Joint Stock Company Kaspi.kz Q2 FY2025 earnings call

Management Statement and Operational Highlights

• Payments continue to perform well with strong TPV, revenue, and net income growth.
• Marketplace shows strong growth in GMV, revenue, and net income; e-Grocery is the fastest-growing e-commerce business with significant GMV and transaction growth.
• Fintech generates strong volumes, with deposit growth on fixed-term deposits. Kaspi QR volumes up 128%.
• Launched restaurant business with high NPS, positive feedback from merchants and consumers.
• Expanded advertising tools for merchants, with ad revenue up 67%.
• Smartphone growth temporarily impacted by registration requirements, but other e-commerce verticals show strong growth.
• Launched domestic tours in Kazakhstan with 10x growth in June.
• Hepsiburada in Turkey shows improvement in volumes, revenue, and EBITDA.

Segment Performance

• Payments: TPV +21%, revenue +16%, net income +19%.
• Marketplace: GMV +15%, revenue +25%, net income +13%; e-Grocery GMV +57% year-over-year, with over 1.1 million consumers and 3.4 million transactions.
• Fintech: Volumes +17%, revenue +21%, net income +8%; fixed-term deposits saw 207% growth in amounts and 263% in customers.
• Hepsiburada (Turkey): Volumes up 7% in Q2, GMV up 16%, revenue up 23%, EBITDA up 42%.

Guidance

• Kazakhstan third quarter started well, on track with full-year guidance.
• Hepsiburada acquisition on track, banking license acquisition expected in H2 2025.
• Capital returns to shareholders expected in 2026, balancing investments and distributions.

Risks

• Temporary disruption in smartphone growth due to registration requirements.
• High interest rates impacting Fintech net income.
• One-offs related to credit provisioning in Hepsiburada.

Question and Answer

• Q: About product improvements in Hepsiburada A: Focus on bringing existing services to Kaspi KZ's standards, prioritizing core business like e-commerce and related services this year.
• Q: Growth initiatives in Kazakhstan A: Underpenetrated market, vertical-specific strategies; focus on delivering value through verticals like clothing, beauty, and e-grocery with a focus on quality.
• Q: Fintech funding costs, asset quality, capital deployment A: Funding costs increased, but asset quality trends stable; balance between investments for growth and capital returns to shareholders.
• Q: Smartphone impact, marketplace promotions, sustainable growth A: Smartphone demand will recover, less promotions for Juma to focus on vertical growth; other verticals show healthy growth indicating marketplace potential.
• Q: Dividends, banking license, Fintech bottom line A: Dividends expected in 2026; banking license to enable innovative financial services; Fintech profitability follows volume growth despite funding costs.