Q4 2024 Kaspi.kz AO Earnings Call

Q&A.

He is available.

So on that note.

Over in Macau.

Thank you.

David.

Are they all on this call.

Just to give you.

As a reminder.

<unk>.

Kathy.

So part of this model N.

Incredible range of diverse.

Services.

For consumers and merchants.

And just.

Just to gain just to remind those are we don't have the total brand awareness, but it's just another one as much as we can.

The experience is a both through the network.

Place.

<unk> been tech financial services, and the consumer side, there is a huge range of the services.

Which we continuously.

So I mean, some of the things I will cover later in the presentation, but thinks like certificates for example, which we have been we've launched a.

Last year, and and you know he gave consumers can shop PE manage their finance.

Delivery through our consumer Super App, and then on the merchant side.

We've mentioned the merchant side.

It will be a strong yen.

And our pipeline for innovation for our merchants to help them grow their businesses become more efficient and really help them too.

No to onboard to the marketplace, but also get access to to the financing.

Their business, so as medicines grow and merchants are successful we're successful in extra with products of those merchants.

Either paid or or before or purchase for the consumer.

Gas because that Super App and some of the products, which we have also launched and have been scaling DCNR quite exciting things like a deposit a poor business or you know by now are buying by inventory now pay later products.

As well as around advertising and some of the product innovation, we have been a later in the presentation, but just to remind everyone. You know unique business wants to super apps with wide range of the services around daily needs of consumers and merchants.

Just on the four fewer numbers. So we have a we had a very strong Q a quarter. So you know.

All of our platforms to show the very strong growth.

The payments TPB grew 30% and then net income when the payments grew 22% with revenue, 19% marketplace have been the fastest growing business.

For us so G. M V grew 39% revenue 43, and net income 32%.

As we also told you have guided us through the year you know the later in the year of 2024, there will be a fintech business will be catching up. So you know very sort of good strong quarter for our fintech business with financing volumes growing 21% the net income growing 28%.

Consolidated we continue to be a business, which drives transactions that sort of the foundation of our business monthly transactions poor active consumer 73, which is incredible. So again. This is not just sort of opening the mobile application or what we would call maybe soft metrics. This is really hard metrics when consumers pay cuts.

You must shop.

Merchant transact and so on and so forth. So this actual transactions. So 73 transactions per month per active consumers is a very.

It's the World class the revenue grew 28% and net income grew.

Consolidated and a fourth to a 28% so strong quarter performance.

Our annual performance, you know I'm not going to spend much time on it but basically grew really well in our net income grew 25% year over year with revenue of 32% and again as I've mentioned, even though fintech grew 12%.

Over the course of the year actually with the last quarter was 28% net income ROE walk on the pretax of feedback was catching up.

And the fastest growing net income during the year.

Our marketplace, so a 41% growth in Mexico during the year.

As we continue developing our own platform. So we are becoming increasingly diversified.

So as you can see now.

Pretty much equal sort of bottom line for three of our platforms.

Roughly one third ish and I don't think technology is a 9% so another year of the growth and again an hour.

Our profits you'll have been driven by faster.

Foster growing marketplace and the payments and that is reflected now.

In distribution or <unk> of our net income so well diversified across the three platforms.

Which is which is a good sign and has been our focus for a long time.

Consumer surface penetration.

Is thereof.

Services would.

Would you have Europe.

Selected services, which are sort of transactional I would say we.

Is it can see even the highest trade. It services continued strong growth like in the payment side. For example, particularly grew three 1% and this is on the back of sort.

So to finish.

Business.

Okay.

Uh huh.

Highest penetrated at 94% part of consumers for example to use.

If you are in corporate actions or 85% of our consumers do household regulator bills.

At the same time everything from sort of marketplace.

And and is something which will be driving growth.

Due to the current penetration of e-commerce, but also in general we had more.

As we add more shopping verticals.

Any grocery for example, it was just 6% of our consumers switch, which provides a really very strong.

We believe that there will be it.

A very significant growth in grocery and then on the tech side of things products like car Finance for example, which we have been also scaling do during the year.

The type of products, which will also drive the growth.

The merchant services, you know pretty much mirror relief payments and the highest penetration and now most of our merchants are connected to our payments are 95% of them but.

Yeah, the Gainesville sort of driving because of actions around merchants and consumers.

And as with the consumer so the same is pretty much.

Marketplace E Commerce, specifically you know those are the sort of sources, which have the.

The strong growth perspective, due to the low penetration e-commerce penetration is only 11% of our merchant base.

And at the same time advertising, which we have been selling for the last couple of years.

Or do we may also have potential to be a value.

<unk> is creating for merchants and therefore the.

The penetration will be driving their growth and we've also launched a couple of merchant related products, both on the payments and the finance side and also savings.

Just to give you a sense like 10% of our merchants are using business deposit now and.

And we just launched it like Oh.

Later in 2024, so it has been a quite a remarkable <unk>.

Engagement from merchants.

And now merchants not only can.

Except the payments.

Throw us not only sell or advertise the goods they have and also connect with the delivery, but actually merchants can also save.

Save the money.

If they have excess cash and the cost of deposits is a.

They've got to pay business supposedly has a very good product which was very.

Much welcomed by the merchants.

If you look at the cohorts cohorts continuous strong growth so the payments cohort as you can see.

<unk> is a nice.

And that is both each cohort.

Growing 65% of our consumers are from the last.

Five years and again as we continue you know we already have a very strong engagement from the merchants and from the consumers whose platform is the highest engaged the most.

Consumers and merchants are using it so by adding more reasons to transact will be supporting their growth.

In our payments business.

Marketplace.

Even you know sort of higher.

Potential really in the growth and you can see each cohort also demonstrates a very sort of strong growth again, 54% of consumers are actually from the last.

Five years.

But also you know every sort of cohort.

The consumers are shopping more and this is really is a result of us either entering the new vertical and on the ecommerce side or adding more products.

Items to buy but also going into new businesses like you know we.

We constantly.

Launch something new you're right. The grocery is a good example.

<unk> tours.

As another example cars and so on and so forth. So.

Marketplace.

We will grow both as more consumers will use it more merchants will connect assortment will increase but also the new services, which we are a.

Constantly launching.

The velocity.

So has showed a very strong growth. So we know we grew about.

97% in the JV and Oh, 84% in the transactions.

Almost 10.

10 million transactions last year. So just keep in mind that this business didn't exist a couple of years ago. So we have been able to scale it.

Nice move rapidly.

With a with a good quality consumer experience and very high levels of engagement.

We have been focused on the three cities during 2024, we have been adding.

More dark stores during the year, but also expanding the capacity of existing back stores, increasing the efficiency. So the entire team from e-commerce to so the grocer. The operation has done a remarkable job by exciting consumers.

This business is highly repetitive so consumer experience is extremely important fundamental if consumers are happy and excited they continue shopping with you so HIFU Boise business.

Are they of the consumer experience is super important and in 2025, we are to them and get them through June.

Two new cities, our existing cities will continue to grow and we will continue to increase.

But at the same bye.

1025.

So news as well.

Our Evo city value preposition.

But E car so the cars business we have also.

I think nicely and again.

We are going through the entire value chain.

Sort of heading the consumers.

By the time line to own the car a household on a very good growth.

And it's it's free.

Three D mainly.

Uh huh.

And then one P. It.

It's highly targeted product basically which.

Which will be four tells us that once we get on it fast and.

Tobias will get the money with the car has been sort of tech and verified for additional value creation for both sellers don't cause the merchants of sort.

So take a bite of the car, but in general the larger Lee so creepy.

Integrated also with culture, our number one.

Crossfire Kharkov sites in the country.

And yes, we're streamlining data out of every train and they're usually they will move slightly in opposite directions. The larger is it better than this talk of it is a lumpy business because eventually.

Although those same park, which being sold with different way 62% of indigo.

Very encouraging and the spare parts at our important priority this year to next year.

If you look at the theater chain or what they are trying to do this just give you a little bit of an overview.

Consumers sell some bias of the cargos.

Help them too.

So to lease the cars up them to buy the car you know, they're going to get online car finance, which is a fully digital experience you can buy spare parts.

You can register the car with our government's purposes, you can pay tax for the Carty Guinea striving questions.

So those are sort of the main.

The main.

A part of the value David between buybacks not owning the car.

So very exciting.

Continue to digitalize the Bible of ownership.

The card and it's probably the second largest.

Item on this hospital budget so.

Yeah. So we just continue to evolve this business really added about.

Good growth in 2024.

We have launched a big trucks are in the <unk>.

And at the end of last year. So this is picking up it's just a very nice cool feature.

