last year reminded us
just how loved this event is and we're already working hard on
plans to raise the bar again this year. In Fintech, higher interest
rates are reducing near-term profitability. However, they're also
helping us attract new consumers and Kaspi Deposit is very popular.
When interest rates normalise, margins will recover and with a
larger customer base, we can drive even more transactions. In any
case, even considering significantly higher funding costs and
ongoing macro volatility, we currently expect to grow Kaspi.kz 2023
adj. net income by around 25% year-over-year.
Although investors focus today will understandably be our 2023
guidance, we're already taking the steps to ensure that we keep
delivering fast growth over the next 3-5 years. Our decision to
invest into e-Grocery, as part of a joint venture with Magnum, is a
great example of this. e-Grocery won't make a big difference to our
results this year, but if we get the product right will allow us to
play a major role digitalising the food retail sector in Kazakhstan
and other markets over the medium-term. The benefits of which will
include higher Super App engagement, a better consumer proposition
in every possible way and faster financial growth for many years to
come. With operating control of e-Grocery, we can now make the
investment required to scale, execute fast and ensure all aspect of
the consumer experience meet Kaspi.kz's very high standards. Having
agreed 90% equity ownership, all our stakeholders will benefit from
the value we plan to create.
All in all, we should be able to deliver a good 2023 and are
upbeat about our mid-term growth prospects. As is now the custom,
we have provided detailed 2023 KPIs and financial guidance, with
which we expect our shareholders to hold us accountable.
As I have always said, investing in our growth, is the no.1
priority for the cash we generate. However, if we have excess
capital we will return it to our shareholders. Taking this into
account, our Board of Directors has approved a further dividend,
subject to shareholder approval, equivalent to KZT600/GDR. Having
completed three buyback programs worth $51 million, $45 million and
most recently $84 million, we stand ready to repurchase our own
stock, albeit are cognizant of limited liquidity. Absolutely
nothing has changed in terms of our long-term approach to the
allocation of capital.
Our commitment to ensuring Kaspi.kz is listed on the most
appropriate exchange also remains unchanged. External factors made
this impossible last year but higher capital market activity so far
this year is encouraging.
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. With the multi-year structural
growth opportunity offered by digitalisation in Kazakhstan and the
neighbouring region amongst the most attractive of anywhere
globally, we thoroughly intend to capture it.
As always, I would like to thank our team for their incredible
execution and dedication to our customers. To our long-term
shareholders, thank you for your ongoing trust and support.
Mikheil Lomtadze
Kaspi.kz CEO and co-founder
Kaspi.kz 4Q 2022 engagement highlights
RTPV transactions up 46%, Marketplace purchases up 61% YoY &
60 transactions per consumer/month
Kaspi.kz's Super App is Kazakhstan's most popular Super App and
gives our Payments, Marketplace and Fintech Platforms unrivalled
competitive advantages. During the fourth quarter of 2022, Super
App transaction levels continued to hit all-time highs.
Increased adoption of our existing products by merchants and
consumers, along with a growing range of new products facilitates
higher engagement and transactions across more areas of household
spending and merchant's business activity. Average monthly
transactions per active consumer, increased by 19% year-over-year
to 60, during the fourth quarter of 2022.
To drive transactions even higher, we have prioritised
onboarding as many merchants, as rapidly as possible. During the
fourth quarter of 2022, the total number of active merchants
increased 101% year-over-year to reach 485K. We expect our merchant
base to continue seeing solid growth in 2023.
We design high quality digital products to monetize transaction
volumes. During the fourth quarter of 2022, RTPV transactions
increased 46% year-over-year and Marketplace purchases increased
61%. Fast growth in monetized transactions, despite economic
volatility, illustrates just how relevant our products are to our
customers.
Kaspi Pay and m-Commerce are the basis of our day-to-day
relationship with merchants. Going forward, we will also grow
earlier stage merchant services including e-Commerce, B2B payments,
Kaspi Marketing, Kaspi Delivery and financing for merchants and
SMEs. These products help our merchants invest in their business,
reach new customers, increase their sales and ensure we remain
their digital partner of choice. The growth opportunity ahead is
substantial and as these initiatives scale in future years, we will
of course provide more detail.
