Net1 Reports Q2 2022 Results

Highlights:

• Continued momentum in Easy Pay Everywhere (“EPE”), ending the quarter with just under 1.1 million EPE accounts as of December 31, 2021;

• At December 31, 2021, unrestricted cash of $182.4 million;

• Revenue of $31.1 million, a decrease of 4% from Q2 2021;

• 38% recovery in operating loss to $(9.4) million in Q2 2022, reflecting the direct cost reductions in our Consumer business;

• GAAP EPS of $(0.22) and Fundamental EPS of $(0.13); and

• 42% improvement in adjusted EBITDA loss to $(7.1) million, underpinned by the turnaround in our Consumer business.

“I am pleased with the progress we made in Q2, towards our strategic goal of returning our consumer financial services business to breakeven and then profitability as soon as possible. During the quarter we continued to grow active accounts, improved average revenue per customer and delivered on our cost savings initiatives. We have seen this positive momentum translate into a marked improvement in the operational performance of our consumer business compared to Q1.” said Chris Meyer, Group CEO of Net1. “We are looking forward to finalizing the Connect Group acquisition in Q3, which will transform our Merchant business, once all the regulatory approvals are in place. We also made key enhancements to our management team, positioning us with the right leadership to successfully execute our long-term growth strategy and advance our key initiatives. However, we know there is still a lot more work to be done as we continue our journey of building the leading South African FinTech platform for underserved consumers and merchants.”