Net 1 UEPS Technologies has reported an operating loss of #10,8-million for its first quarter.
The company saw revenue of $37,1-million for the period, which is a constant currency decrease of 12% from Q1 2020, but an increase of 39% from Q4 2020.
And adjusted EBITDA loss of $9,8-million is a sequential improvement from a loss of $12,2-million in Q4 2020.
As at 30 September, the company had unrestricted cash of $209-million and no debt.
“We are pleased to see some encouraging signs in our operational and financial results this quarter,” says Alex Smith, Net1’s interim CEO and CFO. “With the return to full operations, we have seen increased transaction processing volumes, loan originations, and a significant increase in the utilisation of our ATM infrastructure over Q4 of FY2020.
“While we do not yet have a resolution of our Investment Company Act status, we believe we have the right team involved and are working diligently to resolve this issue as soon as possible.
“In the meantime, the board has formed a capital allocation plan to return capital to shareholders while also providing adequate funds for internal organic growth as well as strategic acquisitions for the company,” he adds.
“Our long-term initiatives remain unchanged – to be the leading financial technology company in South Africa focused on underserviced customers.
“We believe that we have the capabilities, technology and infrastructure to make this strategic vision a reality. We believe that Net1 is better placed than any other business in the country to service that very large total addressable market and look forward to the journey ahead,” Smith concludes