Net1’s revenues nearly halve after Sassa contract expires
Third-quarter revenue falls to $86.5m but CEO Herman Kotzé says the group’s core SA operations demonstrated more stability
Net1 plans to focus more heavily on its fintech strategy as the technology company continues the search for stability in a post-social-grants era. The company said on Friday its revenues fell as much as 47% in the three months ended March after its contract to distribute social grants in SA expired. Third-quarter revenue dropped to $86.5m from $162.7m a year before, the group said. It made a net loss of $54.8m, from a $32.4m profit a year before. Net1 previously distributed grants on behalf of the SA Social Security Agency (Sassa). Revenue at its SA transaction-processing business declined 72% on a constant-currency basis “primarily due to the substantial decrease in the number of Sassa grant recipients paid under our Sassa contract as the contract ended at the end of the first quarter of 2019”.
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