Weaver Fintech (WVR) investor relations material

Executive summary

• Group revenue increased 10% year-over-year to R2.8 billion, driven by strong growth in payments and insurance, while lending was deliberately curtailed due to market headwinds.

• Profit before tax declined 9% year-over-year, impacted by higher provisions and debtor costs in lending.

• Customer base grew 17% to 5.1 million, with high retention, 70% female, and 30% Gen Z, indicating strong traction in target demographics.

• Strategic focus on digital transformation, AI adoption, and ecosystem expansion to drive engagement and cross-sell.

• Retail is being reshaped into a smaller, more profitable business with a focus on cash generation and improved credit quality.

Financial highlights

• Payments revenue surged 88% year-over-year, lending revenue up 21%, insurance revenue up 13–18%, while retail revenue declined 22–27%.

• Group trading profit reached R578 million, up 2% year-over-year; trading profit margin at 28%.

• Fintech fee income rose 43%, now 40% of segment revenue; fintech revenue up 30%.

• Cash generated from operations increased by over R300 million; closing cash and facilities at R1.1 billion.

• Headline earnings per share fell 10%; no interim dividend declared to preserve capital for fintech investment.

Outlook and guidance

• Payments and merchant verticals expected to be fastest-growing in H2; payments growth to accelerate further.

• Continued focus on tightening credit and maintaining conservative provisioning amid macro uncertainty.

• Anticipated expansion to 18,000 merchants by year-end via PSP integration.

• Ongoing investment in AI and technology to enhance operational efficiency and customer engagement.

• Management anticipates ongoing credit headwinds but remains confident in long-term growth due to revenue diversification and strong cash generation.