UEPS Stock Surged 4.73% Pre-Market, Here’s Why   

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Net 1 UEPS Technologies, Inc. (UEPS) is up 4.73% in the pre-market trading session at the price of $4.65 after the company announced its fourth-quarter and year 2021 financial results. UEPS is a financial technology company. It employs proprietary banking and payment technology to provide financial inclusion through low-cost financial and value-added services.  

UEPS Announced Fourth Quarter and Year-End 2021 Financial Results 

On 13th September 2021, UEPS released results for the fourth quarter and year ended 30th June 2021. Revenue was $34.5 million in the fourth quarter of 2021. It represents a gain of 20% from the third quarter of 2021. The operating loss was $(13.6) million in the fourth quarter of 2021. For the fourth quarter of 2021, GAAP EPS was $0.03 and the Fundamental EPS loss was $(0.18). Adjusted EBITDA loss was $8.2 million in the fourth quarter of 2021. It represents an improvement of $4.6 million from the third quarter of 2021. 

UEPS reported revenue of 130.8 million for the year ended 30th June 2021. The total revenue was 144 million in the year ended 30th June 2020. GAAP operating loss was 53.8 million in fiscal 2021, compared to 44.2 million in the previous year. The fundamental loss per share was $(0.87) in fiscal 2021. For fiscal 2020, the loss per share was $(1.02). 

CEO of UEPS, Chris Meyer, remarked that fiscal 2021 was a challenging year for the global economy, but it remained profitable for the company. Their purpose is to improve people’s lives by providing financial inclusion to South Africa’s underserved consumers. They support small businesses to reach the financial services to prosper. They believe they have the right team, strategy, technology, and operations to effectively serve the large addressable market in South Africa, he added. 

Appointment of Mr. Kuben Pillay and Ms. Nonkululeko N. Gobodo 

On 18th August 2021, UEPS published the appointment of Mr. Kuben Pillay as Chairman of the Board of Directors. He took this role after the demise of Mr. Jabu Mabuza from Covid-19 earlier this year. Previously, Mr. Pillay served on several South African public and private corporate boards. He remained the Chairman of Sabvest Limited and the Lead Independent Director of the OUTsurance group of companies. Mr. Pillay remarked that he is pleased by this appointment and will resume the strong renewal path started by Jabu Mabuza. He will bring distinct localized management and board experience in the governance, regulatory, digital, transaction, and transformation sectors.  

UEPS also appointed Ms. Nonkululeko N. Gobodo as an independent non-employee director to its Board. Ms. Gobodo will chair the company’s Social and Ethics Committee. He will also be a member of its Audit Committee. Ms. Gobodo has over 35 years of executive experience in the field of accounting and auditing. 

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