Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2019 | Feb. 03, 2020 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NET 1 UEPS TECHNOLOGIES INC | |
Entity Central Index Key | 0001041514 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --06-30 | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | UEPS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 56,568,425 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | [1] |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 50,719 | $ 46,065 | |
Restricted cash (Note 10) | 84,360 | 75,446 | |
Accounts receivable, net and other receivables (Note 3) | 68,565 | 72,494 | |
Finance loans receivable, net (Note 3) | 29,117 | 30,631 | |
Inventory (Note 4) | 21,196 | 7,535 | |
Total current assets before settlement assets | 253,957 | 232,171 | |
Settlement assets (Note 5) | 55,401 | 63,479 | |
Total current assets | 309,358 | 295,650 | |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of - December: $121,584 June: $129,185 | 16,450 | 18,554 | |
OPERATING LEASE RIGHT-OF-USE (Note 18) | 7,838 | 0 | |
EQUITY-ACCOUNTED INVESTMENTS (Note 7) | 155,627 | 151,116 | |
GOODWILL (Note 8) | 148,938 | 149,387 | |
INTANGIBLE ASSETS, net (Note 8) | 8,043 | 11,889 | |
DEFERRED INCOME TAXES | 2,112 | 2,151 | |
OTHER LONG-TERM ASSETS, including reinsurance assets (Note 7 and 9) | 41,144 | 44,189 | |
TOTAL ASSETS | 689,510 | 672,936 | |
CURRENT LIABILITIES | |||
Short-term credit facilities for ATM funding (Note 10) | 84,360 | 75,446 | |
Short-term credit facilities (Note 10) | 13,906 | 9,544 | |
Accounts payable | 14,211 | 17,005 | |
Other payables (Note 11) | 69,134 | 66,449 | |
Operating lease right-of-use lease liability - current (Note 18) | 3,534 | 0 | |
Current portion of long-term borrowings (Note 10) | 4,063 | 0 | |
Income taxes payable | 5,043 | 6,223 | |
Total current liabilities before settlement obligations | 194,251 | 174,667 | |
Settlement obligations (Note 5) | 55,402 | 63,479 | |
Total current liabilities | 249,653 | 238,146 | |
DEFERRED INCOME TAXES | 4,503 | 4,682 | |
RIGHT-OF-USE OPERATING LEASE LIABILTY - LONG-TERM (Note 18) | 4,499 | 0 | |
OTHER LONG-TERM LIABILITIES, including insurance policy liabilities (Note 7) | 2,623 | 3,007 | |
TOTAL LIABILITIES | 261,278 | 245,835 | |
REDEEMABLE COMMON STOCK | 107,672 | 107,672 | |
EQUITY | |||
COMMON STOCK (Note 12) Authorized: 200,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury - December: 56,568,425 June: 56,568,425 | 80 | 80 | |
PREFERRED STOCK Authorized shares: 50,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury: December: - June: - | |||
ADDITIONAL PAID-IN-CAPITAL | 277,891 | 276,997 | |
TREASURY SHARES, AT COST: December: 24,891,292 June: 24,891,292 | (286,951) | (286,951) | |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Note 13) | (194,439) | (199,273) | |
RETAINED EARNINGS | 523,979 | 528,576 | |
TOTAL NET1 EQUITY | 320,560 | 319,429 | |
NON-CONTROLLING INTEREST | 0 | 0 | |
TOTAL EQUITY | 320,560 | 319,429 | |
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND SHAREHOLDERS' EQUITY | $ 689,510 | $ 672,936 | |
[1] | Derived from audited financial statements. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 121,584 | $ 129,185 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 56,568,425 | 56,568,425 |
Common stock, shares outstanding | 56,568,425 | 56,568,425 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Treasury shares, shares outstanding | 24,891,292 | 24,891,292 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Consolidated Statements Of Operations [Abstract] | ||||
REVENUE (Note 17) | $ 74,080 | $ 77,442 | $ 154,836 | $ 184,539 |
EXPENSE | ||||
Cost of goods sold, IT processing, servicing and support | 43,160 | 41,231 | 89,954 | 103,335 |
