Lasco Financial posts loss of $14.9 million at nine months as remittances shrink
Downtime experienced by remittance partner Moneygram, and other challenges in December quarter led to Lasco Financial Services (LFSL) posting a loss for the nine-month period ended December 31, 2024.
LFSL provides Cambio (FX), remittance, loans, and prepaid card services.
The company reported consolidated income of $1.587 billion for the nine months of the 2024-2025 financial year, a seven per cent decrease or $120.4 million less income, when compared with the corresponding 2023-2024 period.
However, the result was a loss after tax of $14.9 million, a significant fall off from the comparative 2023- 2024 period, which generated a profit of $92.3 million.
Managing Director Jacinth Hall-Tracey said that the three months results for December fell well below expectations, “December traditionally being our strongest season for financial services.”
She added however, “We believe, however, that this fall off, driven by the sudden decline in the remittance business segment since September will be readjusted in coming months as LFSL and key partners make efforts to reclaim previous market share; a decline in remittance for LFSL also results in a decline in Cambio trade margins, as both services are intrinsically linked.”
The microfinance arm which does lending meanwhile yielded nine-month profits of $88 million in spite of the circumstances.
The company reported consolidated expenses for the year to date totaled $1.507 billion, an increase of 1.3 per cent or $19.6 million.
Operating profit for the period was $80.2 million, $140.0 million less than previous comparative period.
Administrative expenses declined by $35.1 million but selling and promotions expenses increased by $55.0 million reflecting increased expenses associated with the company’s card service and provisions from the company’s loan business.
The consolidated revenue for the quarter was $503.9 million and a loss of $24.0 million compared with $557.4 million and $36.3 million for revenues and profit respectively for the comparative period.
Hall said that strategic investments made during the previous years, particularly in a Visa card program, is promising, as it has “has positioned us for growth in digital payments, as such we remain focused on optimizing our remittance operations for improved value, restructuring our microfinance division to return to profitability and leveraging our investments in the Visa card program to drive new revenue streams.”
She stated, “Management is still expressing confidence in the core business fundamentals which remain solid.”
Total assets increased over December 2023, though down by $247 million when compared with the financial year end, the main contributing factor being a reduction in receivables.
Hall-Tracey concluded, “Management’s key focus for the next quarter is to adjust the operational costs in line with our revenues, continue to scale the digital remittance services and to maximize on opportunities within the market.
“We implemented some cost containment measures in the second quarter which continue to yield benefits, however, the reduction in revenues caused by challenges experienced by a key partner caused lower than expected Third quarter revenues.
“Further steps will be implemented in coming periods to increase the pace of contribution of our digital products, reclaim market share for remittances and to improve the general performance of LASCO Microfinance and its contribution to profit.”
However, the result was a loss after tax of $14.9 million, a significant fall off from the comparative 2023- 2024 period, which generated a profit of $92.3 million.
Managing Director Jacinth Hall-Tracey said that the three months results for December fell well below expectations, “December traditionally being our strongest season for financial services.”
She added however, “We believe, however, that this fall off, driven by the sudden decline in the remittance business segment since September will be readjusted in coming months as LFSL and key partners make efforts to reclaim previous market share; a decline in remittance for LFSL also results in a decline in Cambio trade margins, as both services are intrinsically linked.”
The microfinance arm which does lending meanwhile yielded nine-month profits of $88 million in spite of the circumstances.
The company reported consolidated expenses for the year to date totaled $1.507 billion, an increase of 1.3 per cent or $19.6 million.
Operating profit for the period was $80.2 million, $140.0 million less than previous comparative period.
Administrative expenses declined by $35.1 million but selling and promotions expenses increased by $55.0 million reflecting increased expenses associated with the company’s card service and provisions from the company’s loan business.
The consolidated revenue for the quarter was $503.9 million and a loss of $24.0 million compared with $557.4 million and $36.3 million for revenues and profit respectively for the comparative period.
Hall said that strategic investments made during the previous years, particularly in a Visa card program, is promising, as it has “has positioned us for growth in digital payments, as such we remain focused on optimizing our remittance operations for improved value, restructuring our microfinance division to return to profitability and leveraging our investments in the Visa card program to drive new revenue streams.”
She stated, “Management is still expressing confidence in the core business fundamentals which remain solid.”
Total assets increased over December 2023, though down by $247 million when compared with the financial year end, the main contributing factor being a reduction in receivables.
Hall-Tracey concluded, “Management’s key focus for the next quarter is to adjust the operational costs in line with our revenues, continue to scale the digital remittance services and to maximize on opportunities within the market.
“We implemented some cost containment measures in the second quarter which continue to yield benefits, however, the reduction in revenues caused by challenges experienced by a key partner caused lower than expected Third quarter revenues.
“Further steps will be implemented in coming periods to increase the pace of contribution of our digital products, reclaim market share for remittances and to improve the general performance of LASCO Microfinance and its contribution to profit.”
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