P2P, Bill Payments, BNPL, Kaspi QR and our GovTech Platform are
fundamental to high day-to-day consumer engagement. Going forward,
we will grow less mature services including e-Commerce &
Postomats, all aspects of Kaspi Travel, e-Grocery and Kaspi
Classifieds. These services help our consumers discover the
products they need, at the best possible prices, from local
merchants, with free delivery, saving time and money. With consumer
penetration across our full range of Super App services still low,
here too the opportunity ahead remains significant.
From start-up in Almaty just 18 months ago, we are now planning
to roll out Kaspi e-Grocery nationwide. With an innovative,
high-quality digital offering, we believe we can transform the food
shopping experience in Kazakhstan and other markets over time. This
is a sizeable opportunity and exciting joint project with Magnum,
Kazakhstan's leading food retailer. If we get our product right, it
will mean higher Super App engagement, faster financial growth and
further value creation for our shareholders. During the fourth
quarter of 2022 purchases increased 5.2x year-over-year, with the
number of consumers up 6.7x. Here too, as we scale e-Grocery, we
will provide more detailed financial information.
Kaspi Travel is now Kazakhstan's N1 online flight and rail
booking service. Kaspi Travel tickets sold increased 1.8x
year-over-year, with GMV accounting for 6% of Marketplace GMV in
the seasonally softer fourth quarter of 2022. In 2023 we will
broaden Kaspi Travel's offering, with the addition of package
holidays. Packages represent a $1bn market opportunity and we
expect Kaspi Travel to once again be additive to Marketplace GMV
growth and take rate this year.
Kaspi B2B, which was born out of Bill Payments, is an example of
how we can grow transactions by targeting completely new segments,
in this case wholesalers, distributors and manufacturers. Number of
B2B transactions increased 2.9x year-over-year, during the fourth
quarter of 2022 and with this product still in its early days, we
expect B2B to keep growing fast in 2023. In the medium-term, B2B
payments can be the start of a long list of innovative B2B
services.
Across our GovTech Platform, services for both consumers and
merchants continue to grow in popularity. Digital documents, car
ownership registration, driver's license issuance and new business
registration were our most widely used government services in 2022.
Last month, we introduced Tax Reports, which should be highly
relevant for merchants. We will continue to look for opportunities
to work with government and jointly develop digital products that
make everyday life in easier.
We recently launched Kaspi Classifieds in conjunction with
Kolesa.kz and although it is early days, initial growth in users
and C2C listings is encouraging with MAU exceeding 4 million just 3
months after launch.
As always, we will continue to launch new services and our
product pipeline in 2023 and beyond is as exciting as ever.
Kaspi.kz 4Q & full-year 2022 financial highlights
Full-year net income growth well above guidance
Revenue up 40% and adj. net income up 37% YoY in 4Q22; Revenue
up 40% and adj. net income up 36% YoY in 2022
During the fourth quarter of 2022, total revenue increased 40%
year-over-year to KZT406 billion. For full-year 2022, total revenue
increased 40% to KZT1.3 trillion.
Our Payments Platform delivered fast and consistent top-line
growth throughout the year, due to the ongoing success of Kaspi Pay
and Kaspi B2B. In Marketplace, we prioritised expanding our
merchant base and free consumer delivery. This combined with the
success of Kaspi Juma, first in July and then in November led to
accelerating second half GMV momentum, with the fourth quarter the
strongest in the year. Kaspi Travel GMV growth remained additive to
Marketplace growth. Our cautious approach to TFV origination in the
first half of 2022, translated into slightly more modest Fintech
revenue growth in the final quarter, but with TFV origination back
to normal, revenue growth is expected to be robust in 2023.
