Net 1 reschedules Q4 results due to Cell C deal delay

(iStock)
(iStock)

Net 1 UEPS Technologies [JSE:NT1] announced on Tuesday that it is rescheduling the release of its audited results in order to allow more time for clarification on various developments in respect of proposed transactions at Cell C.

This is because this information is expected to significantly impact the carrying value of its Cell C investment as of June 30, 2019.

In South Africa, Net1 provides low-cost financial inclusion products, including banking, lending and insurance and through DNI is a distributor of mobile subscriber starter packs for Cell C.

Net1 said in a statement that it will now release fourth quarter and year end 2019 results after the market close on September 26, 2019.

Its preliminary and unaudited financial and operating highlights for the fourth quarter of 2019 include that consolidated revenue is expected to be approximately $70m. In the third quarter of 2019, the company reported revenue of $87m, which included a $18m contribution from DNI.

The company expects an adjusted EBITDA loss for the fourth quarter 2019. South African operations are expected to achieve EBITDA breakeven in the month of July 2019.

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