In its latest financial results report for the first quarter of 2023, the Uruguayan fintech dLocal reported income for $137.3 million what a meant 57% year-on-year climbmotorized mainly by its businesses in Asia and Africaparticularly in Nigeria.
In Latin America, meanwhile, the percentage was 26.6%, less than average. Still, your stake in total is 72% at the moment.
Revenue growth in the region from $77.6 million in the first quarter of 2022 to $98.2 million of the same period of this is mainly explained by the better results in Mexico, which went from generating 12.9 million dollars to $22.7 million this year (76%). In that nation, the company plans to continue expanding.
However, Brazil It remains the most important market for dLocal in Latin America, accounting for 17% of its total revenue. From the first three months of last year to this year, said market went from contributing 18.1 million dollars to $22.8 million (26%).
Another country where the company increased its income was Chili, which went from 12.1 million dollars to $14.2 million (17.4%). Argentina was the only major nation in the region to show a drop, from 21.1 million dollars to 20 million dollars (-5.21%), Going from representing 24% of the total in 2022 to 15% currently.
In other latin american countriesthe increase was 38%, until reaching the $18.5 million.
The Argentine case, a focus of attention for dLocal
Although in the interannual comparison the income of Argentina was located slightly below in the last report, compared to the previous quarter registered a 41% increase, something that the president of dLocal, Jacobo Singer, highlighted. who underlined:We have had a great quarter in Argentina”.
“We are seeing fundamentally good trends coming back to this market after a crisis that hit us through the third and fourth quarters of 2022,” he added.
The devaluation of the Argentine peso it became a barrier for many firms in the neighboring country. However, it is still the fourth market that contributes the most to the firm.
“We have been operating in Argentina for all these years, there has been a constant devaluation and our business has not suffered from it. You have to keep in mind that we have global merchants who think of their products in dollars,” Singer said.
The president then specified: “Generally, when there is a devaluation, they re-fix the price and, therefore, the devaluation does not affect our ability to expatriate or repatriate funds at all. It’s just a different price at which we buy or sell currencies.” And he concluded:We do not expect any impact from the devaluation of the coin We do not have exact exposure to Argentina and our income is in dollars”.
Nigeria, the raw mine that multiplied its income almost 17 times
For its part, the income of the Uruguayan unicorn in Africa and Asia they shot a 297% YoY –from 9.8 million dollars to 39 million dollars– and 53% compared to the previous quarter. Therefore, these markets together already represent a considerable 28% of the pie.
In case of Nigeria is particularly notable. In just 12 months, multiplied 17 times the 1.6 million dollars of the first quarter of 2022 to reach the sum of $26.9 million this year, becoming the country that generates the highest income in the world for dLocal (one fifth of the total).
The company’s vice president of corporate development and investor relations, Mary Oldhammaintained that “the opportunity in Nigeria is enormous, since the country has a large and young population”.
Meanwhile, dLocal is strongly committed to the continent and to that country specifically in search of providing payment solutions, mainly motivated by its low financial inclusion and a growing adoption of digital proposals by a population that, in addition, has projected a large demographic growth to future.
Source: Ambito
