Net 1 UEPS has reported revenue of $86,5-million for the third quarter of 2019.
A fundamental EPS of ($0.62) includes $25,2-million, or $0.44 per share of non-cash fair value loss adjustments for Cell C, net of tax, and the impairment of the Cedar Cell note.
The group reported an operating loss of $21,7-million, with adjusted EBITDA improving sequentially to a loss of $(1,1)-million.
“We are pleased that our core South African operations demonstrated far more stability during the third-quarter, allowing us to focus on our extensive cost-containment exercise, a significant reduction of debt and other obligations, and the first steps towards the realization of value of some of our assets,” says CEO Herman Kotze.
“The retrenchment of thousands of Net1 family members has been one of the most difficult processes we have ever faced, and we completed the necessary actions to remain on track to achieve a monthly EBITDA-neutral position for our South African operations by the end of Q4 2019.
“The board and management remain squarely focused on reviewing all options available for the group, and will provide updates when there are tangible actions to report.”
He adds: “In Korea, our advisors are actively engaged with management to execute the near-term action items to drive higher growth and profitability, and in parallel, our Board, with financial advisors, is reviewing the strategic alternatives for this business.
“Cell C is focused on managing its near-term liquidity constraints, closing its transaction with a new minority investor and improving the performance of the business.
“Our other equity investments continued to perform in line with expectations during the quarter,” says Kotze. “With the deleveraging of the balance sheet that has been achieved since our last report, we remain comfortable with our liquidity position for the next 12 months.”