Net1 ‘steadied ship’ in tough times
New CEO Herman Kotze told analysts that the past five months have been among the most turbulent in Net1 history
Separation expenses of about $9.6m paid to its former CEO and costs related to US government investigations were among the factors hitting Net1’s results in the quarter to end-June. The Generally Accepted Accounting Principles (GAAP) net income — the measure used by US listed companies — slumped 59%, to $11.3m for the three months. For the full year to end-June, GAAP net income had fallen 12%, to $73m. New CEO Herman Kotze told analysts on Friday the past five months had been among the most turbulent in Net1 history. "But despite the multiple challenges, we have successfully steadied the ship and put in place the mechanisms and structure to optimise and consolidate our businesses." The "eventful" five months included the completion of the R2bn acquisition of a 15% interest in Cell C. Kotze would not take any questions on the South African Social Security Agency (Sassa) or Net1 subsidiary Cash Paymaster Services (CPS), although he did thank former CEO and founder Serge Belamant. "I w...