Selling, general and administration | 33,393 | 69,730 | 65,324 | 111,152 |
Depreciation and amortization | 4,381 | 7,191 | 9,146 | 15,048 |
Impairment loss (Note 8) | 0 | 8,191 | 0 | 8,191 |
OPERATING LOSS | (6,854) | (48,901) | (9,588) | (53,187) |
CHANGE IN FAIR VALUE OF EQUITY SECURITIES (Note 6 and 7) | 0 | (15,836) | 0 | (15,836) |
GAIN ON DISPOSAL OF FIHRST (Note 2) | 9,743 | 0 | 9,743 | 0 |
INTEREST INCOME | 1,343 | 2,177 | 1,994 | 3,778 |
INTEREST EXPENSE | 3,221 | 2,563 | 4,576 | 5,121 |
IMPAIRMENT OF CEDAR CELLULAR NOTE (Note 7) | 0 | 2,732 | 0 | 2,732 |
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT) | 1,011 | (67,855) | (2,427) | (73,098) |
INCOME TAX EXPENSE (BENEFIT) (Note 20) | 1,722 | (4,398) | 3,739 | 577 |
NET LOSS BEFORE EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS | (711) | (63,457) | (6,166) | (73,675) |
EARNINGS (LOSS) FROM EQUITY-ACCOUNTED INVESTMENTS (Note 7) | 506 | (1,291) | 1,569 | 184 |
NET LOSS FROM CONTINUING OPERATIONS | (205) | (64,748) | (4,597) | (73,491) |
NET INCOME FROM DISCONTINUED OPERATIONS (Note 22) | 0 | 3,779 | 0 | 7,418 |
NET (LOSS) INCOME | (205) | (60,969) | (4,597) | (66,073) |
LESS (ADD) NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 0 | 2,972 | 0 | 3,067 |
Continuing | 0 | 721 | 0 | (877) |
Discontinued | 0 | 2,251 | 0 | 3,944 |
NET (LOSS) INCOME ATTRIBUTABLE TO NET1 | (205) | (63,941) | (4,597) | (69,140) |
Continuing | (205) | (65,469) | (4,597) | (72,614) |
Discontinued | $ 0 | $ 1,528 | $ 0 | $ 3,474 |
Net (loss) earnings per share, in United States dollars (Note 15): | ||||
Basic (loss) earnings attributable to Net1 shareholders | $ 0 | $ (1.13) | $ (0.08) | $ (1.22) |
Continuing | 0 | (1.16) | (0.08) | (1.28) |
Discontinued | 0 | 0.03 | 0 | 0.06 |
Diluted (loss) earnings attributable to Net1 shareholders | 0 | (1.12) | (0.08) | (1.22) |
Continuing | 0 | (1.15) | (0.08) | (1.28) |
Discontinued | $ 0 | $ 0.03 | $ 0 | $ 0.06 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net loss | $ (205) | $ (60,969) | $ (4,597) | $ (66,073) |
Other comprehensive income (loss), net of taxes | ||||
Movement in foreign currency translation reserve | 19,114 | (10,353) | 1,029 | (23,675) |
Release of foreign currency translation reserve related to disposal of FIHRST | 1,578 | 0 | 1,578 | 0 |
Movement in foreign currency translation reserve related to equity-accounted investments | (491) | 0 | 2,227 | 5,430 |
Total other comprehensive income (loss), net of taxes | 20,201 | (10,353) | 4,834 | (18,245) |
Comprehensive income (loss) | 19,996 | (71,322) | 237 | (84,318) |
(Less) Add comprehensive (gain) loss attributable to non-controlling interest | 0 | (1,363) | 0 | 1,342 |
Comprehensive income (loss) attributable to Net1 | $ 19,996 | $ (72,685) | $ 237 | $ (82,976) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement Of Changes In Equity - USD ($) $ in Thousands | Total | Common And Treasury Stock [Member] | Treasury Stock [Member] | Number Of Shares, Net Of Treasury [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Parent [Member] | Noncontrolling Interest [Member] | ||
Balance, Number of Shares at Jun. 30, 2018 | 81,577,217 | (24,891,292) | 56,685,925 | ||||||||
Balance at Jun. 30, 2018 | $ 736,897 | $ 80 | $ (286,951) | $ 276,201 | $ 836,194 | $ (184,538) | $ 640,986 | $ 95,911 | |||
Redeemable Common Stock, Balance at Jun. 30, 2018 | 107,672 | ||||||||||
Restricted stock granted, shares | 148,000 | 148,000 | |||||||||
Stock-based compensation charge (Note 14) | 1,185 | 1,185 | 1,185 | ||||||||
Stock based-compensation charge related to equity-accounted investment (Note 7) | 77 | 77 | 77 | ||||||||
Dividends paid to non-controlling interest | (2,937) | (2,937) | |||||||||