During the fourth quarter of 2022, adj. net income increased 37%
year-over-year to KZT197 billion. Adj. net income profitability
decreased to 48.6% from 49.7% in the fourth quarter of 2021. For
full-year 2022, adj. net income increased 36% to KZT620 billion,
with 47.1% profitability down from 48.6% year-over-year.
We continued to benefit from Payments Platform's operational
gearing. Marketplace profitability was slightly lower in 2022, due
to our investment in free consumer delivery, but increased
year-over-year in the fourth quarter. In Fintech, the combination
of yield reduction and significantly higher funding costs lowered
profitability, partially mitigated by lower provisioning and tight
control of operating costs. Higher funding costs did however help
us attract substantial deposit inflows, with average Kaspi Deposit
balances up 35% year-over-year in the fourth quarter of 2022. An
enlarged deposit base will allow us to fund higher TFV in 2023 and
with the decline in Fintech profitability being cyclical, not
structural, as interest rates normalise, Fintech profitability will
recover.
Our faster growing and higher margin Payments and Marketplace
Platforms continued to deliver strong bottom-line growth,
accounting for 59% of adj. net income in 2022, up from 51% in 2021.
In 2023, we expect the contribution to net income from our Payments
and Marketplace Platforms to increase again.
Our cash generation capacity remains as strong as ever. As a
result, our Board of Directors has proposed, subject to shareholder
approval, a KZT600/GDR dividend. This follows on from dividends of
KZT500/GDR and KZT600/GDR, following our second and third quarter
2022 financial results respectively. In addition, we have just
completed our third buyback program, which amounted to $84 million
and followed on from repurchase programs, worth $51 million and $45
million in 2022.
Payments Platform
Consistently strong growth throughout 2022 & operational
gearing intact
RTPV up 53%, revenue up 53% and adj. net income up 60% YoY in
4Q22; RTPV up 54%, revenue up 54% and adj. net income up 60% YoY in
2022
Our Payments Platform offers a highly convenient way to shop,
pay bills and make peer-to-peer (P2P) payments using the Kaspi.kz
Super App. As has been the case globally, in Kazakhstan there has
been a huge shift to mobile payments, with consumers demanding a
seamless digital experience, no matter where they shop. Kaspi Pay
is our response to help merchants exceed their customers'
expectations and with Kaspi B2B we are now digitalising supplier
payments.
Payments Platform products are also amongst our most important
tools to attract new customers and increase engagement. We continue
adding new opportunities to spend and pay, which is a function of
new merchants and product development.
In the fourth quarter of 2022, Payments Platform merchant
onboarding remained strong, up 101% year-over-year to 485K
merchants. Over the same period, there were 465K active Kaspi Pay
POS devices, up 69% year- over-year. The benefits of this will
continue being seen in 2023 as merchants shift more of their
volumes to us, resulting in ongoing high growth in RTPV.
As we add new opportunities to pay, consumer growth has remained
robust. Payments Platform active consumers increased 16%
year-over-year, reaching 11.3 million, in the fourth quarter of
2022.
During the fourth quarter of 2022, Revenue Generating TPV (RTPV)
remained strong, increasing 53% year-over-year to KZT6.4 trillion.
RTPV is growing significantly faster than Total Payment Value (TPV)
due to our success rolling out Kaspi Pay and the ongoing popularity
of Bill Payments. For full-year 2022, RTPV increased 54% to KZT19.9
trillion.
Over the last year, Kaspi Pay B2B has emerged as a fast-growing
component of our RTPV. Our B2B proposition connects small merchants
with wholesalers, distributors and manufacturers, allowing invoices
to be settled instantly and conveniently. During the fourth quarter
of 2022, B2B RTPV increased 3.5x year-over-year to KZT194 billion
and reached 3% of RTPV. We expect B2B to continue growing
significantly faster than Payments RTPV in 2023.
Average interest free balances increased 11% year-over-year in
the fourth quarter of 2022 to KZT676 billion. More modest growth in
balances, reflects the increased attractiveness of interest bearing
Kaspi Deposit accounts and is a natural consequence of growth in
Payments Platform consumers stabilising. For full-year 2022,
average interest free balances increased 21% to KZT633 billion.
