Kaspi.kz JSC - ADR

Strong Q1 Performance: Kaspi.kz reported a solid Q1 2025 financial performance, with revenue up 21% and net income increasing by 16% year-over-year. The payments platform saw a revenue growth of 16%, while the marketplace outperformed with a 33% increase in revenue and 20% GMV growth.

Temporary Impact from Smartphone Regulations: The introduction of government regulations requiring the registration of imported smartphones led to a rise in prices and a corresponding decline in demand. This affected expected GMV growth, which would have been closer to 30%, instead of the reported 20%. The expectation is a catch-up effect could occur in the second half of the year.

Outlook Adjustments: Guidance for GMV growth has been revised down to 15%-20% from an earlier forecast of 25%-30%. This reflects the short-term impact of smartphone regulations and increased macroeconomic uncertainty impacting high-ticket discretionary categories, such as consumer electronics and cars.