Universal electronic payment system provider Net1 still expects to grow earnings per share by 20% during the financial year.
This morning, the company published its second quarter results, which show revenue growth of 20% in US dollars, to $73.9 million, in the three months to December. During the first six months of the financial year, revenue grew 8% in dollars, to $139.4 million. However, revenue in rand terms was down during both periods.
Fundamental earnings per share for the first half of the year were $0.96, compared to $0.75 for the same period a year ago, which is an increase of 28% in US dollars and 12% in constant currency.
Serge Belamant, chairman and CEO, says although the company faced “difficult year-over-year comparisons from our hardware, software and related technology sales segment, and last year's large foreign exchange gain, we continue to grow both revenue and profitability in our core transaction-based businesses”.
The company is “an integral distributor of welfare grants for the South African government”, he adds, and - in the next few years - will continue to take the technology into more countries.
CFO Herman Kotze adds: “Our growth during [the second quarter of 2010] was driven by EasyPay, Iraq and the further penetration of our merchant-acquiring platform.
“We remain comfortable with our guidance of at least 20% constant currency fundamental earnings per share growth for fiscal year 2010,” says Kotze.
Net1's share price was unmoved by the news and remained at R150 this morning.
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