During the fourth quarter of 2022, Payments Platform revenue
growth increased 53% year- over-year to reach KZT105 billion. For
full-year 2022, Payments Platform revenue growth increased 54% to
KZT333 billion. Take-rate in the fourth quarter and for 2022 was
stable year-over-year at 1.2%. Take-rate slightly above our
full-year 2022 around 1.1% guidance, is a function of timing and as
Kaspi Pay and B2B keeping growing their share of RTPV, take-rate
should be around 1.1% in 2023.
Kaspi Pay eliminates the need for third-party processors and
gives merchants and consumers end-to-end payments functionality,
with low pricing. In the fourth quarter of 2022, Kaspi Pay
acquiring accounting for 92% of all Kaspi Gold POS in-store retail
transactions, with third parties processing only 8% of
transactions. This is positive for Payments Platform profitability
and some further progress is expected in 2023.
Payments Platform adj. net income increased 60% year-over-year
to KZT66 billion, with net income profitability of 62.5% compared
to 59.5% in the fourth quarter of 2021. Payments Platform
profitability continues to benefit from the elimination of
third-party costs, our proprietary payments network's operational
gearing and tight cost control. For full-year 2022, Payments
Platform adj. net income increased 60% year-over-year to reach
KZT210 billion, with net income profitability increasing to 62.9%
from 60.5% in 2021.
In 2023 we expect Payments Platform to deliver RTPV growth of
around 35% year-over-year, with average current account balances up
15%. Take rate will be in the region of 1.1%. With Payment
Platform's inherent operational gearing unchanged, adj. net income
profitability is expected to be in the mid-60% range.
Looking into the medium-term, Payments Platform cohort analysis
continues to show strong growth across every consumer cohort.
Existing consumers keep spending more with us and as we add more
merchants and opportunities to transact, fast growth can be
sustained. Kaspi B2B increases our addressable market further. We
will stay disciplined on costs, ensuring strong top-line trends,
drop through to the bottom-line. As a result, we remain extremely
positive about the growth outlook for Payments Platform in 2023 and
beyond.
Marketplace Platform
Accelerating GMV growth throughout 2022. GMV up 60%, revenue up
67% & adj. net income up 68% YoY in 4Q22; GMV up 56%, revenue
up 56% & adj. net income up 53% YoY in 2022
Our Marketplace Platform connects merchants with consumers and
puts us front and centre of their purchasing decisions. Merchants
can reach around 12 million consumers and consumers can find a wide
selection of products and services, at the best possible prices.
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 book domestic and
international flights, rail tickets and from 2023 overseas package
holidays. In partnership with Magnum, Kazakhstan's largest food
retailer, Kaspi e-Grocery helps households with their day-to-day
shopping needs. Marketplace offers a unified digital experience,
irrespective of online or offline and is relevant across
practically all areas of consumer spending.
Just as with our Payments Platform, the expansion of our
Marketplace merchant base was an important focus in 2022. During
the fourth quarter of 2022, Marketplace merchants increased to
317K, equivalent to 159% year-over-year growth. Marketplace
consumers increased 28% year-over-year to 6.1 million.
Over 2022 Marketplace GMV momentum accelerated, with growth
reaching 60% year-over-year and GMV of KZT1 trillion in the fourth
quarter of 2022. For full-year 2022, GMV increased 56% to KZT2.9
trillion.
In November, we once again held Kaspi Juma, our bi-annual
nationwide shopping festival. Juma gives our consumers the
opportunity to shop on highly affordable terms and helps merchants
boost their sales growth. November's Juma broke all records, with
GMV up by almost 50% and items purchased nearly 130% higher,
compared to the previous Juma held just several months earlier.