And our lives.

You can actually you know basically just give up.

The keeping gift card for the birthday of your friends with their coworkers.

You don't really have to think about what that what what do you want to.

So by so instead of it you can put a gift card and then.

And then the person can actually buy anything you want.

On the on the traffic e-commerce, so having a very strong product. We just launched the project really so.

But it's already you know.

Almost 50000 premises.

So yeah, sorry excited there will be a range of the innovation around the gift got experience.

During this year, but it's cool it's funnel consumers love it net promoter score is incredible so yeah, the Australian National <unk>.

It is.

The default rate.

On our e-commerce is our important.

Well I should call it.

So I think we are <unk> cost.

Company in a recovery.

E Commerce, So we grew our hour.

We delivered orders of 128% last year, and almost 100 million orders delivered due to the year.

<unk>.

The.

The important metrics of of delivery, it's basically almost for free.

Four plan.

And almost half of those would deliver within two days and very important way.

The lockers copypasta months, which were rolled out.

Over the last several years.

You know is creating this unique opportunity.

Not just only exciting consumers by delivering on time with a very high expense ratios, but also keeping the cost under control on the deliveries. So very very excited about this now we're locked with larger rebuild the network.

At the moment.

We have in excess of 8000, plus a month.

And yet and we'll just continue to sort of maintain and increasing the efficiency, but we're pretty much built the network, which.

Which is required to cover the country.

We have also launched and have been learning.

Launched in 2000.

Well, many three I think that in 2024, which we won't do another.

Much more advanced version of car T with west registers.

That's something that is very interesting.

Interesting and very useful for the merchant.

So it's particularly what you can do you can you can after the item in which consumer wants to buy.

First of all create the protocol.

Yes.

Okay.

Okay.

Consumers want to buy.

And then you go to the price you paid.

Okay.

Power.

Software is integrated with our U S network.

And then automatically will be you know could you seemed to also digital tax receipts. So.

This is very sort of high value.

The additive product the merchant operation, we provided for free.

But this gives you a sense of that.

We're a company, which is just creating that dominated services and increasing value.

<unk> B is the company, which helps merchants would develop.

So a 35% of.

And we're just now using that the Pos for sure and yeah, and it's a we have processed.

One points, what we leant over the of the payments.

For our registered and.

You know what if you think about the functionality in.

And.

We can create in the future around the simple.

Function officially record thing.

The transactions out of purchases.

Value services, which.

You know, we don't believe we can develop.

Around the sales reports or on the inventory.

And advertising.

And many other many other value added services.

But this is this is the product which has been.

Truly extraordinary engagement in one or.

More than one three merchants already using it.

And it's completed with it for merchants.

We have also.

We're also developing the further the tragic offering size U S.

It would be called during the year were launched prevent advertising. So now we have.

Two products well lockdown.

Yeah now we have.

Yeah.

We have two products, we're now almost as much right. So last year, we really have two products one product is to advertise.

You can advertise your goods products, which you have in our marketplace in the company of course, the platform and and so if you have a if you are a brand I mean, we can also advertise your rent.

And has it been enjoying a very strong adoption in now.

Our coffee at service is being used by 51000 merchants.

And then.

New significantly to both of our revenue most importantly, really helps merchants merchants and brands to reach the right customers at the right time with the right product.

Business deposits.

We've launched last year again that was something which I mentioned in the beginning of our.

Of our call.

Has been you know extra ordinary adoptions and we just launched it.

This product in the.

And the third Q and as you can see US 77000 merchants, we're already saving.

Having said that.

B business deposit and.

End of last year.

You know.

Incredible growth in terms of the amounts are 443% now is growth.

Just during the year as we were scaling it there.

The unique feature of this savings deposit, but if you take the merchant perspective, you know I'm in the trading business I had the good week or you know a.

A good month of the sales of day.

Driven by the promotional campaigns for example, so I have some extra cash and AR and I can fully online fully digital I could place plays this extra cash on the business deposit interest fees equaled the daily.

And yes, and this is very attractive for the merchants are now merchants not only can pay and F. Cross sell we process payments for for them or help to sell the goods about oil boathouse getting I'll save money and.

And then maybe a revenue of probably interest which will be paid on the on.

Which you know were just extra and you can place it on the same exact on the deposit.

With us all the impressive impressive growth.

And merchants welcomed this product launched last year.

Another part of which we have launched end of last year.

But you went through it now pay later.

So basically what that means is that are you know you.

You are in it.

To simplify your convenience store.

You have.

You have a.

Supplier from you know on.

On the <unk> side of things worked with distributors it'll be payments as you know so those suppliers come in to the convenience store and they bring some.

<unk> from FMC G brands.

So you can actually buy this inventory.

And pay a.

30 days later.

To us, but we will pay to distribute a straight away and it's a fully online product you can select the amount you can selective you know sort of the limit what you want.

When the transactions are happening.

On for example on a daily basis by the by the way and then you pretty much scan to suppliers.

QR code, which courtyard hasn't you can pay it delivery and then we pay immediately and then you pay US 30 days later. So this this product basically helps to streamline the b to B. It's another it's another protocol b to b side of things.

On top of me to be payments and yes, it's additional product, which helps the merchants to grow and improve what working capital and the and the suppliers or distributors is also helps to reduce the risk.

<unk> and yes, and we're in our risk management business or what we can do our job better than.

Than anyone else in the value chain, so another exciting products and will be scaling it during this year in 2025.

Just a couple of slides.

As you know about the gassy as and our products and trials, so consumer recognition and the brand perception again. This is something just important to keep in mind. This is our probably the most important asset that we have.

Which is the result of high quality products, which will launch.

So if you if you ask the consumer which mobile application is you're still below your mobile phone will be five five times more mentioned than the nearest Brent.

Or which payment app.

No.

He was just 20 almost 20 times the nearest Brent is gossipy gave that.

If you if you if you ask about e-commerce apps that you know he was almost three times.

There are no more than the nearest brand which travel apps.

In our sides and sort of use you know its nearest plant is three times more again the travel didn't exist several years ago. So we've built this business from scratch, what he would take alone.

It's four times needed brand, where you would.

Put your deposit funds with three times near as brand.

And then on the on the car and real estate you know if you.

Yeah consumer basically you know in terms of the cost where you would I buy a car 10 times veneers brand. So number one card vertical and that end up on the market and then what are you would buy real estate do you know.

4.4 times better than the nearest Brent.

And again in all of those.

Although as bread metrics.

Just a reminder, that while we are.

On the just the 20 million people market we are.

Innovating, we're launching the new services, we're driving the engagement and every service you know and some of them have just showed you earlier the already receiving increasing adoption. The foundation for this is actual quality of the services and the quality of our operations and we do care about the consumers and the merchants embedded.

As a result of it as a strong partner brand perception, which is an important asset.

And we just continue it continues to innovate exciting to our customers.

<unk>.

Yep.

Consumers and the merchants love us for the quarter, but services were developed.

Yeah, I would like to mention just the high.

High level.

A preview of the Pepsi Burrata transaction so.

We basically are close the transaction in.

In January end of January and we received all the regulatory approvals and.

You know the you know we paid the first part of the acquisition price and the second part.

The acquisition price will be paid.

Basically you know not me.

<unk> made some or not later than six months post closing.

Just wanted to mentioned the transaction is being funded from from our cash flow.

And the first payment in the second payment.

Our <unk> dividend for the fourth and the first half.

Speaker Change: Yeah. We're just wanted to make this clear we did mentioned this end of last year, but still just to clarify and then we'll Jeff will update later in the year second half.

About the return of the cash.

Speaker Change: The excess cash to our shareholders again, we have been very disciplined.

Speaker Change: About this historically.

Speaker Change: But every single time on this call I did mentioned that.

Speaker Change: Investing in the future investing into the growth is that they will.

Speaker Change: Important priority so.

Speaker Change: I do hope it doesn't come as a surprise, but we did mention this on every call.

Speaker Change: For so many years.

Speaker Change: Just a couple of things and the review of the.

Speaker Change: Oh over the opportunity again, you know that the population 85 million people.

Speaker Change: Turkey is really exciting.

Speaker Change: Market for.

Speaker Change: For us it brings us to 100.

Speaker Change: Plus million people the retail is.

Speaker Change: Is.

Speaker Change: It gives me much bigger than the the Kazakhstan. The compenetrate than as is still allows a very nice growth in GDP growth forecast of about four 4% and then.

Speaker Change: Clearly the market and inflation outlook is showing.

Speaker Change: You know what sort of size of the normalization.

Speaker Change: We believe that this year should be still challenging from the consumer perspective as this as this transition to so the marketable.

