Kaspi.kz 1Q 2025 Financial Results

Rhea-AI Summary

Kaspi.kz (NASDAQ: KSPI) reported its Q1 2025 financial results, showing solid growth across its platforms. The company achieved 21% YoY revenue growth and 16% YoY net income growth in Kazakhstan operations. Key highlights include: Payments TPV up 23%, Marketplace revenue up 33% with e-Grocery GMV surging 64% YoY, and Fintech revenue growth of 18%. The company completed its acquisition of 65.41% of Hepsiburada in January 2025, with an initial payment of $600M and $526.9M due within 6 months. Kaspi.kz successfully placed a $650M 5-year Eurobond at 6.250%. However, due to higher interest rates and macro-economic challenges, the company revised its 2025 net income growth guidance from 20% to 15% YoY.

Positive

• Revenue growth of 21% YoY and net income growth of 16% YoY in Kazakhstan operations
• Strong payment metrics with TPV up 23% and transactions up 17% YoY
• Marketplace revenue growth of 33% outpacing GMV growth of 20%
• e-Grocery segment showing exceptional performance with 64% YoY GMV growth
• Successful placement of $650M Eurobond demonstrating strong market confidence
• Acquisition of 65.41% stake in Hepsiburada expanding presence in Türkiye
• Agreement to acquire Rabobank A.Ş. to enable banking services in Türkiye

Negative

• Increased macro-provisioning leading to higher Cost of Risk (0.6% vs 0.5% YoY)
• Higher interest rates expected to increase deposit costs
• Hepsiburada experiencing negative impact from politically driven consumption boycotts
• Consolidated net loss of KZT6 billion from Türkiye operations
• Reduced guidance for 2025 net income growth from 20% to 15%
• New 10% tax likely on government securities revenue
• Temporary reduction in e-Commerce GMV growth due to new smartphone registration requirements

Insights

Financial Analyst

Kaspi.kz posts solid 21% revenue and 16% profit growth despite macro pressures, but reduces guidance amid challenges in Türkiye and Kazakhstan.

Kaspi.kz delivered a 21% year-over-year revenue increase and 16% profit growth in Q1 2025, demonstrating its Super App ecosystem continues to generate strong engagement with 75 monthly transactions per active consumer. The results reveal a mixed performance across their three core platforms.

The Payments platform continues to be a standout performer with transaction volume up 23% and profit growth outpacing revenue (21% vs 16%), showcasing excellent operational leverage. This indicates their payments infrastructure is increasingly cost-efficient at scale.

The Marketplace platform shows impressive revenue growth of 33%, significantly exceeding GMV growth of 20%. This revenue outperformance stems from successful monetization of adjacent services like Kaspi Delivery, Advertising, and Classifieds. E-Grocery emerged as the star performer with 64% GMV growth, indicating Kaspi's expanding footprint in daily consumer spending.

However, their Fintech platform faces headwinds. Despite 17% TFV growth and 18% revenue growth, higher interest rates required increased macro-provisioning, raising cost of risk to 0.6% from 0.5% last year. This pressured bottom-line growth to just 8%, significantly underperforming other segments.

The Türkiye expansion through Hepsiburada acquisition shows early challenges. The company reported a consolidated net loss of KZT6 billion related to Hepsiburada, impacted by "politically driven consumption boycotts" and investments in early-stage lending products. This regional expansion appears riskier than initially positioned.

Most concerning is the reduced full-year guidance from 20% to 15% net income growth, citing smartphone registration requirements in Kazakhstan affecting Marketplace performance, plus higher interest rates and a likely new 10% tax on government securities revenue. This suggests multiple compounding headwinds to profitability.

The successful $650 million Eurobond placement provides financial flexibility, but the company faces increasing regulatory and macroeconomic pressures that may limit near-term growth potential despite strong underlying engagement metrics.

ALMATY, Kazakhstan, May 12, 2025 (GLOBE NEWSWIRE) -- Joint Stock Company Kaspi.kz (“Kaspi.kz”, “we”) (Nasdaq:KSPI) which operates the Kaspi.kz and Kaspi Pay Super Apps in Kazakhstan and owns 65.41% of Hepsiburada in Türkiye, today published its unaudited consolidated IFRS financial results for the quarter ended 31 March 2025 (“1Q 2025”).

