Net 1 UEPS Technologies is moving towards profitability, with more positive results reported for the quarter ended 31 December 2021.
Continued momentum in Easy Pay Everywhere (EPE) saw that business ending the quarter with just under 1,1-million EPE accounts.
Overall, the company had unrestricted cash of $182,4-million on 31 December, posting reevenue of $31,1-million, a decrease of 4% from Q2 2021.
Net1 saw a 38% recovery in operating loss to $(9,4)-million in Q2 2022, reflecting the direct cost reductions in its consumer business.
With GAAP EPS of $(0.22) and fundamental EPS of $(0.13), there was a 42% improvement in adjusted EBITDA loss to $(7,1)-million, underpinned by the turnaround in the consumer business.
“I am pleased with the progress we made in Q2, towards our strategic goal of returning our consumer financial services business to breakeven and then profitability as soon as possible,” says Chris Meyer, group CEO of Net1.
“During the quarter we continued to grow active accounts, improved average revenue per customer and delivered on our cost savings initiatives. We have seen this positive momentum translate into a marked improvement in the operational performance of our consumer business compared to Q1.
“We are looking forward to finalising the Connect Group acquisition in Q3, which will transform our Merchant business, once all the regulatory approvals are in place.
“We also made key enhancements to our management team, positioning us with the right leadership to successfully execute our long-term growth strategy and advance our key initiatives.
“However, we know there is still a lot more work to be done as we continue our journey of building the leading South African fintech platform for underserved consumers and merchants.”