Net 1’s profit gains 35%
Net 1 boosted its bottom line in the year to June as its new offerings continue to gain momentum.
|||Johannesburg - Net 1 boosted its bottom line in the year to June as its new offerings continue to gain momentum.
In the year to June, the company saw overall revenue gain 8 percent to $626 million, while net income lept 35 percent to $94.7 million. Fundemental earnings per share gained 6 percent to 2.32, it said.
Chairman and CEO Serge Belamant declared himself “thrilled” with the performance. He attributes the company’s gains to its ability to “execute on our strategy extremely well”.
Belamant added its recent new initiative, Zazoo, is gaining momentum and has inked deals with Uber, Microsoft, and BitX.
Zazoo, which was unveiled in February, is an aggregation of various Net 1 technology firms and aprovides payment solutions and transaction processing services. It operates along five primary business lines: mobile banking, mobile network operator solutions, third-party payments, cryptography, and chip.
“Zazoo’s pipeline has numerous other deals and it is well positioned to grow exponentially over a short period of time. We also believe that our entry into Nigeria via our investment in One Credit provides us the opportunity to deploy our entire solution in this vast, under-penetrated and profitable economy,” said Belamant.
CFO Herman Kotzé adds the company’s financial and operating performance, including the increased investment in its newer growth and international initiatives, continues to track the strategic developments in its business.
“We expect to sustain the momentum in our business and continue our product, client and geographic diversification, and for fiscal 2016 anticipate our fundamental earnings per share to be at least $2.57, assuming an updated constant currency base of ZAR11.43/$1 and a share count of 46.7 million shares.”
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