Continuing operations FY 2024 results

Following the sale of Russian business comparative historical data related to those assets has been reclassified to discontinued operations in order to conform to the current period's presentation. Unless otherwise stated, the following discussion on operating and financial results of the Company refers to continuing operations.

Payment Volume and Net Revenue

Payment Volume was 35.8% lower YoY and stood at USD 0.4 bn. affected by the ongoing process of reestablishing partner relationships following the restructuring of the group.

Revenue and Net Revenue decreased by 40.1% YoY to USD 13,503 thsd. and by 36.4% YoY to USD 7,610 thsd., respectively, primarily resulting from the decline in payment volume.

Net Revenue Yield was 2 bps lower YoY and amounted to 1.84% driven by Net Revenue reduction.

Operating expenses and other non-operating incomeⁱ

Operating expenses declined by 81.6% YoY to USD 14,204 thsd. The key factor driving this change is credit loss recovery of USD 1,780 thsd., of which USD 583 thsd. are related to the release of allowance for expected credit losses (ECL) on receivables for the sale of Russian business. In contrast, there was a credit loss expense of USD 52,467 thsd. in 1H 2024, including an amount of USD 49,258 thsd. arising from the provision accrued in relation to receivables from the sale of the Russian business.

Cost of revenue decreased by 44.3% to USD 5,893 thsd., mostly due to a reduction in payment volumes. Selling, general and administrative expenses dropped by 56.9% YoY to USD 3,240 thsd., mainly reflecting lower cost of external professional services. Personnel expenses increased by 5.6% YoY to USD 6,454 thsd., primarily following the strengthening of in-house competencies during the ongoing reorganization.

Other non-operating income in the reporting period reached USD 94,114 thsd. and comprised (i) the foreign exchange gain, net of USD 84,979 thsd. of which USD 73,851 thsd. related to receivables from the sale of Russian business denominated in Russian Rubles, (ii) interest income, net of USD 15,041 thsd. mostly related to recalculation of amortized cost of receivables from the sale of Russian business driven by unwinding of the discount and the change of the payment schedule, and (iii) other expenses, (net) of USD 3,907 thsd.

Adjusted EBITDA Loss and Adjusted Net Loss

 

 

Adjusted EBITDA Loss was up to 24.6% YoY, reaching 2,084 thsd. A 36.4% YoY decrease in Net Revenue from lower payment volume was partially offset by effective cost management in selling, general, and administrative expenses.

Despite the deterioration in Adjusted EBITDA Loss, lower income tax for 1H 2025 contributed to Adjusted Net Loss improvement by 20.8% YoY to USD 2,729 thsd.

Key events after the reporting period

• On September 11, 2025 NanduQ announced Annual General Meeting of Shareholders.[7]

 

Forward-Looking Statements

This press release includes “forward-looking statements” including, without limitation, statements regarding NanduQ’s current and future operations and financial condition, NanduQ’s development plan post-restructuring and ability to enter into sufficient M&A deals, NanduQ’s ability to receive the payment from the sale of its Russian business and generate sufficient cash flow; and NanduQ’s ability to implement its strategic initiatives in its countries of operations.

Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of NanduQ to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to, the macroeconomic conditions in each of the international markets in which we operate, growth in each of our markets, competition, the introduction of new products and services and their acceptance by consumers, NanduQ’s ability to estimate the market risk and capital risk associated with new projects, a decline in net revenue yield, regulation, NanduQ’s ability to grow physical and virtual distribution channels, cyberattacks and security vulnerabilities in NanduQ’s products and services, NanduQ’s ability to expand geographically, the risk that new projects will not perform in accordance with its expectations and other risks identified in other reports and filings of NanduQ plc. NanduQ undertakes no obligation to revise any forward-looking statements or to report future events that may affect such forward-looking statements unless NanduQ is required to do so by law.

 

 

NanduQ plc. Interim condensed consolidated statement of financial position
(in thousands of US Dollars)

 

NanduQ plc. Interim condensed consolidated statement of comprehensive loss / income
(in thousands of US Dollars, except per share data)
(Unaudited)

 

NanduQ plc. Interim condensed consolidated statement of cash flows
(in thousands of US Dollars)

(Unaudited)

 

*Amounts do not correspond with the previously presented due to recalculation of the loss after tax from discontinued operation

Non-IFRS Financial Measures and Supplemental Financial Information

This release presents Net Revenue, Adjusted EBITDA Loss, Adjusted Net Loss which are non-IFRS financial measures. These non-IFRS financial measures should not be considered as substitutes for or superior to revenue, in the case of Net Revenue; Net (Loss) / Profit, in the case of Adjusted EBITDA Loss, Adjusted Net Loss each prepared in accordance with IFRS.