Speaker Change: Inflation sort of stability continues through the year, but the medium term as an exciting opportunity for us and.

Speaker Change: And perhaps you put out there is a strong foundation and platform, which.

Speaker Change: We would like to build on in the country on top of it gossipy itself.

Speaker Change: Yeah Cozby itself.

Speaker Change: Looking to launch some.

Speaker Change: Services in Turkey.

Tips and whatnot has been quite disciplined.

Speaker Change: Post.

Speaker Change: Covid and focused on the stabilizing its financials.

Speaker Change: And.

Speaker Change: Moving to.

Speaker Change: Positive cash flow. So that's that has been.

Speaker Change: Very important.

Speaker Change: Before the company and its.

Speaker Change: Its founders and the management teams have done done.

Speaker Change: Done a very.

Speaker Change: Good job and now.

Speaker Change: Over time this would be also an opportunity where we can build on.

Speaker Change: And probably switch to more of a product developments and innovations on this on this sure Foundation.

Speaker Change: And then a couple of things about the subsequent out there in terms of the size. It's about 3.5 billion G O V Oh.

Speaker Change: So G M G M D a.

Speaker Change: Is is is a reasonable size has been growing around 17%. We are presenting to you by the way those are sort of nine month numbers didn't happen without the definition of its financials you know view.

Speaker Change: I would hope you appreciate having to go out as a public company.

And therefore.

Speaker Change: Communicated to our results on its own merit and therefore, what we have is getting them actually.

Speaker Change: The nine month numbers, which are publicly available and you.

Speaker Change: You can also see it from particularly what I've done in nine months.

Speaker Change: But unit growth has been 7%.

Speaker Change: Share of <unk> 70, as a 131 P E. B a three D is two thirds of the business roughly <unk>.

Speaker Change: That could cause much 12 million, which is.

Speaker Change: Based on an extra purchases around enbridge.

Speaker Change: Kate.

Kate: This really most importantly is it just a good foundation for us to.

Kate: Two if you watch our market and basically the.

Kate: The strong start for our.

Kate: National expansion, which we always had as a target for many years.

Kate: The better.

Speaker Change: Thanks, Macau, So I will run you through the financial results for 2024 guidance outlook for 2025, so starting on the payments platform Foundation really.

Kate: The business overall.

Kate: Overall message from this slide is that payment strict growth remains strong and actually highly predictable and consistent throughout the year so versus volumes volumes up 33%.

Kate: Our year on year in the fourth quarter.

Kate: 40% for the full year.

Kate: Ongoing strong volume growth reflects the strength of the respective products.

Kate: Growth in the matching base it was up 27% year on year for 2024.

Kate: And a healthy and cost environment, both consumers and merchants can FEMA balance citizens wallets are up 22% year on year.

Kate: The volumes then translate into TPB.

Kate: Gross.

Kate: Okay.

Kate: The drivers remain very very predictable.

Kate: Lifestyle she wall.

Kate: And B debate products.

Kate: To date in 2025, well continue to.

Kate: Oh the fall.

Kate: My own take Crazy dilution that is a reflection of changes in mix <unk> and BCP, becoming more important in the <unk>.

Kate: And I would take great products.

Kate: Dilution is consistent with those of you who fell.

Kate: Solid us into 2020 that dilution is consistent with.

Long run trends.

Kate: In terms of what that means for our revenue lower take rate.

Kate: Year on year.

Kate: And also a lot of what happened over 'twenty for interest rates.

Kate: 11 months.

Kate: Moved down.

Kate: That means lower liquidity to revenue. So the result is overall payments revenue growth.

Kate: The low transaction growth, but scale of 23%.

Speaker Change: Yeah, well think teen percents before.

Kate: The full quarter.

Kate: Again for us.

Kate: I'll, let us.

Kate: Okay.

Kate: Okay.

Kate: You've seen tight cost control operational gearing.

Kate: Topline dropping through to the bottom line.

Kate: 24 that remain.

Kate: Case bottom line growth, 22% in the fourth or fifth fastest 19% revenue growth and 24% for the full year.

Kate: 'twenty three revenue growth.

Kate: For the year.

Kate: Offline growth.

Kate: <unk> and 'twenty four 'twenty.

Kate: 24% pretty much Bang in line, but around 25% guidance that we provided exactly 12 months ago.

Kate: <unk>.

Kate: So moving on to that marketplace.

Kate: Marketplace is and should remain the same.

Kate: The scrum platform within <unk>.

Kate: Yes.

Kate: What you actually saw this patch if there's an acceleration impact she says in the fourth quarter.

Kate: 48% year on year Vas is plus 42% for the full year.

Kate: Combination.

Kate: Notional offense on grocery being the reason for the acceleration.

Kate: And overall I'm very very solid.

Kate: <unk>.

Kate: In terms of all practices meaningful GMB growth.

We talked at both the H, one stage and the Q3 stage, how we expected strong <unk> trends in the fourth quarter and accelerating versus the third quarter, primarily because of the timing of Cima and that is exactly what played out in Q4.

Kate: A lot of GNP growth, that's not understand it.

Kate: Member sheets, sorry, Chi 40 M D growth of 39% Q3, <unk> growth was up 24% and for the full year A&P growth 44%.

Kate: In terms of the drivers behind that what's important now is that E. Commerce is equal in size to e-commerce.

Speaker Change: So if you think about what's been happening directionally over time is that M commerce or payments, Matt since migrated to M Commerce and comments, Matt chance that migrated to E Commerce and E. Commerce now has real scale and should continue to see very very fast growth.

Matt: I'm going take rates expansion, primarily facts reflects the benefits of the value added services advertising and deliberate Macau talked about them.

Matt: At the beginning and there are I think around 172.

Matt: GMB growth.

Matt: For 2025 times at the top of the quarterly timing of tumor events.

Matt: She is consistent.

Matt: With 2012.

Matt: Paul.

Matt: Okay.

Matt: So e-commerce is the fastest growing components are.

Matt: A small place very very strong numbers pretty much across the board Joe good.

Matt: Because E grocery all contribute taken in particular, it's been kind of flagged to Elliot a drugstore or a very very strong.

Matt: E Commerce is a main beneficiary of the value added services. They can proliferate relevant not only for E Commerce and you see that in Patria.

Matt: Moving go again, both for the fourth quarter to an all time high of 11, 6% and for the year to 11, 3%. So the combination of value added services the timing of promotional events generally Q4 contributing to that very strong take rates and yeah.

Matt: Oh and commerce.

Matt: As I said, a flag that is not that is the slower growing component.

Matt: Yes.

Matt: We talked about at the Q3 numbers and come back is very promo sensitive.

Matt: Remember that in Q3, GMB growth was down 5% year on year, you see that in the fourth quarter. It was up 21% year on year. So again, that's what we described the benefits of promotional campaigns in the fourth quarter shouldn't be up 21% for the fourth quarter and solid.

Matt: The role of 19%.

Matt: For the full year, whilst the growth may be slower again, and commerce take price hitting gold ties all time highs a reflection.

Matt: Value.

Matt: This product brings to the.

Matt: Some actions and again, even though it's slower growth and additional value proposition. If it distracts matches on boarding for e-commerce as Mexicans become more sophisticated and ready to file them remotely.

Matt: Asking travel.

Matt: The solid trends for both the fourth quarter on the phone, yes, that's a percent GNP growth in the fourth quarter back at 4% GNP growth for the full year take rate moving up to 5% for the fourth quarter approximately 40 bips.

Matt: Of the four 6% for the full year guidance at all time high take rates. There is no sort of Macau market beginning as travel travel.

Matt: His tours towards both additive to GMP and other tests.

Matt: Ticket size and not representing 9% because the mix from pretty much zero 18 months ago.

Matt: So to wrap up sort of on the market place what do you guys see.

Matt: It is sort of that strong GMB growth, 39% in the fourth quarter at 44% for the full year plus pay trainees expansion, mainly as a result of value added services here. This is Adam.

Matt: Foster.

Matt: Revenue growth of 43% in the fourth quarter up 64%.

Matt: The full year net income growth is slower and that reflects changing mixing.

Matt: One eight primarily grocery and also won't because growing shafts something we've talked about over the last 18 months, but even taking that into account.

Matt: Marketplace still deliver bottom line growth of 41% for the full year, making gates on wholesale metrics our fastest.

Matt: Growing our platform.

Matt: And then finally moving on to the Fintech platform.

Matt: Actually yeah.

Matt: Loan origination you've seen very healthy and consistent trends now.

Matt: Several years.

Matt: In the case.

