Even though tax and interest costs took a big bite out of Letshego Africa’s cash, about P1.3 billion, the company’s daily operations were strong enough to keep money coming in for investors.
In the first half of 2025, Letshego earned P2.235 billion from interest payments. To keep operations running, the company also has to borrow money and pay interest. Letshego’s financials show it paid P830 million in interest. Income tax paid was P473 million. Combined, this is a P1.3 billion outflow.
After paying these costs, the company still had P643 million left from day-to-day operations. That’s a big improvement from last year, when it lost P61 million. This change came from managing money better, especially by collecting cash from customers faster. Letshego even generated P191 million in working capital, compared with a drop of P622 million last year.
Last year, Letshego also raised cash by selling government bills and bonds—about P145 million. This year, it sold less, only P41 million. Spending was careful too, with P33 million going into property and P7 million into other long-term assets, from P15 million and P23 million last year. Overall, investment cash barely changed, just a small P95,000 gain compared with P103 million last year.
Even with cautious spending, Letshego’s cash grew by P606 million, bringing the total cash to P1.94 billion, up from P1.55 billion last year. However, the dividends for shareholders are still on hold.
Read related articles: Where Letshego Makes Your Money, Pula Changes Could Cost or Pay You At Letshego, Letshego Keeps More After Tax: What It Means For Investors
