by SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News) – THE global chip shortage continues impacting on local technology companies.
Among those whose revenues have been hit are the Johannesburg Stock Exchange-listed Net 1 UEPS Technologies.
The provider of payment solutions, transaction processing services and financial technology across multiple industries, disclosed its revenues decreased 4 percent due to lower hardware sales as a result of the global chip shortage and fewer prepaid airtime sales.
Net 1 UEPS announced the setback as it released second quarter 2022 and second quarter 2021 results on Thursday.
Revenue of $31,1 million, was a decrease of the above-mentioned 4 percent from Q2 2021.
Net 1 UEPS announced a 38 percent recovery in operating loss to $9,4 million in Q2 2022, reflecting the direct cost reductions in its Consumer business.
It disclosed a 42 percent improvement in adjusted EBITDA loss to $7,1 million, underpinned by the turnaround in the same segment.
Net 1 UEPS expensed $1,5 million of transaction costs related to the Connect Group acquisition.
The dollar was 1 percent stronger against the Ran during Q2 2022, which impacted the reported results.
Commonly cited causes for the global chip shortage include the COVID-19 pandemic, the China–United States trade war and various severe weather incidents.
– CAJ News