Matt: Over the last 12 months, the origination of 21% in the fourth quarter rocks that 2%.

Matt: But the full year conversion two one times.

Matt: It's an indication.

Matt: How quickly people, we pay that that load and sending the message there is that and the trend is stable healthy consumer is paying normally.

Matt: On average within six months.

Matt: Number one and number two in terms of the growth drivers again, the growth drivers loan products integrated with marketplace. So that's buy now pay later, but increasingly really matching financing and car financing, which are both integrated with marketplace and car financing specifically to the cost.

Matt: And collapse out and they said that they sort of relatively expensive.

Matt: General purpose lab, which will continue to decline in share.

Matt: Yeah.

Matt: Loan portfolio, some time now growing faster than deposits some more efficient use of.

Matt: The balance sheet.

Matt: In the fourth quarter of 11 portfolio, 37% fastest deposits up 23% and for the full year.

Matt: The loan to deposit ratio moving up to 88% from 78% in 2020 strike. So again it was one of the factors that contributed positively to the acceleration.

Matt: In Tech earnings growth.

Matt: In the final, particularly in the final quarter of a year.

Matt: That is even taking into account some.

Matt: Yield dilution about yield dilution again is a reflection of mix changes our product.

Matt: Product mix changes and is consistent with the trend that you've also seen now for many years in the business and I think would be a reasonable base case.

Continues.

Matt: NPL unmatched financing grow that share.

Matt: Within the mix the deposit growth of 27% for the full year, whilst it's slower than the loan portfolio growth you still actually incredibly strong.

Matt: Growth, particularly given the context of our scale in local currency.

Matt: Deposits.

Matt: Okay.

Matt: In terms of sort of risk and credit metrics really no change.

Matt: So metrics very very consistent over the last 12 months.

Matt: A longer period of time, that's both on the origination and the collection.

Matt: Collection.

Matt: <unk> side of things and again, it's just indicative of a very stable predictable.

Matt: And costs in our consumer matching environment that you see throughout the business rather than talking about payments that were talking about trends in savings.

Matt: Okay.

Matt: Areas and so again I think this is a realistic base case to say it to carry forward.

Matt: Indication of that is actually probably in cost of risk to one times. She started two 1% for full year 'twenty four fastest 3%.

Matt: But we had 23, so it's stable now over a set of long period.

Matt: That's time NPL cover changed lower this is something we flagged at the H, one and Q3 results and that just reflects growth.

Matt: Growth in the collateralized.

Matt: Loan product, it's collateral Clos collateralized it requires.

Matt: Less provisioning.

Matt: Two just continued sort of strong and actually improving.

Matt: Election.

Matt: Stop strong MMP.

Matt: <unk> do you expect this to sort of state broadly stable or increased slightly.

Matt: In 2000.

Matt: 25.

Matt: So then finally to sort of wrap up.

Matt: In fact revenue.

Matt: Unhealthy origination even with yield dilution translates into strong healthy revenue growth of 26% in the fourth quarter of 25%.

Matt: Thus for the full year.

Speaker Change: We flagged spokes that hey, Wow, we flagged at Q3 that the combination of sort of the faster growth in loans fastest deposits number one.

Speaker Change: And interest rate cuts earlier, Ron Yeah at the beginning of 2000 and.

Speaker Change: 24 would translate into slower growth and funding costs and faster growth.

Speaker Change: In the Fintech, adding in the second half, particularly the fourth quarter of the year and again, that's exactly what you saw play out possibly in growth of 28% in the fourth quarter or 12%.

Speaker Change: For the full year.

Speaker Change: Caveat to that would be what you did hop in.

Speaker Change: Sure.

Speaker Change: That would be what you get having December is that rates once again actually moved up so certainly when we talk to the market.

Speaker Change: That wasn't something that I think any of us were expecting that could have implications to the bottom line in December.

Speaker Change: So when you look at the sort of 12% growth fastest guidance of around 15% that's about why rates moving up.

Speaker Change: In December.

Speaker Change: So what it means for 2025, sorry, yes, 2025, what we had.

Speaker Change: Sad last year is that as rates continue to move down.

Speaker Change: <unk> would be a beneficiary of that.

Speaker Change: I think you should look into 2025 now.

Speaker Change: A reasonable assumption would be that rates will stay higher.

Speaker Change: Longer I mean, this isn't actually consistent with trends in many.

Speaker Change: Parts of the world and that probably means that fintech bottom lining approach go slow up cross seller and Fintech topline growth in 2025.

Speaker Change: Yeah.

Speaker Change: Overall, though.

Speaker Change: Somebody to hold off on a strong growth.

Speaker Change: In line with guidance across all of our platforms ultimately, 25% bottom line growth for the year.

Speaker Change: Exactly in line with the around 25% guidance.

Speaker Change: Yeah.

Speaker Change: On the state 12 months.

Speaker Change: So pretty good results across the business again, particularly when you take into account the scale there.

Speaker Change: We now have.

Speaker Change: This slide really is just summarizing.

Speaker Change: What I've just talked through so I'll sort of leave that one.

Speaker Change: Moving onto the guidance for 2025, I think I would just say that number won't be offset of simplifying.

Speaker Change: Approach guidance as <unk> and PSA versus last year revenue actually this reflects investor feedback.

Speaker Change: Our preference really sort of very high level.

Speaker Change: Metrics number one and number two as the business becomes more complicated we will provide guidance just bottom line guidance just the consolidated.

Speaker Change: Business as a whole rather than at a platform level from a reporting perspective nothing changes. This is simply a change in sort of approach to guidance, but all of a sudden metrics, including net income on a platform level.

Speaker Change: We will continue.

Speaker Change: To be provided.

Speaker Change: Boston Ultimately hey, we're looking for bottom line guidance at around 20%. This excludes our attacking it is our intention for the remainder.

Speaker Change: Yeah, The guide, excluding tacky, but I think.

Time, it would be a reasonable assumption that it would be brought into that.

Speaker Change: The guidance on our mid term.

Speaker Change: So that wraps up on the guidance side of things I would reiterate two points that Macau may so number one.

Speaker Change: On the dividend track record I think at returning the excess cash to our shareholders.

Speaker Change: Long established funding at the $1 1 billion investment in Hep C barrage will come from operating cash flow generated between Q4 and across the fast huh.

Speaker Change: Next year, we'll be in a better position, we'll be able to update on them.

Speaker Change: Our cash returns.

It ends up buybacks in the second half yeah. So that was one so reiterate on the second point to reiterate Hatzius. Please keep in mind. It is an independent publicly traded company management Independent Board members and very importantly, I guess.

Speaker Change: Shareholders important developments <unk> communicated by.

Then it wouldn't be appropriate for us to sort of front run.

Speaker Change: Communications So please keep that in mind.

Speaker Change: But on that note lets open the call up to Q&A. Please.

Speaker Change: Thank you David we will now begin the question and answer session. If you would like to ask a question and you have joined US on the phone lines. Please press star followed by one when your telephone keypad.

Speaker Change: And if you have joined us on Zama. Please he is the right time.

James: You have joined us by James.

Speaker Change: Yeah.

Speaker Change: Okay, Sabriya, let's take a breather, let's take Barron from Wolfe question fast pace.

Karen: Karen Your line is now open.

Speaker Change: Yeah.

Speaker Change: Thanks, guys nice job exiting the year and this growth format can I just ask about guidance for a moment.

Speaker Change: When you look at the 20% I guess Theres puts and takes both on the impact from a net income standpoint, your interest income standpoint, but more and more important that the drivers.

Speaker Change: Really the drivers that you are looking at exiting the year are materially higher than what you're implying in your underlying growth assumptions from the <unk> standpoint, just looking at marketplace <unk> expected I think you said, 25% to 30%.

Speaker Change: We're eating payments in the 15% to 20% versus the exit rates can you just touch on maybe what's conservatism built in bursaries.

Speaker Change: Any implications or factors that are going to drive some sort of a deceleration in those manners on those kpis or is it just size of the business.

Speaker Change: So thanks for your question Darrin I'll make two points.

Speaker Change: And then making the caller wants to add something so the first southwest bank is.

Speaker Change: This guidance conservative guidance to grasp it.

Speaker Change: Just take it on face value that would be sort of a Ah my my advice I wouldn't sort of over.

Speaker Change: Try it out.

Speaker Change: And so that's that's one simple points.

Speaker Change: Second point more specific to your question.

Speaker Change: I think that.

Speaker Change: All the trends that I've just described that.

Speaker Change: In 2024 pretty much you can assume carry forward into 2025. So for example on payments, we've talked about sort of a price dilution long term trends.

