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Operating Segments
 9 Months Ended
Mar. 31, 2024
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”).
The reconciliation of the reportable segment’s revenue to revenue from external customers for the three months ended March 31,
2024 and 2023, is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
Reportable
Segment
Inter-
segment
From
external
customers
Merchant
$
121,013
$
723
$
120,290
Consumer
17,904
-
17,904
Total for the three
 
months ended March 31, 2024
$
138,917
$
723
$
138,194
Merchant
$
118,092
$
-
$
118,092
Consumer
15,876
-
15,876
Total for the three
 
months ended March 31, 2023
$
133,968
$
-
$
133,968
17.
 
Operating segments (continued)
Operating segments (continued)
The reconciliation of the reportable segment’s revenue to revenue from external customers for the nine months ended March 31,
2024 and 2023, is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
Reportable
Segment
Inter-
segment
From
external
customers
Merchant
$
370,244
$
2,259
$
367,985
Consumer
50,191
-
50,191
Total for the nine
 
months ended March 31, 2024
$
420,435
$
2,259
$
418,176
Merchant
$
348,508
$
-
$
348,508
Consumer
46,314
-
46,314
Total for the nine
 
months ended March 31, 2023
$
394,822
$
-
$
394,822
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’s reportable segments’
measure of
 
profit or
 
loss. The
 
Company does
 
not allocate
 
once-off items,
 
stock-based compensation
 
charges, certain
 
lease expenses
(“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 (earnings) 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 expenses 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’ measure of profit or loss to loss before income taxes for the three and
 
nine months
ended March 31, 2024 and 2023, is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
Nine months ended
March 31,
March 31,
2024
2023
2024
2023
Reportable segments' measure of profit or loss
 
$
12,752
$
9,939
$
34,934
$
26,136
Operating loss: Group costs
(2,199)
(2,293)
(6,032)
(6,849)
Once-off costs
(907)
(1,141)
(169)
(1,858)
Unrealized Loss FV for currency adjustments
(121)
(43)
(101)
(43)
Lease adjustments
(850)
(696)
(2,224)
(2,255)
Stock-based compensation charge adjustments
(2,090)
(1,644)
(5,653)
(5,955)
Depreciation and amortization
(5,791)
(5,975)
(17,460)
(17,892)
Reversal of allowance of EMI doubtful debt
-
-
250
-
Gain on disposal of equity-accounted investments
-
(329)
-
(193)
Interest income
 
628
469
1,562
1,269
Interest expense
 
(4,581)
(4,984)
(14,312)
(13,408)
Loss before income tax expense
$
(3,159)
$
(6,697)
$
(9,205)
$
(21,048)
17.
 
Operating segments (continued)
Operating segments (continued)
The following
 
tables summarize
 
supplemental
 
segment information
 
for the
 
three and
 
nine months
 
ended March
 
31, 2024
 
and
2023:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
Nine months ended
March 31,
March 31,
2024
2023
2024
2023
Revenues
Merchant
$
121,013
$
118,092
$
370,244
$
348,508
Consumer
17,904
15,876
50,191
46,314
Total reportable segment
 
revenue
138,917
133,968
420,435
394,822
Segment Adjusted EBITDA
Merchant
(1)
8,394
8,290
25,148
25,303
Consumer
(1)
4,358
1,649
9,786
833
Total Segment Adjusted
 
EBITDA
12,752
9,939
34,934
26,136
Depreciation and amortization
Merchant
2,050
1,898
6,169
5,522
Consumer
179
288
527
811
Subtotal: Operating segments
 
2,229
2,186
6,696
6,333
Group costs
3,562
3,789
10,764
11,559
Total
 
5,791
5,975
17,460
17,892
Expenditures for long-lived assets
Merchant
2,797
3,020
7,638
10,545
Consumer
146
1,697
312
2,665
Subtotal: Operating segments
 
2,943
4,717
7,950
13,210
Group costs
-
-
-
-
Total
 
$
2,943
$
4,717
$
7,950
$
13,210
(1)
 
Segment
 
Adjusted
 
EBITDA
 
for
 
Consumer
 
includes
 
retrenchment
 
costs of
 
$
0.01
 
million
 
(ZAR
0.1
 
million)
 
for
 
the
 
three
months
 
ended
 
March
 
31,
 
2024.
 
Segment
 
Adjusted
 
EBITDA
 
for
 
Merchant
 
includes
 
retrenchment
 
costs
 
of
 
$
0.2
 
million
 
(ZAR
4.7
million) and Consumer includes retrenchment costs of $
0.2
 
million (ZAR
2.9
 
million) for the nine months ended March 31, 2024.
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.