Given how much Juma is loved by consumers and merchants alike, we
are already planning for this year's events to raise the bar
again.
m-Commerce continues to deliver excellent results with fourth
quarter and full-year 2022 GMV growth of 60% and 61% year-over-year
respectively. m-Commerce GMV was KZT605 billion and KZT1.7 trillion
during the fourth quarter and full-year 2022 respectively.
e-Commerce demand was extremely strong with orders up 203%
year-over-year in the fourth quarter of 2022. GMV increased 57%
year-over-year to KZT356 billion during the same period, with
growth accelerating from 23% and 32% in the second and third
quarters respectively. GMV growth below order growth, reflects our
efforts to expand the breadth and depth of everyday items like
grocery, at lower price points, in order to enhance Marketplace's
long-term competitive position. During the fourth quarter of 2022,
e-Commerce SKUs increased 1.9x year-over-year to 2.8 million.
Kaspi Travel's GMV increased 1.9x year-over-year to KZT63
billion during the fourth quarter of 2022, with ticket sales up
1.8x to 3.1 million. For full-year 2022, Travel's GMV increased
183% year-over-year to KZT231 billion. Travel's GMV accounted for
6% and 8% of Marketplace GMV during the fourth quarter and
full-year 2022, with lower share in the final quarter reflecting
both lower seasonal demand for high-value air travel and higher
demand for traditional e-commerce. In 2023 we are broadening Kaspi
Travel's proposition, with the addition of international package
holidays and Travel's fast growth should once again remain additive
to Marketplace GMV growth. The addition of package holidays is
take-rate enhancing.
During the fourth quarter of 2022, e-Grocery GMV reached KZT8.8
billion, up 8.1x year-over-year. Over the same period, 243K
consumers made 668K orders, up 6.7x and 5.2x respectively. Average
ticket is currently around $25. Having delivered strong growth
since launch in 2021, e-Grocery is now one of our most important
priorities and expected to be additive to mid-term growth.
Our investment in free nationwide delivery for consumers is
helping us attract new e-commerce consumers and merchants and gives
Marketplace another long-term competitive advantage. In the fourth
quarter of 2022, orders delivered increased 241% year-over-year.
Higher delivery volumes enable us to reduce the unit cost of
delivery, making it easier and more profitable for our merchants to
sell throughout Kazakhstan. Delivery now accounts for 94% of
orders, was free for the consumer on 97% of orders, with 46% of
orders delivered within 48 hours.
We started to roll out Kaspi Postomat in late-2021 and had 3,348
lockers by the end of December 2022. These lockers are installed in
86 cities and accounted for 31% of e-Commerce deliveries, during
the fourth quarter of 2022. Given positive customer feedback we're
now planning for around 8,000 Postomats by the end of this
year.
Postomats increase the share of successful 1(st) time
deliveries, lower the cost of last-mile-delivery and will help us
protect Marketplace's long-term profitability. Postomats are also a
key part of our plan to make commerce in Kazakhstan more
environmentally sustainable.
Marketplace take-rate increased to 8.8% from 8.4% in the fourth
quarter of 2021 as merchants paid a higher take-rate to participate
in Juma. Marketplace revenue growth was 67% year-over-year,
resulting in revenue of KZT91 billion during the same period. For
full-year 2022, Marketplace take-rate was stable year-over-year at
8.2%, with full-year 2022 Marketplace revenue growing 56% to KZT240
billion.
Take-rate will vary from quarter-to-quarter due to the timing of
promotional events, amongst other factors. However, on a twelve
month view stable year-over-year take-rate, reflects the opposing
effects of take-rate dilution from Kaspi Travel and to a lesser
extent Kaspi e-Grocery, offset by take-rate accretion from Juma in
the second half of the year. That said, Travel's take-rate
increased to 4.1% from 3.5% in the fourth quarter of 2021, due to
the growing share of higher take-rate railway bookings.
