Net1 woes pile up as grants shake-up triggers revenue drop
Firm continues to grapple with the fallout from changes to the grant distribution system at Sassa
Financial services and technology group Net1 said on Friday the loss of its social grants contract as well as a migration of grants accounts to the SA Post Office had resulted in a 36% decline in revenue for its first-quarter to end-September.
Revenue fell 36% to $80.7m (R1.2bn), with the company reporting an operating loss of $2.7m, as it continues to grapple with the fallout from changes to the grant distribution system at the SA Social Security Agency (Sassa).
The JSE- and Nasdaq-listed technology group had fought lengthy and costly battles in various courts about the grants system, with its subsidiary, Cash Paymaster Services, ultimately losing a R1.3bn lawsuit against Sassa in July 2019. It has also been ordered to pay back R317m to the agency...