Cassava's mobile money transactions down 19%

By Staff Writer | 04 Feb 2020 at 16:37hrs
Cassava's product and service lines performed well in the third quarter ended 30 November 2019, except for mobile money transactions which declined 19%, in a trading period where current tariffs lagged behind inflation.

The success of the group's business is predicated upon stability, efficiency and effectiveness of its technology platforms.

"Consistent with the H1 FY20 performance, we continue to see an increase in volumes across almost all product and service lines, notwithstanding the erosion of tariffs in real terms that have not matched the inflation rate," company secretary Charmaine Daniels said in a statement on Thursday.

The number of active customers increased by 17%.

Steward Bank's customer base rose 75% from Q3 FY19 to Q3 FY20.

"The Bank has, however recorded a decline in transactions on its Point of Sale terminals by an average of 46% from the Q3 FY19 to Q3 FY20, a trend which is commensurate with declining volumes in the retail sector as consumer disposables incomes fails to keep up with inflation."

The insurtech business recorded a 17% growth in life policies in the period under review. Short term insurance business increased by 5.050% compared to the same period prior year. The fintech group noted that the EcoSure and Moovah businesses have managed to maintain their claims ratio at a level lower than the industry average.

Cassava Smartech has developed a strong track record of leveraging technology to successfully deploy innovative insurance products that promote financial inclusion. These include the widely adopted EcoSure funeral cover and the fast-growing Ecosure Moovah motor vehicle cover.

While the operating environment remains challenging, the group will continue to focus on identifying and developing opportunities in the market that are consistent with the changing customer demands without compromising on service excellence.

On the Zimbabwe Stock Exchange, Cassava share is currently trading at 150.99 cents, with YTD price increase of +7.62% and a market capitalization of $3.91 billion. The stock has a 52 week high of 234.64 cents and a low of 100 cents with a 52 week change of +4.92%. According to the OMIR the share is currently trading at USc 5.70 with an implied YTD of +3.88%.



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