During the fourth quarter of 2022, Marketplace Platform adj. net
income reached KZT60 billion, representing a 68% increase
year-over-year. Net income profitability was 66.1% up from 65.8% in
the same period in 2021, with increased investment in free consumer
delivery fully offset by flat sales and marketing costs and tight
control of technology and product development costs. For full-year
2022, Marketplace adj. net income increased 53% year-over-year to
KZT156 billion, with profitability of 65.1% down slightly from
66.2% in 2021, due almost entirely to investment in free delivery,
which increased more than 100% year-over-year, but partially
mitigated by a slight decline year-over-year in sales and marketing
costs.
In 2023 we expect Marketplace Platform to deliver GMV growth of
around 35% year-over-year. Items sold will continue growing faster
than GMV. However, as new lower ticket categories grow in share,
faster GMV growth is coming through and we expect e-Commerce GMV
growth to be faster this year than in 2022. Take-rate is expected
to increase year-over-year to around 8.5%, which reflects faster
growth from high take-rate e-Commerce, as well as higher
monetisation of Kaspi Marketing and Kaspi Delivery, partially
offset by Travel's higher share of GMV. Adj. net income
profitability is expected to be around 60%, despite ongoing
investments in free consumer delivery and e-Grocery. The impact of
e-Grocery on both top-line growth and bottom line profitability is
small at this stage.
Looking into the medium-term, as with our Payments Platform,
Marketplace Platform cohort analysis continues to show strong
growth across every consumer cohort. Enhanced shopping categories
lead to more transactions per consumer and help us attract new
consumers. Having substantially grown our Marketplace merchant base
over the last two years, our focus will pivot to helping existing
merchants sell more. Earlier-stage initiatives like Kaspi
Marketing, Kaspi Delivery and SME financing are a big part of this
and should ensure strong growth from Marketplace Platform in 2023
and beyond.
Investment in e-Grocery
Kaspi.kz's mission is to improve people's lives by developing
innovative digital services. This ambition is not confined to just
one or a limited number of sectors. When we launched trials of
e-Grocery 18 months ago, we were attracted by the large market
opportunity. The modern grocery market in Kazakhstan was valued at
$12 billion in 2021 and informal grocery is estimated to be similar
in size. With the online food retail market still nascent, we also
saw a segment where consumers had yet to experience the benefits of
a high-quality, digital shopping experience. With the Kaspi.kz
Super App, we are now aiming to transform the food shopping
experience in Kazakhstan.
We chose to form a joint venture with Magnum because they're the
country's no.1 food retailer, with a nationwide presence. We have
now taken steps to formalise this relationship, with Kaspi.kz
committing invest around KZT20-25 billion per annum over the next 3
years. Our equity ownership in e-Grocery is 90%, with the remaining
10% owned by Magnum and e-Grocery's management. Magnum will
continue to bring their food retail expertise, especially market
leading purchasing terms. Our main role remains the front-end user
experience, while our data expertise allows us to efficiently
define assortment and pricing. With the control that we now have,
we intend to execute fast and can ensure all aspect of the consumer
experience meet Kaspi.kz's high standards.
e-Grocery offers the right assortment, competitive prices and
the convenience that comes from integration with the Kaspi.kz Super
App. The investment capex that we're planning is small in the
context of Kaspi.kz's financials and the 2023 financial impact,
incorporated into Marketplace guidance is also small. However, if
we execute well, the medium-term opportunity is sizeable.
We launched e-Grocery jointly with Magnum in Almaty around 18
months ago and now operate three dark stores, including one
location in Astana. Our first dark store, despite still being in
the ramp-up stage became EBITDA positive within 5 quarters, with
subsequent stores expected to follow a similar trajectory. With
lessons learnt we have streamlined our processes and now plan to
rollout dark store coverage across Kazakhstan.
Funds invested by Kaspi.kz will be used to open dark stores in
around 15 locations and e-Grocery's working capital
requirements.
A leading e-Grocery offering will mean higher Super App
engagement, a better consumer proposition in every possible way and
faster Kaspi.kz financial growth for many years to come. Here too,
as e-Grocery becomes a bigger share of our business, we will
provide more details, as is our normal practice.