Net (loss) income | (66,073) | (69,140) | (69,140) | 3,067 | |||||||
Other comprehensive loss (Note 13) | $ (18,245) | (13,836) | (13,836) | (4,409) | |||||||
Balance, Number of Shares at Dec. 31, 2018 | 56,833,925 | 81,725,217 | (24,891,292) | 56,833,925 | |||||||
Balance at Dec. 31, 2018 | $ 650,904 | $ 80 | $ (286,951) | 277,463 | 767,054 | (198,374) | 559,272 | 91,632 | |||
Redeemable Common Stock, Balance at Dec. 31, 2018 | 107,672 | ||||||||||
Balance, Number of Shares at Sep. 30, 2018 | 81,725,217 | (24,891,292) | 56,833,925 | ||||||||
Balance at Sep. 30, 2018 | 722,836 | $ 80 | $ (286,951) | 276,865 | 830,995 | (189,630) | 631,359 | 91,477 | |||
Redeemable Common Stock, Balance at Sep. 30, 2018 | 107,672 | ||||||||||
Stock-based compensation charge (Note 14) | 598 | 598 | 598 | ||||||||
Dividends paid to non-controlling interest | (1,208) | (1,208) | |||||||||
Net (loss) income | (60,969) | (63,941) | (63,941) | 2,972 | |||||||
Other comprehensive loss (Note 13) | $ (10,353) | (8,744) | (8,744) | (1,609) | |||||||
Balance, Number of Shares at Dec. 31, 2018 | 56,833,925 | 81,725,217 | (24,891,292) | 56,833,925 | |||||||
Balance at Dec. 31, 2018 | $ 650,904 | $ 80 | $ (286,951) | 277,463 | 767,054 | (198,374) | 559,272 | 91,632 | |||
Redeemable Common Stock, Balance at Dec. 31, 2018 | 107,672 | ||||||||||
Balance, Number of Shares at Jun. 30, 2019 | 81,459,717 | (24,891,292) | 56,568,425 | ||||||||
Balance at Jun. 30, 2019 | 319,429 | [1] | $ 80 | $ (286,951) | 276,997 | 528,576 | (199,273) | 319,429 | 0 | ||
Redeemable Common Stock, Balance at Jun. 30, 2019 | [1] | 107,672 | |||||||||
Stock-based compensation charge (Note 14) | 823 | 823 | 823 | ||||||||
Stock based-compensation charge related to equity-accounted investment (Note 7) | 71 | 71 | 71 | ||||||||
Net (loss) income | (4,597) | (4,597) | (4,597) | ||||||||
Other comprehensive loss (Note 13) | $ 4,834 | 4,834 | 4,834 | ||||||||
Balance, Number of Shares at Dec. 31, 2019 | 56,568,425 | 81,459,717 | (24,891,292) | 56,568,425 | |||||||
Balance at Dec. 31, 2019 | $ 320,560 | $ 80 | $ (286,951) | 277,891 | 523,979 | (194,439) | 320,560 | 0 | |||
Redeemable Common Stock, Balance at Dec. 31, 2019 | 107,672 | ||||||||||
Balance, Number of Shares at Sep. 30, 2019 | 81,459,717 | (24,891,292) | 56,568,425 | ||||||||
Balance at Sep. 30, 2019 | 300,128 | $ 80 | $ (286,951) | 277,455 | 524,184 | (214,640) | 300,128 | 0 | |||
Redeemable Common Stock, Balance at Sep. 30, 2019 | 107,672 | ||||||||||
Stock-based compensation charge (Note 14) | 436 | 436 | 436 | ||||||||
Net (loss) income | (205) | (205) | (205) | ||||||||
Other comprehensive loss (Note 13) | $ 20,201 | 20,201 | 20,201 | 0 | |||||||
Balance, Number of Shares at Dec. 31, 2019 | 56,568,425 | 81,459,717 | (24,891,292) | 56,568,425 | |||||||
Balance at Dec. 31, 2019 | $ 320,560 | $ 80 | $ (286,951) | $ 277,891 | $ 523,979 | $ (194,439) | $ 320,560 | $ 0 | |||
Redeemable Common Stock, Balance at Dec. 31, 2019 | $ 107,672 | ||||||||||
[1] | Derived from audited financial statements. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flows from operating activities | |||||
Net loss | $ (205) | $ (60,969) | $ (4,597) | $ (66,073) | |
Depreciation and amortization | 4,381 | 9,853 | 9,146 | 20,647 | |
Impairment loss (Note 8) | 0 | 8,191 | 0 | 8,191 | |
Movement in allowance for doubtful accounts receivable | (429) | 21,368 | 83 | 23,958 | |
(Earnings) loss from equity-accounted investments (Note 7) | (506) | 1,247 | (1,569) | (126) | |
Movement in allowance for doubtful loans | 620 | 0 | 620 | 0 | |
Interest on Cedar Cellular note (Note 7) | 0 | (1,216) | 0 | (1,372) | |
Impairment of Cedar Cellular note (Note 7) | 0 | 2,732 | 0 | 2,732 | |
Change in fair value of equity securities (Note 6 and 7) | 0 | 15,836 | 0 | 15,836 | |
