Net1’s bottom line suffers 72% decline

Net1 CEO, Herman Kotze | Image: Twitter

Net1 CEO, Herman Kotze | Image: Twitter

The company also had to lay off thousands of their staff members as a result of their loss of the contract.

Financial services group Net 1 UEPS Technologies has reported a 72% decline in their bottom line since their Sassa contact came to an end during the first quarter of 2019.

“The decrease in segment revenue and operating income was 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 Q1 2019,” said Net1 in a statement.

According to Business Report, this loss has been offset by an increase in the use of their ATMs and the revenue generated by processing all those transactions.

RELATED: Net1 accused of overstating financial losses in Sassa fee negotiation

Despite this dip in revenue and a R400 million vendor obligation, the company’s CEO, Herman Kotzé, seemed very positive about the company’s future.

“We are pleased that our core South African operations demonstrated far more stability during the third-quarter, allowing us to focus on our extensive cost-containment exercise, a significant reduction of debt and other obligations, and the first steps towards the realisation of value of some of our assets,” said Kotzé.

The company also had to lay off thousands of their staff members as a result of their loss of the contract.

READ NEXT: Net1 CEO on Sassa cards, job cuts and post-Sassa future

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