Speaker Change: AQR <unk> <unk> in the mix.

Speaker Change: On Fintech again, we talked about our yield dilution.

Speaker Change: As I sat in products grow in.

Speaker Change: The mix these things instead of what explains the difference between topline and bottom line and then also again, particularly I think on the Fintech.

The scenario that situates Humira in today's defense of where the world was three months ago.

Speaker Change: Three months ago, when we had this goal of phones, so that when we have this.

Speaker Change: We were talking about rates essentially continuing to move it down a nice tailwind to fantastic bottom line actually not only are they not moving.

Speaker Change: At the end of last year, and we'll see what comes out of the next couple of months.

Speaker Change: So that's the quick change in the outlook whatever roll, 20% scribes fastest 25 last year.

Speaker Change: A reflection of the scale of that.

Isn't it.

Speaker Change: Right.

Speaker Change: Okay. That's helpful and then Jim It sounds like it's really just the law of the larger base more than anything underlying in the business changing much.

Speaker Change: And then my.

Speaker Change: My follow up would just be on a quick quick follow up on Turkey.

Turkey and happens Corrado.

Speaker Change: And maybe just remind us of the timeline in your your hopes.

Speaker Change: What are you hoping to see in terms of integration and opportunities there and just further internationalization more broadly by the end of this year and maybe into 2006 broader question, but I know that was it was great to see the closing of that in just a couple of months ago.

Speaker Change: Macau to add anything Colin.

Speaker Change: So tacky.

Speaker Change: Well I mean.

Speaker Change: I mean, just to kind of repeat myself. It's a you know it's a big market, we do see a lot of our call.

Speaker Change: Opportunities in the mobile services.

Gal: And Gal and the merchants the consumer side.

Speaker Change: So, yes, I mean.

Speaker Change: You know where but it's it's a it's a good so they are a strong foundation for us.

Speaker Change: The country economic policies are providing its positive effect of normalizing the you know the.

Speaker Change: The inflation and the macro outlook.

Speaker Change: With you know as it happens with these type of changes.

Speaker Change: You know that the consumer sentiment might be a bit challenging during the year.

Speaker Change: But other than that you know we're a yeah. We're excited about the opportunity and then perhaps a broader assortment.

Speaker Change: And then consumer sort of a 100000 merchants physical platform in the.

Speaker Change: And and we are also considering launching.

Speaker Change: Launching <unk>.

Speaker Change: Considering launching and supporting services as cockpit itself.

Speaker Change: So yeah. So it's you know in general its really exciting market very similar to to Kazakhstan on the from the consumer dynamics perspective, but.

Speaker Change: But again, you know Devin said that and I said that all types of what out there as a public company. So they.

Speaker Change: They will focus on their on their own numbers and yeah. We're just we'll be focused on the on the quality of the product innovations and things like that which are <unk>.

Speaker Change: Lastly, as you know.

Speaker Change: So a very strong track record of executing.

Speaker Change: And keep in mind, we're right.

Speaker Change: Three four weeks right.

Speaker Change: Now we just closed his excellent January 29, and then there is the one thing also to keep in mind that I think everybody who has been with us for many years.

Speaker Change: We always prefer the resolve sop for ourselves and the and I think that.

Speaker Change: That would be the same approach you know so it's not like.

Speaker Change: I think I think we just want to get right.

Speaker Change: Work on the products works on the services work on a consumer on.

Speaker Change: On the consumer end.

Merchant services quality, but also innovations and launching some services and again he pudding costly launching good services itself on a standalone basis.

Speaker Change: Got it alright, guys. Thanks very much.

James Friedman: Thank you. Your next question comes from James Friedman.

Speaker Change: Please go ahead.

Speaker Change: Hi.

Speaker Change: Good afternoon, good morning.

Speaker Change: Yeah.

Speaker Change: So.

Speaker Change: I just you had some observations about the macro environment and kind of extend if you could just reiterate what it is that you're seeing and anticipating I know theres been a lot of movement in interest rates, but also on the inflation front, sometimes that could be a good guy bad Guy anyway <unk>.

Speaker Change: <unk> that youre sharing in Kazakhstan macro would be helpful.

Speaker Change: Alright, James I'll, just state macro very quickly so I think a simple message to you.

Speaker Change: Is that we see for the most part.

Speaker Change: It was very sort of stable predictable environment with consumer trends consumer unmatched in trends.

Speaker Change: Consistent.

Speaker Change: Really with the last sort of 18 months, if not longer on a gas alternately. The the evidence of that is you can look at the guidance payments instead of big business.

Speaker Change: And in the context of the country growth to scale for the Hema guiding for 15% to 20%. So that's indicative.

Speaker Change: Sort of volume numbers with showcase for both marketplace and in patent cases that is indicative of at least in part is not just not credible in PA.

Speaker Change: Stable macro in the.

Speaker Change: Got it that's that's.

Speaker Change: The main factor that I'd say, that's the one caveat I wouldn't overplay it it's really only relevant.

Speaker Change: For our Fintech business, and it's probably just sort of timing.

Speaker Change: Shoot.

Speaker Change: The competition is.

Speaker Change: Currency weakness currency weakness around the slate.

Speaker Change: A higher inflation.

Speaker Change: Placing translates into interest rates moving.

Speaker Change: That's the only real change I can point to.

Speaker Change: The Alaska.

A couple of months well, let's not play that I guess not.

Speaker Change: We had record level trends that inflation is.

Speaker Change: Moving down.

Speaker Change: More slowly that write something down more slowly and the good news is that links and funding cost for all businesses all high.

Speaker Change: So whilst them.

Speaker Change: <unk> and take longer to come down direction still at reasonable is Mexico. So they will come back and that will.

Speaker Change: To be a nice Idaho wind.

Speaker Change: Based on maybe not in 2025.

Speaker Change: Quick fix on so, let's just see how things evolve over the next couple of months.

Speaker Change: Yeah, and David just said.

Speaker Change: There is a sort of temporary.

Speaker Change: Or you know end of the year.

Speaker Change: The exchange.

Speaker Change: Change rates at present.

Speaker Change: I think it's also was very encouraging and the two.

Speaker Change: To see in the Testament to the National Bank.

Speaker Change: And the government that they.

Speaker Change: Patient <unk> sort of walk work through this process.

Speaker Change: It was it was basically the driven by the by the market.

Speaker Change: And it was it was a project to see it to three market and exchange rate <unk> ability to actually.

Speaker Change: Eventually it improve so the exchange rate now as.

Rob: Hello, Rob.

Speaker Change: 500.

Speaker Change: About 5% less than it was in Bulgaria. So that's.

Speaker Change: What sort of well understood, but also it goes.

Speaker Change: Great and my market sort of driving up in Darwin.

Speaker Change: Testament to the patients of the initial.

Speaker Change: The initial bank.

Speaker Change: Doing good.

Speaker Change: Managing this poorly.

Speaker Change: Yeah.

Speaker Change: Mhm.

Speaker Change: And then on my question about Hep C, but we're out of it.

David: Yes, David go ahead, maybe.

Speaker Change: Just one thing to also keep in mind that <unk> is not immune also from a from.

Speaker Change: From the from.

The regional Geophysical trend. So that's also the perception of what it says is that and that has its own.

Speaker Change: The positive.

Speaker Change: Positive negative remember what it is you know clearly as planned its own technical in the.

Speaker Change: In the in the dynamics.

Speaker Change: Please keep in mind this volume, but no there's not.

Speaker Change: Yes.

Speaker Change: [laughter].

Speaker Change: And then in terms of Hep C brought it.

Speaker Change: Okay.

Speaker Change: And one question, we get is a bad margin characteristics of their business versus your business is is that a conversation or.

Speaker Change: Assignment.

Speaker Change: That.

Speaker Change: SP will be engaged with.

Speaker Change: Or is that.

Speaker Change: Under their auspices, we're just trying to figure out who.

Speaker Change: Yep.

Speaker Change: Who who whose authoring the margin.

Speaker Change: Our messaging.

Speaker Change: And James and I understand the question.

Speaker Change: Let's now open it complicates it.

Speaker Change: Hep C. Todd is management's report into Hep C bear out as a loss.

Speaker Change: Cost controls Hep C or <unk>.

Speaker Change: So what any company it's the conversation.

Speaker Change: Senior management and the board on all access to financial.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Expansion Bryan.

Speaker Change: It's again the same comments.

Speaker Change: Extra audit reports quarterly it provides quite detailed on that strategy.

Speaker Change: You can evolve.

Speaker Change: And it needs to be communicated by then but I think it would be fair on each of the shareholders.

