Net1 CEO Herman Kotzé sounded reasonably upbeat on the teleconference with analysts last week following the release of what one analyst described as a “shocking” set of quarterly results. Presumably the more shocking the results, the more upbeat you have to sound. Kotze referred to a “new dawn” for Net1 in South Africa since October 1 when the company was relieved of the Constitutional Court obligations to ensure the smooth payment of social grants to almost 11-million recipients monthly. The subsequent crash in the share price towards all-time lows indicates investors were not persuaded by his talk of strong post-SA Social Security Agency market growth. They may instead have focused on his warnings that the next few quarters could also be a bit tough. It is difficult to imagine that things might not improve from the extremely tough situation facing Net1 during the six months to end-September. Its Cash Paymaster Services (CPS) subsidiary was forced to continue distributing cash gran...

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 articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now