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Business Update for the six months ended 30 September 2026
Araxi Limited
Incorporated in the Republic of South Africa
(Registration number 2014/253277/06)
Share code: AXX ISIN: ZAE000208245
(“Araxi” or "the Company" or “the Group”)
BUSINESS UPDATE FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2026
This announcement provides shareholders and other interested parties with a brief update on the Group’s
operating performance for the first six months of the 2027 financial year and the state of the markets in
which we operate.
South Africa’s business environment remains uncertain, as geopolitical challenges continue to disrupt
supply and demand, increase operating costs, and delay major capital investment decisions across
multiple sectors. At the same time, rapid technological advancement and digital transformation are
demanding enterprises adapt to remain competitive, improve efficiency, and meet rising consumer
expectations. Araxi remains well positioned to support its customers in this environment.
Payments division
The payments sector remains dynamic, with both exciting opportunities and short-term transitional
challenges, all in line with global markets. The overall market for payment terminals and related services
in South Africa continues to grow, despite prevailing circumstances:
- In response to budget constraints and efficiency initiatives, enterprise customers are reassessing
their ownership models and seeking immediate opportunities to reduce the lifetime costs of
terminal estates;
- Merchants and bank customers are re-evaluating the appropriate terminal estate form factors for
traditional retail environments;
- Initiatives to broaden the base of digital payment acceptance are being pursued by
existing providers and new entrants in an increasingly competitive environment, giving
rise to opportunities for low-cost, highly functional devices;
- Conventional standalone card terminals are increasingly evolving into software-driven
commerce devices with increasing focus on value-added software solutions; and
- NFC-enabled devices are starting to compete with dedicated terminals through
SoftPOS/Tap-to-Pay implementations in both traditional and SME spaces.
Araxi is a meaningful participant in all three of these form factor trends and can accommodate the various
operating models being considered.
Against this backdrop, together with regulatory changes and the SARB modernisation initiative, new
terminal orders and deployments have been postponed, ongoing terminal maintenance has been
negatively impacted, and overall performance in the terminal business in H1 has been disappointing and
well below expectation. However, management believes that the medium- and long-term outlook for
device deployment remains positive as the fundamental driver remains digitalisation and the migration
away from cash. A reasonable pipeline of opportunities continues to progress for H2. License revenue
and other related revenues are also progressing in line with the growth of the active estate.
Halo Dot continued to make good progress in the current period, attracting several new clients and
pursuing numerous meaningful global partnerships, which should translate into meaningful future
revenue generation opportunities.
We are pleased with the progress we have made in integrating the Pay@ business into Araxi and the
positive reception of the enhanced capabilities by clients, customers, partners and staff. Pay@ continues
to perform well and positively against expectations. Four months of its performance will be included in
the interim results.
Software division
The Software division’s recovery has continued, with increasing sales and a strong project pipeline. The
disciplined expense management implemented in the prior year has delivered significant year-on-year
cost savings, translating into improved profitability.
The Software division continues to position itself as a leading provider of services in the mission-critical
and strategically important areas of AI, Agentic AI, Intelligent Data and Cloud, which has led to notable
demand for its services. Looking ahead, the medium-term outlook remains positive.
Group
The performance of the associate and investee companies, LayUp and AssetPool, has been in line with
expectations.
The Group continues to invest in and deploy capital strategically towards growth initiatives which
management believe are aligned to Araxi’s long-term value creation objectives.
General
The information in this business update has not been reviewed or reported on by the Group's external
auditors.
Araxi’s closed period will commence on 1 October 2026. The Group intends to release its interim results
for the six months ended 30 September 2026, on or about 8 December 2026.
Sandton
30 September 2026
Sponsor: Investec Bank Limited
Date: 30/09/2026 05:05:00
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