Speaker Change: But they have to listen to the cashcall to find out what's going on at the company that would not be appropriate.

Speaker Change: <unk> communicated.

Speaker Change: Yeah.

Speaker Change: Okay got it I'll jump back in queue. Thank you.

James Friedman: Thank you James.

Speaker Change: Have.

You call them again.

Speaker Change: Greg can you go ahead.

Speaker Change: Hey, good morning, good afternoon.

And first just a question on.

Speaker Change: Marketplace segment and in the letter Mccalley, you talked about that you need to be the most important growth engine.

Speaker Change: This year got it.

Speaker Change: Over a number of initiatives that are still pretty early.

Speaker Change: As we think about this year, maybe next year.

Speaker Change: R R.

Speaker Change: And as <unk> expect.

Speaker Change: To be the major focus on their new initiatives that are kind of coming down the pike, how should we think about that.

Speaker Change: And.

Speaker Change: I know it's early.

Speaker Change: Hep C in Turkey, and Panama things talked about but yeah.

Speaker Change: Is there a plan intention due to kind of a lot of products like <unk>.

Speaker Change: Grocery and some of the newer ones that are working really well.

Speaker Change: Out in Turkey.

Speaker Change: Yeah.

Speaker Change: Good to hear from you and thanks for questions in terms of the <unk>.

Speaker Change: In terms of the marketplace the way to think of.

Speaker Change: About it.

Speaker Change: It is the way that.

Speaker Change: You know historically.

Speaker Change: And.

Speaker Change: We also sort of explain this trend before.

Speaker Change: Both consumers and merchants.

Speaker Change: Initially come to our payments business then they move it through to the to the airport and then eventual destination is E Commerce and this is both true for merchants and consumers because ecommerce is actually much more advanced.

Speaker Change: Food digital experience fully online full.

Speaker Change: Fully mobile like 100% that novel profile.

Speaker Change: Part of it the bottom has actually met the delivery and the real.

Speaker Change: And the individuals.

Speaker Change: So from that perspective.

Speaker Change: The nature of the marketplace growth and then also the fact that the services of the marketplace and especially commerce, although at least penetrated so those are the.

Speaker Change: With regard to the.

Speaker Change: The factors, which will support the growth of the marketplace.

Speaker Change: Again, if you look at the previous years.

Speaker Change: Or payments was growing much faster than I would of course was growing fast.

Speaker Change: And any color. So this is susan.

Speaker Change: I would say that the grocery.

Speaker Change: So being the least penetrated businesses.

Speaker Change: They don't have the biggest potential.

Speaker Change: But we are in the in the <unk>.

Speaker Change: <unk> wishes.

Speaker Change: Operations of our grocery.

Speaker Change: The operations of our e-commerce, which means the window for velocity and also the marketing Guy.

Speaker Change: And the intention would exceed as well have been doing this incredible job book generates highly satisfied consumers, which means they are staying with us and they're hungry repetitive.

And therefore the only.

Speaker Change: What are the major limitation.

Speaker Change: So the growth of the <unk>.

Speaker Change: Most of it is actual loss.

Speaker Change: Created the entering diseases.

Speaker Change: Building the dark horse.

Speaker Change: And on and run their starting to run the operations and basically providing the supply.

Speaker Change: Stores in terms of assortment, which was so.

Speaker Change: This is this is like that is there.

Speaker Change: We're really encouraged and excited to see the amount of debt. We're just building the infrastructure. Good news is that we are sorry, and driven that would've been quite efficient but.

Speaker Change: But it is basically so it grows to grow together with especially with the dark stores are also entering the New York.

Speaker Change: Cities, but also a growing.

Speaker Change: But also growing the.

Speaker Change: Any creative.

Speaker Change: Efficiency or existing operations, which is never think exercise.

Speaker Change: Our management team and then we're just looking at some specific verticals as well you know.

Speaker Change: The way.

Speaker Change: So look at this is that you know we historically from electronics.

Speaker Change: With elastic of transactions, if you look at the size of our transaction.

Speaker Change: There are different from any other ecommerce players usually would be slots from loyalty transactions and they hope to get up and make business profitable in our case, we thought it from high ticket transaction, which was electronic and now we're moving downstream and the size of that is actually is actually pleasing and we are driving the frequency, but there is.

Speaker Change: This is really exciting because it's been driving frequency mainstream driving more business and you already have the network, which can deliver those items. So that you can sustain your profitability, while growing e-commerce, because other guys usually reporting data.

Speaker Change: From the opposite direction, so were going for a new category, we started with electronics.

Speaker Change: Some of the categories, which we are now becoming increasingly strong would be you know home and got them would be a fashion and some other categories, but they're buildup on existing network of the delivery existing consumers payment options and so on and so forth.

Speaker Change: So that's that's that's why the marketplace will grow faster for for so many reasons.

Speaker Change: In terms of the Hep C bought out perhaps the growth I would say that for.

Speaker Change: For us it's it's weird it's it's.

Speaker Change: Yeah, It's just the company which has.

Speaker Change: It has been built on a very solid financial foundation.

Speaker Change: Wood, which is an important point and 12 million because she was around 100000 merchants who is also a very good foundation, but again you know.

Speaker Change: I don't know how to how to say we want.

Speaker Change: Just to take our time basically and just make sure that.

Speaker Change: The yeah. The services, which are considered can be can be provided on the market in innovation around those services, but you also should keep in mind that the.

Speaker Change: You know as I mentioned before casting.

Ken and probably we'll launch services on a standalone basis.

Speaker Change: As Dusty right there's a.

Speaker Change: As a company and in Turkey, as well so all of those things would kind of be considering.

Speaker Change: Okay, just a quick follow up on that.

Speaker Change: Just explain the rationale.

Speaker Change: Jason Martin Cass be sent home versus whatever the problem there.

Speaker Change: Or what.

Speaker Change: What would be an antique automobiles kashi bonds.

Speaker Change: I mean, where we are looking for we're looking for the ability to.

Speaker Change: To launch the services it doesn't matter who is launching it right. So if there is ability there is knowledge and technology towards the services you know we'll be taking those.

Speaker Change: Those opportunities there's nothing.

Speaker Change: You know sort of short term and in this but again our target is to launch the services and provide services to the merchants and consumers that's our goal.

Speaker Change: And where the services are born or where the service is being developed it really depends where the capabilities are and where the knowledge is in technology and experience.

Speaker Change: Alright, understood and one quick follow up on the macro.

Speaker Change: Thank you you probably don't but at.

Speaker Change: At least I think so just want to understand you talked about the investor reception on July trends.

Speaker Change: Hoffman kind of comes to an end.

Speaker Change: The reality in terms of.

Speaker Change: Catholics now consumer exposure.

Speaker Change: Not a conflict.

Speaker Change: Shop near the mine.

Speaker Change: Thanks.

Speaker Change: Either the domain of the of the.

Speaker Change: You mean, if comfort is over what impact that would have on a telephone consumer does the question yeah.

Speaker Change: Well I think I think our I think in general I mean, I would say that are you know it will.

Speaker Change: I mean of course, it will have a positive impact on various fronts Tonight that I still would could.

Speaker Change: In front of everything that you know I think that.

Speaker Change: Piece and then in four people in the region I think all of us have.

Speaker Change: Again, I mean, it's just I.

Speaker Change: I mean piece is good for everyone and I'm and I'm highly confident that the that the you know the the geopolitical stability in the region will have a very positive feedback on pretty much every country is.

Speaker Change: In the region and consumers I don't know David anything.

Speaker Change: But you can add to this but I do think that.

Speaker Change: It's it will have a multiplier effect and it will have it will be positive for everyone. I mean, most important people will stop buying that's as far as I'm concerned, but also for the countries and economies I think.

Speaker Change: Should be it should be positive for the whole region.

Speaker Change: Yeah, I mean, I can't really add much on that I mean, I just would add I suppose.

Speaker Change: Keep in mind that from a political perspective.

Speaker Change: <unk> navigated very challenging Ah shall I shan't afterward.

Speaker Change: Oh.

Speaker Change: Over the last couple.

Speaker Change: A couple of years. So that's one point I would make but I think beyond the California, the human impact.

Speaker Change: Hum.

Speaker Change: It would be.

Speaker Change: Manifest itself just brought up.

Speaker Change: L P geopolitical derisking across the entire region, so from a risk perspective, Chris normalize agent perspective.

Speaker Change: It clearly would be would be helpful.

Understood.

Speaker Change: Thanks.

Speaker Change: Thank you.

Speaker Change: We have next question from John Mcnabb.

Speaker Change: <unk> asset management. Please go ahead.