Fair value adjustment related to financial liabilities | 147 | 83 | 234 | 1 | |
Interest payable | 526 | 131 | 1,158 | 241 | |
Profit on disposal of property, plant and equipment | (49) | (139) | (203) | (266) | |
Stock-based compensation charge (Note 14) | 436 | 598 | 823 | 1,185 | |
Dividends received from equity accounted investments | 380 | 454 | 1,448 | 454 | |
Decrease in accounts receivable, pre-funded social welfare grants receivable and finance loans receivable | 8,767 | 18,753 | 3,101 | 28,755 | |
(Increase) Decrease in inventory | (682) | (24) | (12,995) | 2,161 | |
Increase (Decrease) in accounts payable and other payables | 3,132 | (11,759) | (264) | (19,535) | |
(Decrease) increase in taxes payable | (2,244) | (7,007) | (956) | 1,347 | |
Decrease in deferred taxes | (117) | (3,436) | (205) | (7,070) | |
Facility fee amortized | 0 | 68 | 0 | 155 | |
Gain on disposal of FIHRST (Note 2) | (9,743) | 0 | (9,743) | 0 | |
Net cash provided by (used in) operating activities | 4,414 | (5,236) | (13,919) | 11,221 | |
Cash flows from investing activities | |||||
Capital expenditures | (827) | (2,547) | (3,451) | (5,665) | |
Proceeds from disposal of property, plant and equipment | 90 | 212 | 303 | 486 | |
Proceeds from disposal of FIHRST (Note 2) | 10,895 | 0 | 10,895 | 0 | |
Investment in equity of equity-accounted investments (Note 7) | 0 | (2,500) | (1,250) | (2,500) | |
Loan to equity-accounted investment (Noe 7) | (612) | 0 | (612) | 0 | |
Repayment of loans by equity-accounted investments | 0 | 0 | 4,268 | 0 | |
Acquisition of intangible assets | 0 | (1,384) | 0 | (1,384) | |
Investment in MobiKwik | 0 | (1,056) | 0 | (1,056) | |
Return on investment | 0 | 0 | 0 | 284 | |
Net change in settlement assets | 3,371 | 2,031 | (10,138) | 77,962 | |
Net cash provided by (used in) investing activities | 12,917 | (5,244) | 15 | 68,127 | |
Cash flows from financing activities | |||||
Proceeds from bank overdraft (Note 10) | 207,876 | 221,582 | 391,550 | 306,237 | |
Repayment of bank overdraft (Note 10) | (193,725) | (245,726) | (378,554) | (245,726) | |
Long-term borrowings utilized (Note 10) | 0 | 3,203 | 14,798 | 11,004 | |
Repayment of long-term borrowings (Note 10) | (11,313) | (13,551) | (11,313) | (23,811) | |
Guarantee fee | 0 | (258) | (148) | (394) | |
Finance lease capital repayments | (26) | 0 | (52) | 0 | |
Dividends paid to non-controlling interest | 0 | (1,208) | 0 | (2,937) | |
Net change in settlement obligations | (3,371) | (2,031) | 10,138 | (77,962) | |
Net cash (used in) provided by financing activities | (559) | (37,989) | 26,419 | (33,589) | |
Effect of exchange rate changes on cash | 7,508 | (1,823) | 1,053 | (2,772) | |
Net increase (decrease) in cash and cash equivalents | 24,280 | (50,292) | 13,568 | 42,987 | |
Cash and cash equivalents - beinning of period | 110,799 | 183,333 | 121,511 | 90,054 | |
Cash and cash equivalents - end of period | [1] | $ 135,079 | $ 133,041 | $ 135,079 | $ 133,041 |
[1] | Cash, cash equivalents and restricted cash as of December 31, 2019, includes restricted cash of approximately $84.4 million related to cash withdrawn from the Company’s various debt facilities to fund ATMs. This cash may only be used to fund ATMs and is considered restricted as to use and therefore is classified as restricted cash. Refer to Note 10 for additional information regarding the Company’s facilities. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | |
Restricted cash | $ 84,360 | $ 75,446 | [1] |
[1] | Derived from audited financial statements. |
Basis Of Presentation And Summa