Fintech Platform
TFV origination back on track, CoR better than guided &
strong deposit base growth
TFV up 27% YoY, Buy-Now-Pay-Later 51% of TFV and 1.6% credit CoR
in 4Q22; TFV up 25% YoY, Buy-Now-Pay-Later 47% of TFV and 1.9% CoR
in FY22
Our Fintech Platform is fundamentally integrated with our
Payments and Marketplace Platforms. 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 transaction activity. Kaspi Deposit accounts
fund our origination and the attractiveness of our full range of
Super App services, allow us to ensure our funding is sufficient to
meet origination and transaction demand.
During the fourth quarter of 2022, Total Finance Value (TFV)
increased 27% year-over-year, reaching KZT1.8 trillion. Following
our more cautious approach to origination in the first half of
2022, approval levels have been back to normal since the summer and
our Merchant & Micro Business financing is expected to continue
scaling fast in 2023. For full-year 2022, TFV increased 25% to
KZT5.4 trillion and we finished the year with 5.6 million loan
consumers, up 15% year-over-year.
Our average net loan portfolio increased by 32% year-over-year,
to KZT3.0 trillion during the fourth quarter of 2022. Our deposit
base experienced substantial growth in the second half and in the
fourth quarter of 2022, average savings increased by 35%
year-over-year to KZT3.6 trillion. Deposit consumers increased 35%
to 3.8 million. Following strong growth in deposit consumers and
deposit inflows, our fourth quarter 2022 loan to deposit ratio fell
to 79% from 88% in same period in 2021 and 83% in the third quarter
of 2022.
During 2022 we raised Kaspi Deposit rates and higher funding
costs are resulting in lower near-term Fintech profitability.
However, more deposit consumers and an enlarged funding base, will
enable us drive faster origination and more transactions over the
medium-term. Hence, we expect our loan to deposit ratio to
gradually move up again. For full-year 2022, our average net loan
portfolio increased 45% year-over-year and average deposits
increased 28%.
Portfolio conversion of 2.0x in the fourth quarter of 2022, is
in line with trends throughout the year, reflecting ongoing high
early repayments levels, as financially healthy consumers borrow,
transact and repay quickly. With no deterioration in consumer
credit quality, we expect to continue benefiting from rapid
portfolio conversion in 2023.
Low risk, small ticket, short duration Buy-Now-Pay-Later (BNPL)
loans accounted for 51% of TFV in the fourth quarter of 2022,
making them our most important Fintech Platform product. Kaspi Juma
led to an acceleration in the share of BNPL year-over-year,
although the growing importance of BNPL is a long-run trend. Our
Merchant Finance products are also becoming more important and
accounted for 12% of TFV in the fourth quarter of 2022. We expect
the share of lending to merchants to step up again in 2023.
Fintech yield was 26.0% and 26.6% during the fourth quarter and
full-year 2022 respectively, reflecting the growing share of lower
yielding BNPL and Merchant Finance loans and consistent with our
full-year 2022 guidance.
During the fourth quarter and full-year 2022, our underlying
credit cost of risk was 1.6% and 1.9% respectively, with credit
quality consistently high throughout the year. Additional macro
provisions taken out of an abundance of caution in the first
quarter of 2022, where fully reversed. Low credit cost of risk in
part reflects the low-risk nature of our products, especially BNPL
and Merchant financing is also low risk, with repayments taken
directly from the merchant's sales transacted through Kaspi.kz.
In 2021 we wrote off loans delinquent by more than 761 days.
However, we always seek to improve the efficiency of our collection
processes, including for loans previously written off. Our success
in this regard, has resulted in a meaningful increase in the
probability of collection for amounts overdue up to 1,080 days.
Given higher cash flow expectations, during the fourth quarter of
2022, we took the decision to change our write off policy to loans
delinquent more than 1,080 days. This resulted in previously
written off loans delinquent up to 1,080 days, being recovered on
balance sheet. The resulting increase in both gross NPL and total
allowance for impairment was equivalent to KZT27 billion. Going
forward days to write off, our collection statistics and
provisioning policy are aligned, at just under 3 years.
