{"id":44668,"date":"2013-08-23T10:03:06","date_gmt":"2013-08-23T08:03:06","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=44668"},"modified":"2013-08-23T10:05:15","modified_gmt":"2013-08-23T08:05:15","slug":"net1-boosted-by-sassa-transactions","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/it-services\/44668\/net1-boosted-by-sassa-transactions\/","title":{"rendered":"Net1 boosted by Sassa transactions"},"content":{"rendered":"

Net1 UEPS Technologies<\/a>\u00a0has on Friday (23 August) reported a 22% rise in revenue to $118 million in constant currency for the quarter ended June 2013.<\/p>\n

It said that the bulk enrollment in relation to its\u00a0R10 billion contract with the\u00a0SA Social Security Agency (Sassa<\/a>) was\u00a0substantially completed during the reporting period, with 22 million registrations and 9.5 million cards issued as of June 30, 2013.<\/p>\n

Net1 reported fundamental earnings per share of $0.28, up 22% in constant currency, which also included $9 million of implementation and smart card costs.<\/p>\n

Net1 is a provider of alternative payment systems that leverage its universal electronic payment system, or UEPS. The group has a\u00a0primary listing on the Nasdaq and a secondary listing on the JSE.<\/p>\n

Net1 said its\u00a0contract to distribute social welfare grants to ten million South Africans\u00a0every month, for a period of five years, remains in full force and effect, through its\u00a0subsidiary Cash Paymaster Services (CPS).<\/p>\n

The group has been in a long running dispute with rival firm\u00a0AllPay, after the latter Absa\u00a0company\u00a0voiced its concerns about the tender process.<\/p>\n

However, at the end of March 2013, Net1 said\u00a0that a full bench of the South African Supreme Court of\u00a0Appeal unanimously ruled that the tender process followed by Sassa\u00a0in awarding a contract to CPS\u00a0was\u00a0valid and legal.<\/p>\n

“I am very pleased to report that we have completed our bulk enrollment on time despite higher than anticipated volumes,”\u00a0said Dr. Serge Belamant, chairman and CEO\u00a0of Net1.<\/p>\n

“Net1 is now ready to execute on its strategic plans and has\u00a0commenced with the deployment of both our financial and mobile services, and the early results look extremely impressive,”\u00a0Belamant said.<\/p>\n

Herman Kotz\u00e9, CFO of Net1 said:\u00a0“Our one-time implementation costs are now effectively behind us and we therefore expect to demonstrate a marked\u00a0improvement in profitability during fiscal 2014.”<\/p>\n

“For fiscal 2014, we\u00a0expect fundamental earnings per share of at least $1.50, assuming a constant currency base of ZAR 8.71\/$1 and a share count\u00a0of approximately 45.7 million shares.”<\/p>\n

He pointed out that the group’s guidance also assumed the lost revenue and operating income from the roughly\u00a0370,000 beneficiaries on Sassa’s database who have not re-registered and whose grants will likely be cancelled in\u00a0September 2013.<\/p>\n

Net1 noted that, having substantially concluded bulk enrollment in fiscal 2013, its temporary employee headcount, which\u00a0peaked at approximately 5,500 employees for most of fiscal 2013, has since declined to 1,392 at June 30, 2013.<\/p>\n

During fiscal 2013, Net1 said it incurred direct\u00a0implementation expenses of approximately $56.2 million (ZAR 488.3 million), including staff, travel, temporary\u00a0infrastructure hire, fixed premises hire for enrollment and stationery costs.<\/p>\n

More on Net1<\/strong><\/h3>\n

Hawks drops Net1 investigation: report<\/strong><\/a><\/p>\n

\n

Absa closing social grants company AllPay?<\/strong><\/a><\/p>\n

Absa\u2019s Allpay heads to the constitutional court<\/a><\/strong><\/p>\n

Absa, Net1 battle isn\u2019t over<\/strong><\/a><\/p>\n

Net1 wins supreme court case over Absa<\/a><\/strong><\/p>\n

Court grants leave to appeal in Sassa case<\/strong><\/a><\/p>\n

Net1 set for legal action against AllPay<\/a><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Net1 UEPS Technologies has reported a 22% rise in revenue to $118 million in constant currency for the quarter ended June 2013.<\/p>\n","protected":false},"author":10,"featured_media":19012,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[29,4104,26,4774,785],"class_list":["post-44668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-it-services","tag-absa","tag-allpay","tag-headline","tag-net1-ueps-technologies","tag-sassa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/44668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=44668"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/44668\/revisions"}],"predecessor-version":[{"id":44671,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/44668\/revisions\/44671"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/19012"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=44668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=44668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=44668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}