Lesaka Technologies, Inc. (NASDAQ:LSAK) Q2 2024 Earnings Call Transcript

Ali Mazanderani: No, thanks, Chris. I mean I need to echo what you say and say that there is opportunities in both subsectors that are represented there, and each will be assessed on a case-by-case basis.

Chris Meyer: Thank you.

Operator: Great. Last question right now, and this comes from Jared Houston of All Weather Capital. Can you guys provide an outlook for net debt-to-EBITDA post Touchside acquisition?

Chris Meyer: Naeem, do you want to address that?

Naeem Kola: Yeah, sure. Thanks, Chris. Yeah. Look, so we’re not seeing any material impact on our net debt-to-EBITDA ratio because of the Touchside acquisition. I mean, as we mentioned, the acquisition has been fully funded from our current resources, and we don’t see an impact on that material impact coming from that.

Chris Meyer: Thanks, Naeem.

Operator: Great. And this — obviously, Raj and Theo both asked about M&A. But Jared wants to know, as you think about M&A, will equity be a part of that? Will you — how will you fund M&A? How are you thinking about that strategically?

Chris Meyer: [indiscernible]. And one of the aspects will be how to fund a particular transaction. And so equity would play into that. So as much as debt or any other form of financing of transactions. So where it’s appropriate, we would consider it, and we consider it against a number of metrics that we need to think about in that regard.

Operator: Okay. Thank you. And here’s my last question from Jared. Can you provide any updates on the potential of mobile click and a status update on where that stands?

Naeem Kola: Yeah, sure. Yeah. Look, I think as we mentioned, and it’s public information that they’ve now submitted a rate hearing and the way to come through for an IPO in the Indian market. I mean where it stands at the moment is that, obviously, we’re watching it very closely, and we’re in close contact with management to ascertain how they’re looking at this. And I think in terms of performance of MobiKwik, the performance of the business has been strong. And going forward, we would keep a watchful eye in terms of valuations as it comes closer to them doing and launching an IPO.

Operator: Well, thank you for that update. And that concludes the Q&A. Those are all the questions. We appreciate everybody for participating. Thank you, management.