John Mcnabb: Hi, Mariano Hi, David.

John Mcnabb: Congressional congratulations on the results and shuts it quick questions on Libra.

John Mcnabb: When we look at Hep C. Brian the one thing that's in there.

John Mcnabb: They will be.

John Mcnabb: First in Turkish market too.

Credits in our E Commerce site.

John Mcnabb: First one is to launch the NPL product give them apply for deposit license what.

Speaker Change: What do you think.

Speaker Change: In your analysis of the company will do you think you can do very differently to Hep C. Brian as you know existing mass recruitment in making sure that the credit franchise.

Speaker Change: <unk> sent to me from growth and the second question.

Speaker Change: Do you plan to kind of what do you plan to keep any of the existing senior executives at <unk> will you be bringing a lot more casspi kind of has.

Speaker Change: Half the people to run the business.

Speaker Change: And you become more familiar with it.

Speaker Change: Yeah.

Speaker Change: Got it is there anything you can add on the space.

Yeah sure I think I did I think I did actually.

Speaker Change: You know respond to this are also on the on the on the on the previous call. So our our goal is really to build the.

Speaker Change: You have to build in our capabilities on the ground. There is no intention whatsoever, we're not we're not the usual sort of.

Speaker Change: Yeah.

Speaker Change: Strategic guys, which just come in and suddenly start pitching everyone was the best way to do business I think I've said what are the on a standalone basis has has a very strong management team that delivered.

You know there are profitable.

Speaker Change: So the growth and have worked through a very challenging time sensitive.

Speaker Change: Together with previous.

Speaker Change: Yes.

Speaker Change: Uh Huh, followed this and shareholders have done.

Speaker Change: A job remarkable job, which is a strong foundation for us to take forward.

Speaker Change: So we're not you know wealth in the business, we're running the business.

Speaker Change: Creating a bid.

Speaker Change: Incredible products.

Speaker Change: <unk>.

Speaker Change: Which are innovative and improve people's lives.

Speaker Change: The mobile development and technology, driven this business and there is a wealth of knowledge, which.

Speaker Change: Sure between the teams.

Speaker Change: But again, if there are some products, which can be Uh huh.

Speaker Change: Launch will be focus of the launch of those products.

Speaker Change: Well, we're a product company so we're not.

Speaker Change: The cost is not the political animal corporate structure, we're extremely lean.

Speaker Change: And from that perspective, no there's no intention whatsoever.

Speaker Change: Stockpiling people and it's also expensive.

Speaker Change: [laughter] I just didn't think no. There is no such intense and I think a little bit where we're very happy and then working forward with so we're looking forward to work together with us.

Speaker Change: Without that seemed it I've done a good job last several years.

In terms of the and then there was a question about the question about the credit well.

Speaker Change: We will see if I have to credit.

Speaker Change: Credit is as everyone.

Speaker Change: He is a good product.

Speaker Change: Youll have to Port Arthur also has developed a at the same time that our market is in Turkey is very wise from that perspective.

Speaker Change: And then I'll also financial institutions and the banks right products.

Speaker Change: Yeah. So we will see I mean, we're always I mean.

Speaker Change: Should keep in mind that.

Speaker Change: Even though.

Speaker Change: We are innovative.

Speaker Change: We innovate.

Speaker Change: Are the things, which are trying and needed for consumers and merchants. So if we see innovation is needed on the credit side table will look into it.

Speaker Change: Again, we're forward consumer would follow marks that would make their lives better.

Speaker Change: And it's an exciting opportunity there are a number of things that can be done on the digital services global services side for both merchants and consumers.

Speaker Change: And it's a big market.

Speaker Change: Yeah. So it would just.

Speaker Change: We will put our heads down work.

Speaker Change: Yes.

Speaker Change: Hopefully the results will be quote itself, we don't want to we don't want to 11 O olive to say like what can talk what was the what I expressed before as you know.

Speaker Change: Yeah look at Ian suppressed familiar and Ah things.

Speaker Change: I think what you should look at is how we support the Doncaster Donald.

Speaker Change:

Speaker Change: Five years.

Speaker Change: <unk> provides.

Speaker Change: I placed on execution.

Speaker Change: Execution not promises everything you said so the first one about presentation.

Speaker Change: There's real initiatives, many of which did not had up 18 months ago.

Speaker Change: That are now being drilled outset strong momentum behind them.

Speaker Change: Should we expect more of the same.

Speaker Change: Going forward.

Speaker Change: And what market you're talking about.

Speaker Change: Yeah.

Speaker Change: Yes, and then just the one.

Speaker Change: So ethanol Pepsi Cola E Commerce companies. So that's the.

Speaker Change: The the core expertise in the core knowledge, which is.

Speaker Change: Foundation and the platform so.

Speaker Change: What's really been a lot of it is.

Speaker Change: So very very strong.

Speaker Change: <unk>.

Speaker Change: The e-commerce companies.

Speaker Change: Thank you.

Speaker Change: We now have a well Kennedy with autonomous you May proceed.

Speaker Change: A few clarifications from me. Please the first one is a higher level question on your guidance.

Speaker Change: At the center and profit Okay. Guy. This is just a slight slowdown from from Whiting delivered last year.

Speaker Change: If you cut that the volume dynamics.

Speaker Change: Suggest more of a slowdown and.

Speaker Change: So my question is.

Speaker Change: Where do you see margins improving.

Speaker Change: And what is driving that.

Speaker Change: And have you indicated in tech margins, possibly coming out and do you see yourself that would leave us meet the marketplace.

Speaker Change: Any help there would be useful here. The second one is on the currency, which has been what Ty could you you mentioned a test.

Speaker Change: Bounce back up.

Brent: Thanks Brent.

Brent: And yes as the dollar falls in 2019 I guess the question is do you have any hedges the balance sheet of <unk>, we should be a S. R.

Brent: We can translate the FX moves to your P&L one when you think about it in dollar terms.

Brent: And my last question is on.

Brent: On Hep C.

Brent: And he is assuming the dividends in the second half dependent on a buyout of desk moraine east.

Brent: That's it from me thank you.

Brent: But with you.

Brent: Yeah, all right, so I'll do them nothing.

Brent: And Oh.

Brent: For that Oh.

Brent: So buyout.

Brent: Minorities and catch up quickly.

Brent: Hum.

Brent: This point in time.

Brent: Oh, okay.

Brent: We just closed the initial set of six 5%.

Brent: Thank.

Brent: We've made an initial payment Oh, we have ever made it.

Brent: To make over the next.

Brent: Six months, which make us optimistic at one one.

Brent: Failure.

Brent: That's our focus.

Brent: There is no proposal on the table for.

Brent: Anything counts.

Brent: So that's important to be.

Brent: All of that.

Brent: And again by that point.

Brent: There's different things that can happen across the business.

Brent: You've highlighted wall, there are multiple or that sort of 15 parts.

Brent: In the second half of the year will be in a better position to take share counts everything can make a call.

Brent: That particular point.

Brent: And in time again off a record I think shows if we have excess cash we are attaching to shareholders.

Quite clear here, we couldn't get dividends and all.

Brent: Buybacks based on the second half.

Brent: Yeah, It's a minority it's really not a proposal on the table.

Right.

Brent: And last question question on hedging no material change in the basic necessities.

Brent: Hum.

Brent: That largely.

Brent: There is a aggregate revenue in aggregate cost business for that.

Brent: Most of the stuff.

Speaker Change: Our Yo Yo Yo effect first can you guys give us a test that Darren question. So again, I think I can only sort of reiterate the volume trends will be very very strongly in the business. This year.

Brent: Think about off scale.

Brent: Marketplace growth of up to 30% year on year.

Brent: The payments growth of up to 20%.

Growth year on year is a decent volume numbers for our business.

Brent: That's north of $2 billion.

Brent: And net income.

Brent: The businesses.

Brent: The growth is still forecast to be strong.

Brent: Simply you just have to look at the complete.

Brent: Picture So you choose.

Brent: 2024 was 25% growth.

Brent: It's probably an unrealistic assumption that 2025 or 25% growth.

Brent: As well.

Brent: 20% does that seem like I said, a dramatic change in outlook. It just seems like a natural set of scale effects within the business to make.

Brent: This is Kazakhstan of course going forward in the medium term that can be contributions to income from from all the parts.

Brent: The world.

Brent: Very helpful. Thank you.

Brent: Thank you.

Brent: We now have.

Brent: <unk> with J P. Morgan. Please go ahead.

Brent: Thanks, Good morning, Congrats on the quarter most of my questions have been asked but I did.

Brent: I have a follow up.

You mentioned.