Basis Of Presentation And Summary Of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2019 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation And Summary Of Significant Accounting Policies | 1 . Basis of Presentation and Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements include all majority-owned subsidiaries over which the Company exercises control and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission for Quarterly Reports on Form 10-Q an d include all of the information and disclosures required for interim financial reporting. The results of operations for the three and six months ended December 31, 2019 and 2018 , are not necessarily indicative of the results for the full yea r. The Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the financial statements, accounting policies and financial notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal re curring adjustments), which are necessary for a fair representation of financial results for the interim periods presented. References to the “Company” refer to Net1 and its consolidated subsidiaries, collectively, unless the context otherwise requires. References to “Net1” are references solely to Net 1 UEPS Technologies, Inc. Consideration of going concern Accounting guidance requires the Company’s management to assess whether there are conditions or events, considered in the aggregate, that raise su bstantial doubt about the Company’s ability to continue as a going concern within one year after its un audited condensed consolidated financial statements are issued. The Company’s management has identified certain conditions or events, which, considered i n the aggregate, could raise substantial doubt about the Company’s ability to continue as a going concern including the risk that the Company will be unable to: deli ver all or a substantial part of the financial results forecast in its fiscal 2020 budget; retain its existing borrowings and facilities, as described in Note 10 , or obtain additional borrowings and facilities on commercially reasonable terms; arrive at a commercial settlement with SASSA, given the September 30, 2019, Supreme Court of Appeal ruling regarding the repayment of the additional implementation costs received to SASSA (refer Note 11 ) and the ongoing dispute the Company has with SASSA over fees due for the six-month contract extension period in accordance with National Treasury’s recommendation; dispose of all or a portion of its remaining 30% interest in DNI-4PL Contracts Proprietary Limited (“DNI”) . DNI’s operations are also si gnificantly dependent on Cell C because it is the largest distributor of Cell C starter packs in South Africa. Therefore, the inability of Cell C to continue to operate through the next 12 months could also have an adverse impact on DNI’s operations; or di spose of additional investments in order to realize sufficient cash flows. The Company’s management has implemented a number of plans to alleviate the substantial doubt about the Company’s ability to continue as a going concern. These plans include dispos ing of its Korean business unit, KSNET, as announced in its press release of January 27, 2020, certain non-core assets ( refer to Note 3 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2019, for additional information regarding a call option granted to DNI ) , and extending its existing borrowings used to fund its ATMs through September 2020. Provided the KSNET disposal closes, as expected, in March 2020, this is expected to remo ve the substantial doubt about the Company’s ability to continue as a going concern. In addition, the Company’s management believes it has a number of mitigating actions it can pursue, including (i) limiting the expansion of its microlending finance loan s receivable book in South Africa; (ii) implementing further cost cutting measures; (iii) commencing additional asset realizations; (iv) managing its capital expenditures; and (v) accessing alternative sources of capital (including through the issuance of additional shares of its common stock), in order to generate additional liquidity. The Company’s management believes that these plans and mitigating actions alleviate the substantial doubt referred to above and therefore have concluded that the Company rem ains a going concern. 