Net 1 UEPS Technologies has reported an increase of approximately 27 000 EasyPay Everywhere (EPE) account holders, accouncing its third quarter results.
During the period, the group saw a non-cash increase of $10,8-million, before tax effect, in the fair value of investment in MobiKwik. It also sold its entire interest in Bank Frick for $30-milliom.
Net 1 reduced its IPG operating loss from $3,2-million in Q2, 2021, to $1,2-million in Q3, 2021, excluding the impact of the $3,6-million once-off payment to terminate all arrangements with Bank Frick and settle all related liabilities, of which $1,4-million and $2,2-million was expensed during the second and third quarter of 2021, respectively.
As at31 March 2021, the group had unrestricted cash of $208-million and no debt.
Revenue of $28,8-million for the quarter was a decrease of 17% from Q3 2020.
The group posted an operating loss of $14,3-million, GAAP EPS of $(0.11) and fundamental EPS of $(0.24), and an adjusted EBITDA loss of $12,8-million, flat compared to Q2 2021.
“We have made a lot of operational progress over the past quarter in exiting our loss-making European operations and preparing the South African operations for significant account growth,” says Alex Smith, Net1’s interim CEO and chief financial officer.
“We are making progress in our mission of driving financial inclusion for the underserved market having recently hired a new dynamic, highly accomplished and experienced CEO of Net1 Southern Africa, Lincoln Mali, who is well respected and experienced in the South African financial services and banking industry.
“Our new strategy, mission and leadership has also enabled us to attract some amazing new talent among the senior management ranks,” he adds.