Net 1 UEPS Technologies has reported third quarter revenue of $151,1-million, an increase of 18% over the same period last year.
The company has cash and equivalents of $111-million as of 31 March 2015 and operating cash flow of $49,3-million in Q3 2015.
In a statement, the company lists some of the things that have impacted its results. They include:
* Unfavourable impact from the strengthening of the US dollar against the rand: The dollar appreciated by 8% against the rand during Q3 2015, which negatively impacted our reported results;
* Increased contribution by KSNET: Results were positively impacted by growth in our Korean operations and a refund of $1,7-million that had been paid several years ago in connection with industry-wide litigation that has now been finalised;
* Increase in the number of SASSA grants paid: Our revenue and operating income have increased as a result of the higher number of SASSA UEPS/EMV cardholders paid during fiscal 2015 compared with 2014; and
* Continued growth in financial inclusion services: We continued to grow our financial inclusion services offerings during Q3 2015, which has resulted in higher revenues and operating income from more sales of low-margin prepaid airtime and UEPS-based lending.
“I continue to be very positive about the future of our Group as we continue to diversify our business activities to minimize the risks that are intrinsic in customer concentration, government contracts and localized business conditions,” says Dr Serge Belamant, chairman and CEO of Net1.
“This was our overarching strategic objective and it is a testament of our staff’s competence and dedication that we were able to achieve this goal whilst continuing to grow our revenue and profitability,” he adds.
“Our financial and operating performance, including the increased investment in our newer growth and international initiatives, continues to track the strategic developments in our business,” says Herman Kotzé, chief financial officer of Net1. “We are increasing our expected fundamental earnings per share for fiscal 2015 to at least $2.38, assuming a constant currency base of ZAR10.40/$1 and a share count of 46,5-million shares.”
Regarding the ongoing SASSA tender case, a new RFP specifies that bidders must submit their proposals to SASSA on or before 18 May 2015 and also states that no part of the contents of the RFP may be used, copied, disclosed or conveyed in whole or in part to any party in any manner whatsoever other than for the purpose of the proposal.
Net 1 is currently analysing the RFP to determine whether it is in the best interest of the company to participate in the tender process or to focus on its other financial services businesses without being a contractor to SASSA.