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Operating Segments | 12 Months Ended
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Jun. 30, 2023
Operating Segments [Abstract] |
Operating Segments | 21. OPERATING SEGMENTS Operating segments The Company discloses segment information as reflected in the management information systems reports that its chief operating decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, and the countries in which the entity holds material assets or reports material revenues. The Company currently has two reportable segments: Merchant and Consumer. The Company operates mainly within South Africa. The Company’s reportable segments offer different products and services and require different resources and marketing strategies but share the Company’s assets. The Merchant segment includes activities related to the provision of goods and services provided to corporate and other juristic entities. The Company earns fees from processing activities performed for its customers and revenue generated from the distribution of prepaid airtime. The Company provides cash management and payment services to merchant customers through a digital vault (safe asset) which is located at the customer’s premises and through which the Company is able to provide the services which generate processing fee revenue. The Company provides its customers with transaction processing services that involve the collection, transmittal and retrieval of all transaction data. This segment also includes sales of hardware and licenses to customers. Hardware includes the sale of POS devices, SIM cards and other consumables which can occur on an ad hoc basis. Licenses include the right to use certain technology developed by the Company. The Consumer segment includes activities related to the provision of financial services to customers, including a bank account, loans and insurance products. The Company charges monthly administration fees for all bank accounts. Customers that have a bank account managed by the Company are issued cards that can be utilized to withdraw funds at an ATM or to transact at a merchant point of sale device (“POS”). The Company earns processing fees from transactions processed for these customers. The Company also earns fees on transactions performed by other banks’ customers utilizing its ATM or POS. The Company provides short-term loans to customers in South Africa for which it earns initiation and monthly service fees. The Company writes life insurance contracts, primarily funeral-benefit policies, and policy holders pay the Company a monthly insurance premium. 21. OPERATING SEGMENTS (continued) Reallocation of certain activities in Other to Merchant During the second quarter of fiscal 2023, certain processing activities performed outside South Africa which were within the Company’s Other operating segment commenced reporting to management within its Merchant operating segment as part of the integration of Connect. The Company has allocated these operations from the Other reporting segment to Merchant in its reportable segments during the second quarter of fiscal 2023. The Company no longer reports an Other reporting segment and previously reported information has been restated. The reconciliation of the reportable segment’s revenue to revenue from external customers for the years ended June 30, 2023, 2022 and 2021, respectively, is as follows: Revenue Reportable Segment Inter-segment Unallocated From external customers Merchant $ 463,701 $ - $ - $ 463,701 Consumer 62,801 - - 62,801 Unallocated - - 1,469 1,469 Total for the year ended June 30, 2023 $ 526,502 $ - $ 1,469 $ 527,971 Merchant $ 156,689 $ 12 $ - $ 156,677 Consumer 65,932 - - 65,932 Total for the year ended June 30, 2022 $ 222,621 $ 12 $ - $ 222,609 Merchant $ 62,944 $ - $ - $ 62,944 Consumer 66,149 - - 66,149 Unallocated - - 1,693 1,693 Total for the year ended June 30, 2021 $ 129,093 $ - $ 1,693 $ 130,786 The Company evaluates segment performance based on segment earnings before interest, tax, depreciation and amortization (“EBITDA”), adjusted for items mentioned in the next sentence (“Segment Adjusted EBITDA”). The Company does not allocate once- off items, stock-based compensation charges, certain lease charges (“Lease adjustments”), depreciation and amortization, impairment of goodwill or other intangible assets, other items (including gains or losses on disposal of investments, fair value adjustments to equity securities, fair value adjustments to currency options), interest income, interest expense, income tax expense or loss from equity- accounted investments to its reportable segments. Group costs generally include: employee related costs in relation to employees specifically hired for group roles and related directly to managing the US-listed entity; expenditures related to compliance with the Sarbanes-Oxley Act of 2002; non-employee directors’ fees; legal fees; group and US-listed related audit fees; and directors and officer’s insurance premiums. Once-off items represents non-recurring expense items, including costs related to acquisitions and transactions consummated or ultimately not pursued. Unrealized loss FV for currency adjustments represents foreign currency mark-to-market adjustments on certain intercompany accounts. The Lease adjustments reflect lease charges and the Stock-based compensation adjustments reflect stock-based compensation expense and are both excluded from the calculation of Segment Adjusted EBITDA and are therefore reported as reconciling items to reconcile the reportable segments’ Segment Adjusted EBITDA to the Company’s loss before income tax expense. 21. OPERATING SEGMENTS (continued) The reconciliation of the reportable segments’ measures of profit or loss to loss before income taxes for the years ended June 30, 2023, 2022 and 2021, respectively, is as follows: 2023 2022 2021 Reportable segments measure of profit or loss $ 36,845 $ (9,028) $ (20,551) Operating loss: Unallocated - - (10,899) Operating loss: Group costs (9,109) (8,587) (6,965) Once-off costs (1,922) (8,088) (6,618) Unrealized Loss FV for currency adjustments (222) - - Lease adjustments (2,906) (3,955) (4,148) Stock-based compensation charge adjustments (7,309) (2,962) (344) Depreciation and amortization (23,685) (7,575) (4,347) Impairment loss (7,039) - - Gain related to fair value adjustment to currency options - 3,691 - Gain on disposal of equity securities - 720 - Loss on disposal of equity-accounted investment (Note 9) (205) (376) (13) Change in fair value of equity securities (Note 3) - - 49,304 Loss on disposal of equity-accounted investment - Bank Frick (Note 9) - - (472) Interest income 1,853 2,089 2,416 Interest expense (18,567) (5,829) (2,982) Loss before income taxes $ (32,266) $ (39,900) $ (5,619) The following tables summarize segment information for the years ended June 30, 2023, 2022 and 2021: 2023 2022 2021 Reportable segment revenue Merchant $ 463,701 $ 156,689 $ 62,944 Consumer 62,801 65,932 66,149 Total reportable segment revenue 526,502 222,621 129,093 Segment Adjusted EBITDA Merchant 33,531 12,646 5,411 Consumer (1) 3,314 (21,674) (25,962) Total Segment Adjusted EBITDA 36,845 (9,028) (20,551) Depreciation and amortization Merchant 7,422 2,186 866 Consumer 1,114 1,660 3,071 Subtotal: Operating segments 8,536 3,846 3,937 Group costs 15,149 3,729 359 Unallocated - - 51 Total 23,685 7,575 4,347 Expenditures for long-lived assets Merchant 12,986 2,846 852 Consumer 3,170 1,712 3,433 Subtotal: Operating segments 16,156 4,558 4,285 Group costs - - - Total $ 16,156 $ 4,558 $ 4,285 (1) Consumer Segment Adjusted EBITDA for the year ended June 30, 2022, includes reorganization costs of $ 5.9 million (refer also Note 1). 21. OPERATING SEGMENTS (continued) The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation and segment asset allocation is therefore not presented. Long-lived assets based on their geographic location as of June 30, 2023, 2022 and 2021, are presented in the table below: Long-lived assets 2023 2022 2021 South Africa $ 300,104 $ 359,725 $ 50,754 India - investment in MobiKwik (Note 9) 76,297 76,297 76,297 Rest of world 2,197 2,811 6,962 Total $ 378,598 $ 438,833 $ 134,013

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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