Net1 receives bad news on all fronts
News that SA business has been stabilised and the management is now focused on returning to profitability appears to have countered the grim events on Cell C front
The Net1 share price has held up reasonably well given the avalanche of bad news it has had to deal with over the past few months. At R51 it’s comfortably off the 12-month low of R38.60 the share touched in August. Presumably investors were swayed by the upbeat comment the board provided with the recently released quarterly results.
News that Net1’s SA business has been stabilised and the management is now focused on returning to growth and profitability appears to have countered the grim developments on the Cell C front. Net1 took a $125.4m hit on the valuation of its Cell C investment during the three months to end-June but has not given up hope. It still thinks, it can “create a long-term sustainable business” with a bit more funding.