Net 1 UEPS (UEPS) is a South African financial technology company focused on payment solutions, telecommunication services, micro-lending, life insurance, and cryptocurrency ventures. The company owns a variety of minority and majority stakes in companies with exposure in diverse sectors, and hence more or less resembles a holding company rather than a traditional fintech service provider.
Last year, the South African Social Security Agency (SAASA) terminated its agreement with UEPS to distribute welfare payments to over 17 million account holders. This resulted in double-digit Y/Y % declines for the company's revenues, and over triple-digit Y/Y% declines for the company's adj. EBITDA and adj. net income in its Q22019 report. Moreover, the rest of the company's aggregate revenue segments remains deeply convoluted with little information available on the source of these revenue streams.