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Short-Form Announcement: Net 1 files 2019 Form 10-K with SEC and cures Nasdaq delinquency
Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
LEI: 529900J4IZMWV4RDEB07
ISIN: US64107N2062
(“Net1”)
Short-Form Announcement: Net 1 files 2019 Form 10-K with SEC and cures Nasdaq delinquency
JOHANNESBURG, October 28, 2019 – Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today announced that it has filed
its Annual Report on Form 10-K with the United States Securities and Exchange Commission for the year ended June 30, 2019. Filing
of the Form 10-K cures the Nasdaq delinquency reported on October 3, 2019. We do not need to file a plan of compliance with Nasdaq
and believe that we are now in compliance with Nasdaq’s continued listing requirements.
Final results amended as a result of September 30, 2019 Supreme Court ruling:
Our preliminary results released on September 26, 2019, have been updated for impact of the Supreme Court ruling on September 30,
2019. The Supreme Court ruling declined our subsidiary, Cash Paymaster Services (Pty) Ltd’s (“CPS”), appeal of the refund of ZAR
317.0 million plus interest to the South Africa Social Security Agency (“SASSA”) related to the recovery of additional implementation
costs incurred by CPS during the beneficiary re-registration process in fiscal 2012 and 2013. CPS is liable to repay SASSA ZAR 317.0
million, plus interest from June 2014 to date of payment. As a result, we recorded the liability at June 30, 2019, of $34.0 million (ZAR
479.4 million, translated at exchange rates applicable as of June 30, 2019, comprising a revenue refund of $19.7 million (ZAR 277.6
million), accrued interest of $11.4 million (ZAR 161.0 million), unclaimed indirect taxes of $2.8 million (ZAR 39.4 million) and
estimated costs of $0.1 million (ZAR 1.4 million)).
Below is a summary of changes to our audited consolidated financial statements for Q4 2019 and full year 2019, as a result of the
liability recorded compared with our preliminary results (“Prelim”) reported on September 26, 2019:
Q4 2019 F2019
Final Prelim Mvt Final Prelim Mvt
(All figures in USD ‘000s except per share data)
Revenue 51,472 71,181 (19,709) 360,990 380,699 (19,709)
GAAP operating (loss) income (49,646) (15,607) (34,039) (113,508) (79,469) (34,039)
Adjusted (negative) EBITDA(1) (749) (749) - (12,621) (12,621) -
GAAP net (loss) income (183,694) (149,655) (34,039) (307,618) (273,579) (34,039)
Fundamental (loss) earnings (1) (173,128) (139,089) (34,039) (256,906) (222,867) (34,039)
GAAP (loss) earnings per share ($) (3.23) (2.63) (0.60) (5.42) (4.82) (0.60)
Fundamental (loss) earnings per share ($)(1) (3.05) (2.45) (0.60) (4.53) (3.93) (0.60)
Headline (loss) earnings per share ($)(1) (3.11) (2.51) (0.60) (4.98) (4.38) (0.60)
(1) Adjusted negative EBITDA and fundamental (loss) earnings per share are non-GAAP measures and are described in our full announcement under
“Use of Non-GAAP Measures”. See Attachment B in our full announcement for a reconciliation of GAAP operating (loss) income to negative
EBITDA and Adjusted negative EBITDA, and GAAP net (loss) income to fundamental net (loss) income and (loss) earnings per share. See
Attachment C in our full announcement for a reconciliation of net (loss) income used to calculate (loss) earnings per share basic and diluted and
headline (loss) earnings per share basic and diluted
We reiterate our fiscal 2020 guidance for adjusted EBITDA of at least $16 million using a constant currency base of ZAR 14.27/$1,
driven by growth in South Korea and South Africa, and reduced losses from our IPG business.
Short-form announcement
This short-form announcement is the responsibility of the Net1 Board of Directors (“Board”) and the contents have been approved by
the Board on October 25, 2019. This short-form announcement released on SENS is a summary of the full announcement which has
been published at https://senspdf.jse.co.za/documents/2019/JSE/ISSE/NT1/Q4ResFIN19.pdf and on Net1’s website at
www.net1.com. This short-form announcement does not contain complete or full announcement details. Any investment decision by
investors and/or shareholders should be based on consideration of the full announcement. The short-form announcement has not been
audited or reviewed by Net1’s external auditors. The full announcement is available upon request through enquiries directed to either
Net1’s Group Vice President, Investor Relations at dchopra@net1.com or Net1’s media relations contact at bridget.vonholdt@bm-
africa.com.
About Net1
Net1 is a leading provider of transaction processing services, financial inclusion products and services and secure payment technology.
Net1 operates market-leading payment processors in South Africa and the Republic of Korea. Net1 offers debit, credit and prepaid
processing and issuing services for all major payment networks. In South Africa, Net1 provides innovative low-cost financial inclusion
products, including banking, lending and insurance and through DNI is a leading distributor of mobile subscriber starter packs for Cell
C, a South African mobile network operator. Net1 leverages its strategic equity investments in Finbond and Bank Frick (both regulated
banks), and Cell C to introduce products to new customers and geographies.
Net1 has a primary listing on NASDAQ (NasdaqGS: UEPS) and a secondary listing on the Johannesburg Stock Exchange (JSE: NT1).
Visit www.net1.com for additional information about Net1.
Forward-Looking Statements
This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of
various factors that cause our actual results, levels of activity, performance or achievements to differ materially from those expressed
in such forward-looking statements are included in our filings with the Securities and Exchange Commission. We undertake no
obligation to revise any of these statements to reflect future events.
Investor Relations Contact:
Dhruv Chopra
Group Vice President, Investor Relations
Phone: +1 917-767-6722
Email: dchopra@net1.com
Media Relations Contact:
Bridget von Holdt
Business Director – BCW
Phone: +27-82-610-0650
Email: bridget.vonholdt@bm-africa.com
Johannesburg
October 28, 2019
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 28/10/2019 07:05:00
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