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Operating Segments
 3 Months Ended
Sep. 30, 2023
Operating Segments [Abstract]  
Operating Segments
17.
 
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. A description of the Company’s operating segments is contained in
Note 21
 
to the Company’s
 
audited consolidated
 
financial statements
 
included in
 
its Annual Report
 
on Form 10-K
 
for the year
 
ended
June 30, 2023.
The
 
Company
 
analyzes
 
its
 
business
 
and
 
operations
 
in
 
terms
 
of
two
 
inter-related
 
but
 
independent
 
operating
 
segments:
(1) Consumer Division (“Consumer”) and (2) Merchant Division (“Merchant
 
”).
 
17.
 
Operating segments
 
(continued)
Operating segments (continued)
The reconciliation of the
 
reportable segment’s revenue to revenue from external
 
customers for the three
 
months ended September
30, 2023 and 2022, is as follows:
Revenue
Reportable
Segment
Inter-
segment
From
external
customers
Merchant
$
121,361
$
852
$
120,509
Consumer
15,580
-
15,580
Total for the three
 
months ended September 30, 2023
$
136,941
$
852
$
136,089
Merchant
$
109,782
$
-
$
109,782
Consumer
15,004
-
15,004
Total for the three
 
months ended September 30, 2022
$
124,786
$
-
$
124,786
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), 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.
The reconciliation of
 
the reportable segments’
 
measures of profit or
 
loss to loss before
 
income tax expense for
 
the three months
ended September 30, 2023 and 2022, is as follows:
Three months ended
September 30,
2023
2022
Reportable segments measure of profit or loss
 
$
10,541
$
6,499
Operating loss: Group costs
(1,822)
(2,300)
Once-off costs
(78)
(598)
Unrealized Loss FV for currency adjustments
(102)
-
Lease adjustments
(696)
(812)
Stock-based compensation charge adjustments
(1,759)
(1,462)
Depreciation and amortization
(5,856)
(5,998)
Reversal of allowance of EMI doubtful debt
250
-
Gain on disposal of equity-accounted investments
-
248
Interest income
 
449
411
Interest expense
 
(4,909)
(4,036)
Loss before income tax expense
$
(3,982)
$
(8,048)
17.
 
Operating segments (continued)
Operating segments (continued)
The following
 
tables summarize
 
segment
 
information
 
that is
 
prepared
 
in accordance
 
with GAAP
 
for
 
the three
 
months
 
ended
September 30, 2023 and 2022:
Three months ended
September 30,
2023
2022
Revenues
Merchant
$
121,361
$
109,782
Consumer
15,580
15,004
Total reportable segment
 
revenue
136,941
124,786
Segment Adjusted EBITDA
Merchant
(1)
8,061
7,893
Consumer
(1)
2,480
(1,394)
Total Segment Adjusted
 
EBITDA
10,541
6,499
Depreciation and amortization
Merchant
2,078
1,825
Consumer
169
245
Subtotal: Operating segments
 
2,247
2,070
Group costs
3,609
3,928
Total
 
5,856
5,998
Expenditures for long-lived assets
Merchant
2,763
3,873
Consumer
46
628
Subtotal: Operating segments
 
2,809
4,501
Group costs
-
-
Total
 
$
2,809
$
4,501
(1)
 
Segment
 
Adjusted
 
EBITDA
 
for
 
Merchant
 
includes
 
retrenchment
 
costs
 
of
 
$
0.2
 
million
 
(ZAR
4.6
 
million)
 
and
 
Consumer
includes retrenchment costs of $
0.1
 
million (ZAR
1.5
 
million) for the three months ended September 30, 2023.
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.