Net 1 Reports Second Quarter 2021 Results Nasdaq:UEPS
JOHANNESBURG, South Africa, Feb. 04, 2021 (GLOBE NEWSWIRE) — Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today released results for the second fiscal quarter ended December 31, 2020.
Q2 2021 Highlights and Recent Developments:
- Net increase of 44,000 EasyPay Everywhere (EPE) account holders, the first quarterly increase in eight quarters;
- IPG exit process at an advanced stage, which should result in reduced operating losses and cash burn going forward;
- Non-cash increase of $15.1 million, before tax effect, in the fair value of investment in MobiKwik;
- Sale of entire interest in Bank Frick after quarter-end;
- At December 31, 2020, unrestricted cash of $206 million and no debt;
- Revenue of $32.3 million, a constant currency decrease of 12% from Q2 2020, and a decrease of 15% from Q1 2021;
- Operating loss of $(15.2) million;
- GAAP EPS of $(0.08) and Fundamental EPS of $(0.24); and
- Adjusted EBITDA loss of $(12.8) million, a sequential increase from a loss of $(10.8) million in Q1 2021.
“We have made strong operational progress this quarter, which should result in improved financial performance going forward. In South Africa, our consumer bank account offering, EasyPay Everywhere, added approximately 44,000 net accounts during the quarter – the first quarterly increase in eight quarters,” said Alex Smith, Net1’s interim CEO and CFO. “In addition, we saw another sequential increase in the utilization of our ATM infrastructure. Internationally, we made significant progress on the exit from IPG. While once-off closure costs from IPG have impacted this quarter’s results, the operational losses and cash burn should reduce materially going forward due to the decisive actions taken this quarter. We are actively working to resolve our Investment Company Act status in order for us to effect a partial return of capital as soon as we are able to do so. We are fully focused on executing our strategy to grow Net1 into the leading fintech business in South Africa.”
Summary Financial Metrics
| Q2 2021 | Q2 2020 | Q1 2021 | Q2 ’21 vs | Q2 ’21 vs | Q2 ’21 vs | Q2 ’21 vs | |||||||||||||||
| (as restated)(1) | (as restated)(1) | Q2 ’20 | Q1 ’21 | Q2 ’20 | Q1 ’21 | ||||||||||||||||
| (All figures in USD ‘000s except per share data) | USD ‘000’s | ||||||||||||||||||||
| (except per share data) | % change in USD | % change in ZAR | |||||||||||||||||||
| Revenue | 32,305 | 38,918 | 35,136 | (17 | %) | (8 | %) | (12 | %) | (15 | %) | ||||||||||
| GAAP operating loss | (15,205 | ) | (10,420 | ) | (10,775 | ) | 46 | % | 41 | % | 55 | % | 30 | % | |||||||
| Adjusted EBITDA (loss)(2) | (12,792 | ) | (7,476 | ) | (9,822 | ) | 71 | % | 30 | % | 81 | % | 20 | % | |||||||
| GAAP (loss) earnings per share ($) | (0.08 | ) | – | (0.51 | ) | nm | (84 | %) | nm | (86 | %) | ||||||||||
| Continuing | (0.08 | ) | (0.05 | ) | (0.51 | ) | 60 | % | (84 | %) | 69 | % | (86 | %) | |||||||
| Discontinued | – | 0.05 | – | nm | nm | nm | nm | ||||||||||||||
| Fundamental loss per share ($)(2) | (0.24 | ) | (0.10 | ) | (0.23 | ) | 140 | % | 4 | % | 154 | % | (4 | %) | |||||||
| Fully-diluted shares outstanding (‘000’s) | 56,641 | 56,568 | 57,119 | 0 | % | (1 | %) | nm | nm | ||||||||||||
| Average period USD/ ZAR exchange rate | 15.47 | 14.60 | 16.77 | 6 | % | -8 | % | nm | nm | ||||||||||||
| F2021 | F2020 | F2021 vs | F2021 vs | |||||||||
| (as restated)(1) | F2020 | F2020 | ||||||||||
| (All figures in USD ‘000s except per share data) | USD ‘000’s (except per share data) | % change in USD | % change in ZAR | |||||||||
| Revenue | 67,441 | 85,134 | (21 | %) | (9 | %) | ||||||
| GAAP operating loss | (25,980 | ) | (16,856 | ) | 54 | % | 76 | % | ||||
| Adjusted EBITDA (loss)(2) | (22,614 | ) | (11,782 | ) | 92 | % | 119 | % | ||||
| GAAP (loss) earnings per share ($) | (0.59 | ) | (0.08 | ) | 638 | % | 743 | % | ||||
| Continuing | (0.59 | ) | (0.18 | ) | 228 | % | 275 | % | ||||
| Discontinued | – | 0.10 | nm | nm | ||||||||
| Fundamental loss per share ($)(2) | (0.47 | ) | (0.12 | ) | 292 | % | 348 | % | ||||
| Fully-diluted shares outstanding (‘000’s) | 56,880 | 56,568 | 1 | % | nm | |||||||
| Average period… | ||||||||||||
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