Fintech Platform revenue increased by 27% year-over-year,
reaching KZT210 billion during the fourth quarter of 2022. As a
result of lower Fintech origination earlier in the year and a
higher share of lower yielding BNPL, Fintech revenue growth
moderated, but remained robust. For full year 2022, Fintech
Platform revenue increased by 32% year-over-year, reaching KZT745
billion.
In the fourth quarter of 2022, Fintech Platform's adj. net
income increased by 7% year- over- year to reach net income of
KZT71 billion. Adj. net income margin of 34.0% compares with 40.4%
in the fourth quarter of 2021. Declining profitability mainly
resulted from higher year- over-year funding costs, with interest
expense up 95% year-over-year. Higher funding costs were partially
offset by lower provisioning and lower sales and marketing, which
declined by 23% and 27% year-over-year respectively. When interest
rates normalise, we'd expect newly acquired customers to stay with
us, resulting in a business and margins recovering rapidly. For
full-year 2022, Fintech Platform adj. net income increased by 14%
year-over-year, reaching KZT254 billion, with adj.net income margin
of 34.1% compared with 39.3% in 2021.
We expect TFV origination to accelerate during the first half of
2023 and for the full-year to increase around 35% year-over-year.
Although we will continue to prioritise our BNPL product, we also
expect Kaspi Business merchant and SME financing products to keep
scaling rapidly. BNPL integrated with Kaspi Travel is also expected
to see strong growth, especially as package holidays gather
momentum. Changing produce mix is reflected in our yield guidance
of around 25%. With consumer credit quality high, portfolio
conversion and cost of risk trends are expected to be broadly
similar to 2022. Fintech adj.net income profitability of around
30%, primarily reflects the near-term impact of higher funding
costs.
Looking beyond 2023, our Fintech Platform remains extremely well
positioned, as evidenced by this year's growth in loan and deposit
customers, as well as deposit inflows. Structural top-line growth
will be driven by BNPL and especially merchant and SME financing,
which is underpenetrated in Kazakhstan. Bottom-line growth will
benefit through-the-cycle, from normalising in funding costs and we
see further potential to improve our risk management capabilities,
which all combined points to a robust mid-term outlook for
Fintech.
Guidance for full-year 2023
GDR buyback program
Our first GDR buyback program, completed in July 2022, totalled
998,429 GDR's and was equivalent to $51 million. Our second buyback
program, completed in October 2022, totalled 788,153 GDR's and was
equivalent to $45 million. Our most recent buyback program, which
ran from October 2022 and was completed last week, amounted to
1,131,380 GDR's for $84 million.
Share based compensation expense
Following our IPO, we introduced an LTIP program in 2020. The
program has subsequently been expanded and now includes 107 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.
Recognition of share-based compensation expenses during 2022
amounted to KZT19,984 million.
In March 2022, share options in the quantity of 499,472 shares
were exercised from treasury shares under the share-based LTIP
plan. Outstanding share options as at 31 December 2022 were
2,266,166.
Total GDR's outstanding as at 31 December 2022 were 190,309,970
and total GDR's outstanding as at 25 February 2023 were
189,768,733.
Conference call information
On Monday, 27 February 2023 the management will hold a
conference call and webcast at 1.00pm (London) (8.00am U.S. Eastern
Time, 7.00pm Astana time) to review and discuss the company's
results for the quarter and twelve months ending December 31
2022.
To pre-register for this call, please go to the following
link:
https://www.netroadshow.com/events/login?show=0c61c954&confId=46459
You will receive your access details via email.
Kaspi.kz income statement
Kaspi.kz consolidated statements
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
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR TRMFTMTTTMMJ
(END) Dow Jones Newswires
February 27, 2023 02:00 ET (07:00 GMT)
Kaspikz JSC (LSE:KSPI)
Historical Stock Chart
From May 2024 to Jun 2024
Kaspikz JSC (LSE:KSPI)
Historical Stock Chart
From Jun 2023 to Jun 2024