1Q 2025 Highlights

• Our results for the first quarter of the year were broadly as we expected them to be.
• 1Q 2025 Revenue up 21% year-over-year (“YoY”), net income up 16% YoY. This and all references below exclude Türkiye unless otherwise stated.
• Customer engagement strong with Monthly Transactions per Active Consumer reaching 75.
• In Payments, operational gearing once again resulted in profit growth ahead of revenue growth.
  • Payments TPV and transactions up 23% and 17% YoY, respectively.
  • Payments revenue and net income up 16% and 21% YoY, respectively.
• Marketplace Platform revenue growth continued to significantly outpace GMV growth.
  • Purchases up 36% YoY.
  • Revenue up 33% YoY versus 20% GMV growth, with revenue boosted by the growth of Kaspi Delivery, Kaspi Advertising and Classifieds.
  • Within Marketplace, e-Grocery delivered the standout performance, with GMV up 64% YoY.
  • Marketplace net income up 19% YoY.
• Fintech Platform TFV growth up 17% YoY, with robust origination trends during the first quarter.
  • Fintech revenue growth up 18% YoY on the back of healthy origination levels in 2H 2024.
  • Higher than expected interest rates required us to increase macro-provisioning, resulting in 0.6% of Cost of Risk in 1Q 2025 versus 0.5% in the same period in 2024. Underlying customer credit quality trends remain healthy and unchanged.
  • Net income growth up 8% YoY, reflecting the impact of additional macro-provisioning during the quarter.
  • Higher than expected interest rates are now expected to lead to higher deposit costs for the remainder of this year.
• Transaction to acquire 65.41% of Hepsiburada closed in January 2025. Initial $600 million cash payment made with a further $526.9 million due no later than 6 months post-closing.
  • Top-line trends at Hepsiburada were impacted by politically driven consumption boycotts. Profitability was also impacted by investment in early stage lending products. Overall consolidated net loss of KZT6 billion is minor in the context of Kaspi.kz’s bottom-line.
• $650 million 6.250% Five-Year Eurobond successfully placed.
  • Funds raised are expected to enable us to support our expansion plans in Türkiye.
  • With a highly cash generative business in Kazakhstan and investment grade credit ratings from both Fitch and Moody’s, we now have greater financial resources and flexibility as we seek to grow our business and enhance shareholder value over the medium-term.
• Fast initial execution in Türkiye with agreement to acquire Rabobank A.Ş.
  • With a banking license we would be able to launch deposit products and fund other financial services.
  • Transaction subject to regulatory approval. Expected to close in 2H 2025.
• In March new requirements to register imported smartphones were introduced in Kazakhstan. This temporarily reduced demand on our Marketplace and resulted in around 7% lower e-Commerce GMV growth during the first quarter. Weaker demand for smartphones is likely to remain a near-term theme, while increased macro-economic uncertainty in recent weeks gives us slightly less visibility around demand for some large ticket, discretionary Marketplace categories including cars and consumer electronics.
• Interest rate hikes are expected to make deposit costs higher and we believe a new 10% tax on revenue coming from investments in government securities is likely to be introduced this year.
• Taking the above into account, we expect Kaspi.kz excluding Türkiye to deliver around 15% consolidated net income growth YoY in 2025. This is a more conservative outlook than our previous guidance of around 20%, but still points to another year of decent bottom-line growth. If elevated deposit rates eventually moderate, this would be an important tailwind to our earnings growth, and we believe Hepsiburada and Türkiye is a significant medium-term opportunity for us.

Click on, or paste the following link into your web browser, to view the full announcement.
http://ml.globenewswire.com/Resource/Download/4e343f37-77ee-42fe-90dd-56a32dc59739 

For further information

David Ferguson, david.ferguson@kaspi.kz +44 7427 751 275

FAQ

What were Kaspi.kz (KSPI) key financial results for Q1 2025?

Kaspi.kz reported 21% YoY revenue growth and 16% YoY net income growth in Kazakhstan operations, with Payments TPV up 23%, Marketplace revenue up 33%, and Fintech revenue growth of 18%.

How much did Kaspi.kz pay for the Hepsiburada acquisition?

Kaspi.kz made an initial payment of $600 million in January 2025, with an additional $526.9 million due within 6 months of closing, totaling approximately $1.13 billion.

What is Kaspi.kz's revised guidance for 2025?

Kaspi.kz revised its 2025 consolidated net income growth guidance from 20% to approximately 15% YoY, excluding Türkiye operations.

What was the performance of Kaspi.kz's e-Grocery segment in Q1 2025?

The e-Grocery segment showed exceptional performance with GMV growth of 64% year-over-year.

What was the impact of higher interest rates on Kaspi.kz's Q1 2025 results?

Higher interest rates led to increased macro-provisioning, resulting in Cost of Risk rising to 0.6% (vs 0.5% in Q1 2024) and are expected to lead to higher deposit costs for the remainder of 2025.