Furthermore, because these non-IFRS financial measures are not determined in accordance with IFRS, they are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. NanduQ encourages investors and others to review our financial information in its entirety and not rely on a single financial measure. For more information regarding Net Revenue, Adjusted EBITDA Loss, Adjusted Net Loss including a quantitative reconciliation of Adjusted EBITDA Loss and Adjusted Net Loss to the most directly comparable IFRS financial performance measures, which is Net (Loss) / Profit in the case of Adjusted EBITDA Loss and Adjusted Net Loss, see Reconciliation of IFRS to Non-IFRS Operating Results in this earnings release.

We define non-IFRS financial measures as follows:

Net Revenue is a key measure used by management to observe our operational profitability since it reflects our portion of the revenue net of fees that we pass through, primarily to our agents and other reload channels providers. In addition, under IFRS, most types of fees are presented on a gross basis whereas certain types of fees are presented on a net basis.

Adjusted EBITDA Loss from continuing operations is a key measure used by management as a supplemental performance measure that facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures, changes in foreign exchange rates that impact financial assets and liabilities denominated in currencies other than our functional currency, tax positions, the age and book depreciation of property and equipment, non-cash charges, and certain one-off income and expenses. Adjusted EBITDA Loss also excludes other expenses and share of loss of an associate because we believe it is helpful to view the performance of our business excluding the impact of entities that we do not control. Because Adjusted EBITDA Loss facilitates internal comparisons of operating performance on a more consistent basis, we also use Adjusted EBITDA Loss in measuring our performance relative to that of our competitors.

Adjusted Net Loss from continuing operations is a key measure used by management to observe the operational profitability of the company. We believe Adjusted Net Loss is useful to an investor in evaluating our operating performance because it measures a company’s operating performance without the effect of non-recurring and one-off items or items that are not core to our operations. For example, interest income and credit loss (recovery)/expense do not represent the core operations of the business and do not have a substantial cash effect. Nevertheless, such gains and losses can affect our financial performance.

• “Net Revenue” is calculated by subtracting cost of revenue from revenue.
• “Adjusted EBITDA Loss from continuing operations” is a key measure used by management as a supplemental performance measure that facilitates as Net (loss) / profit from continuing operations plus/(less): (1) depreciation and amortization, (2) credit loss (recovery)/expense, (3) share of loss of an associate, (4) loss from disposal of associate, (5) foreign exchange (gain), net, (6) interest (income) and expenses, net, (7) other (income) and expenses, net (8) income tax expense.
• “Adjusted Net loss from continuing operations” as Net (loss) / profit from continuing operations plus/(less): (1) credit loss (recovery)/expense, (2) share of loss of an associate, (3) loss from disposal of associate, (4) foreign exchange (gain), net, (5) interest (income) and expenses, net, (6) other (income) and expenses, net.

Payment volume provides a measure of the overall size and growth of the business, and increasing our payment volumes is essential to growing our profitability.

Net revenue yield. We calculate Net Revenue yield by dividing Net revenue by the Payment volume. The Net revenue yield provides a measure of our ability to generate net revenue per unit of volume we process.

As a result of Russian business disposal, the Group has changed the composition of its operating segment. This change led to the change in reportable segments. The major part of reported revenue and profit or loss from continuing operations relates to payment services. Therefore, management identified one segment — Payment Services. Starting from January 2024 CODM (the Chief executive officer (CEO) of the Group is considered as the chief operating decision maker of the Group) has been monitoring performance within one segment for making operating decision. Payment Services (PS) is the operating segment that generates revenue through operations of the payment processing system offered to the Group’s customers through a diverse range of channels and interfaces. All corporate expenses were allocated to this segment accordingly.

 

 

NanduQ plc
Reconciliation of IFRS to Non-IFRS Operating Results
(in thousands of US Dollars, except per share data)

 

The press release for the first half of the year ended June 30, 2025 was authorized for issue on September 11, 2025 by the Board of Directors of the Group.