Net1’s role in the SA Social Security Agency’s (Sassa’s) fraught social grants payments tenders has done the company no favours with local investors. Full-year and fourth-quarter results that were released by the payments company were not catastrophic given the Sassa contract loss: flat revenue of $613m and a 15% drop in adjusted earnings before interest, tax, depreciation and amortisation to $127.2m, although the results drove its shares 18% weaker on Thursday. Business Day asked CEO Herman Kotzé how they have made up the shortfall? We’ve been preparing for the end of this specific contract for quite some time. The Q4 results [were] generated with very little contribution from Sassa so it’s probably a fair indication of … the business going forward and … it’s certainly not a catastrophic component to lose. We will continue and we will thrive. • What has been catastrophic, however, is your reputational damage. How will you restore Net1’s standing? I think we were unfairly tainted an...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.