Brent: It sounds like it.

Brent: Uhm.

Brent: And that should impact or influence over.

Brent: FC will primarily come through board meetings. A question is has the new reconstituted board met yet and how frequently.

Speaker Change: Did a neat.

Okay.

Speaker Change: Let's say that account.

Speaker Change: Good to hear from you.

Speaker Change: And then it's a it's a.

Speaker Change: Yeah, I mean, it's it's proper board dynamics really more for a company, which is a listed plaza. So.

Speaker Change: We have a we have a very good day and all the good strong war with.

Speaker Change: With the euro.

Speaker Change: Three independent directors.

Speaker Change: And it's all there.

Speaker Change: It's actually you know have been yes, they've been working on are in accordance with all the governance requirements, which are applicable for.

Speaker Change: For a for a NASDAQ listed company in the states. So we have not we haven't had the.

Speaker Change: Yeah, the formal board meetings.

Speaker Change: Okay.

Speaker Change: I think no requirement or the standard is just like one meaningful quarter, but some companies will meet more frequently I guess my question is.

Speaker Change: Is the plan to meet more frequently or just the standard is kind of the standards.

Speaker Change: Well I think I think subordinates board will do whatever they consider appropriate for unemployment. So there is no I think we shouldn't be putting any limitations, whether it's quarterly or monthly I think the meetings will take place either like like in coffee you know the place you've made meetings take place when when important decisions.

Speaker Change: <unk> needs to be.

Speaker Change: Yeah, and the board needs to review or so different commentaries that have to do their job. So I think it's yeah. It's it just needs to be guided by the by the requirements over the company and the governance policies, which the company seven and the governors proposals are actually quite good details and soup in a substantial and you know it.

Speaker Change: Similar between Caspian the hips.

Speaker Change: Got it and then just to just to make sure I understand this correctly.

Speaker Change: Your influence you being Cassidy as influential on operation strategy or whatever as it relates to Hep C well.

Speaker Change: Will happen through board meetings as opposed to somebody just calling up and saying Hey, you know we want you to do there. So look at this or several of them.

Speaker Change: To that degree.

Speaker Change: Am I interpreting that correctly.

Speaker Change: [laughter] I've just siphon February going with this question is it does what it does.

Speaker Change: So I guess you know typically when I think of an acquisition and this is different because you guys acquired the entire company.

Speaker Change: You can come in and really had a super hands on approach to life changes and I guess I'm trying to understand the distinction here and making sure that like I fully appreciate that it's not it's not going to be super hands on but it's not a passive investment either so I'm just trying to understand like where it falls in that.

Speaker Change: Continue.

Speaker Change: You follow me Yeah of course, I mean, I think in general, it's a where we in general we're just excited too.

Speaker Change: We're excited to have launched the services in a in Turkey with without experience and.

Speaker Change: Our execution skills, so and we are.

Speaker Change: Shareholders in the company and we reinvest that into the company on Board. The company you know because we believe that ecommerce has high potential. So wherever we can add value you know and pool, it's not we're not private equity funds and we're not the asset management company, we are actually a strategic investor right. So yeah.

Speaker Change: Yeah that makes sense.

Speaker Change: We will go.

Speaker Change: Those are things, which are our yeah, we're trying to applicable Florida, they're strategic.

Speaker Change: So you can rest of the company.

Speaker Change: Yeah.

Speaker Change: We're not going to be the bureau of course working globally.

Speaker Change: On the and on the board level you're right.

Speaker Change: Okay. It makes sense I appreciate it. Thank you congrats on the quarter look forward to watching a missy ball.

Speaker Change: Sure.

Speaker Change: Thank you.

Speaker Change: We have come to me with Wood <unk> company on the line.

Speaker Change: Hi, gentlemen, thanks for taking my questions. So my first question is.

Speaker Change: The NPL for merchants is that a market place product or is that a fintech products. So I just wanted to clarify that.

Speaker Change: And secondly on the government comments that merchants should advertise both cash M. D. M. P L finance price.

Speaker Change: Their products.

Speaker Change: I was wondering what's your take on that is and how do you think that would affect yard M. Commerce as much or is that more than noise that we should maybe overlook.

Speaker Change: And thirdly on Ukraine, we know that you have a payments company there.

Speaker Change: Joe would you focus on going back there.

Speaker Change: If there's a piece meal.

Speaker Change: That's the first question. Thank you very much.

Speaker Change: Sure.

Speaker Change: Yeah I can take all three questions are there do you want to do it.

Speaker Change: Because if you did and maybe broaden out anything else on the regulatory side that needs. You think is relevant to the race.

Speaker Change: Yeah, Okay in terms of the you know Ukraine and other you know.

Speaker Change: Around the region I would say listen as you know, let's just hope that are.

Speaker Change: There will be a piece and then I think we will revisit our strategist ICANN, but at the same time I get.

Speaker Change: Well you can almost imagine you guys asking goes when he will go through Ukraine, and then when we will go through your granular Alaska why did we go too crazy.

Speaker Change: Fair enough.

Speaker Change: [laughter].

Speaker Change: And then you will ask US you know what's your five year detailed plan strategy and on things like that so anyway, just joking, but I think let's just keep in mind I think they're just hope that piece will be they're mutually beneficial for everyone.

Speaker Change: We will explore.

Speaker Change: Opportunities down the line in terms of the in terms of the bye bye and that they're now pay later, it's both the Fintech underpayments brought up.

Speaker Change: Sexual works on our books, because we're processing the payment and we're also taking the credit risk for 30 days, which is is very low risk.

Speaker Change: So it basically works on both platforms. It works on the credit risk side of course is a credit it's a feedback side on the payment side that still processing the payments because it's built on the is built also on top of the B to B payments, but this is just another.

Speaker Change: Innovation on the top of the to be in a when we launched the beta prepayments I detailed you guys. Several years ago. This is we want to get that scale, we want to run.

Speaker Change: One transaction was running and once distributors some convenience stores for transactions between them at some point, we'll stop innovating on top of those transactions like where they didn't have any other vertical. So that's what's happening now so it's <unk> and other b to B product, which we've launched and again the credit risk side is on the Fintech and the credit risk in the interim.

Speaker Change: Right I mean.

Speaker Change: Its impact and then the payment processing side is on the payment side.

Speaker Change: So that's on the that's on buy now pay later.

Speaker Change: Product in terms of the in terms of regulation.

Speaker Change:

Speaker Change: Well I mean in general I would say there was there was general discussion, there's really nothing sort of I don't know if nothing really specific to report.

Speaker Change: Uh huh.

Speaker Change: Yeah. So I mean in general there is a discussion also about the V. T. Techs are sort of in this discussion is going.

Speaker Change: Oh, you know with a wide audience and the businesses and the retailers.

Speaker Change: So that is yes, there is discussion ongoing on the V. D. For example, there is a.

Speaker Change: A discussion going on on the.

Speaker Change: On the payment network.

Speaker Change: As well the national payment network. So you know we are involved in all those discussions.

Speaker Change: I don't know anything else, David I'm missing.

Speaker Change: Now.

Speaker Change: There's nothing material set of orders fulfilled.

Speaker Change: You've followed us for several years kind of you know, there's always different aspects of regulation, a disgusted different stakeholders contribute difference.

Speaker Change: Our opinions with one stakeholder Inc.

Speaker Change: What you've seen over the last five years has never really been a regulatory decision.

Speaker Change: Hi.

Speaker Change: A dramatic impact on the business model or investment case.

Speaker Change: We've generally been well positioned as the regulatory landscape has changed and there will be changes in the future.

Speaker Change: And we'll look to make sure we're well positioned for those those those changes, but theres nothing imminent that we need to flag.

Speaker Change: You ought to other investors.

Speaker Change: Okay.

Speaker Change: Thank you Bob.

Speaker Change: Okay.

Speaker Change: Thank you.

David: I would now like to hand, it back to David for some final comments yeah.

David: Yeah. Thanks Creek, so I've gone on for over an hour and a half conscious they're awesome questions remaining in the queue, but we do need.

To wrap things up slip to another meeting so.

David: Thank you for your time today happy to follow up offline, if we didn't get to your policies and happy to follow up offline. If we can get to your question today.

David: It's a continuous discussion with everyone over the next couple of weeks.

David: Thanks, a long of time, thanks for the questions guys.

Speaker Change: Spiegel quite soon.

David: Thanks, Mike. Thank you. Thank you for the questions Mike.

Speaker Change: Okay.

Speaker Change: Thank you for joining today's call with KFC you May now does that from the webinar. Please enjoy good afternoon and.

Speaker Change: And thank you again for attending.