Net1 delays results due to Cell C issues

Net1 UEPS Technologies has postponed the publication of its results for the fourth quarter of 2019 as it waits for further clarification on anticipated transactions at Cell C.

The JSE-listed technology company holds a 15% stake in the mobile network operator and is responsible for the distribution of its starter packs.

In a statement released on Tuesday, Net1 said that information around the proposed transactions “is expected to significantly impact the carrying value of its Cell C investment as of June 30, 2019”.

The delay comes in the wake of an announcement in August by Blue Label Telecoms that it is deferring the posting of its Q4 results to 26 September.

Net1 will also now release its fourth quarter and annual results on the same date.

In July, Cell C CEO Craigie Stevenson revealed that the operator is suffering under a massive burden of R8.9 billion of debt. The operator has extended its roaming agreement with MTN to cut operational costs, and it has also recently shut down its fixed-LTE service.

Further adding to Cell C’s issues is the recent suspension of the linear channels of its video streaming service Black earlier this month.

Now read: MTN Group announces leadership changes

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Net1 delays results due to Cell C issues