Net1 UEPS showing signs of improvement says CFO Alex Smith

The company has made a lot of operational progress by exiting its loss-making operations.

Net1 UEPS Technologies has reported a net loss of $6.2 million (around R87 million) for the three months ended March, seeing a significant improvement from a $35 million (around R491 million) loss in 2020.

“We have made a lot of operational progress over the past quarter in exiting our loss-making European operations and preparing the South African operations for significant account growth,” said Net1 CFO and interim CEO Alex Smith, referring to the recent disposal of its Liechtenstein-based Bank Frick for $30 million (around R421 million).

While the company has seen an improvement in its results, it’s still not in the black as it reported a revenue of $28.8 million (around R404 million), a decrease of 17 percent from Q3 2020. It also reported an operating loss of $14.3 million (around R200.7 million) and EBITDA loss of $12.8 million (around R179.6 million).

However, Alex said that the company is making progress in its mission of driving financial inclusion for the underserved market having recently hired a new “dynamic, highly accomplished and experienced CEO” for Net1 Southern Africa, Lincoln Mali.

“Our new strategy, mission and leadership has also enabled us to attract some amazing new talent among the senior management ranks,” Alex said.