1 . Basis of Presentation and Summary of Significant Accounting Policies (continued) Recent accounting pronouncements adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance regarding Leases . The guidance increases transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. The amendments to current lease guidance include the recognition of assets and liabilities by lessees for those leases currently classified as operating leases. The guidance also requires disclosures to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Th is guidance was effective for the Company beginning July 1, 2019. Refer to Note 18 for the impact of the adoption of this guidance on our condensed consolidated financial statements. 1 . Basis of Presentation and Summary of Significant Accounting Policies (continued) Recent accounting pronouncements not yet adopted as of December 31, 2019 In June 2016, the FASB issued guidance regarding Measurement of Credit Losses on Financial Instruments . The guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires cons ideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, an entity is required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amor tized cost basis of the securities. This guidance is effective for the Company beginning July 1, 2020. Early adoption is permitted beginning July 1, 2019. The Company is currently assessing the impact of this guidance on its financial statements and relate d disclosures. In August 2018, the FASB issued guidance regarding Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement. The guidance modifies the disclosure requirements related to fair value measurement. This guidance i s effective for the Company beginning July 1, 2020. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statements disclosure. |
Disposal Of Controlling Interes
Disposal Of Controlling Interest In FIHRST And KSNET | 6 Months Ended |
Dec. 31, 2019 | |
Disposal Of Controlling Interest In FIHRST And KSNET [Abstract] | |
Disposal Of Controlling Interest In FIHRST And KSNET | 2 . Disposal of controlling interest in FIHRST and KSNET December 2019 disposal of FIHRST In November 2019, the Company through its wholly owned subsidiary, Net1 Applied Technologies South Africa Proprietary Limited (“Net1 SA”), entered into an agreement with Transaction Capital Payment Solutions Proprietary Limited, or its nominee, a limited liab ility private company duly incorporated in the Republic of South Africa, pursuant to which Net1 SA agreed to sell its entire shareholding in Net1 FIHRST Holdings Proprietary Limited (“FIHRST”) for $ 11,7 million (ZAR 172,2 million). The transaction closed in December 2019. FIHRST was deconsolidated following the closing of the transaction. Net1 SA was obliged to utilize the full purchase price received from the sale of FIHRST to partially settle its obligations under its lending arra ngements and applied the proceeds received against its outstanding borrowings – refer to Note 10 . The table below presents the impact of the deconsolidation of FIHRST and the calculation of the net gain recognized on deconsolidation: Total Fair value of consideration received $ 11 749 Less: carrying value of FIHRST, comprising 1 870 Cash and cash equivalents 854 Accounts receivable, net 367 Property, plant and equipment, net 64 Goodwill (Note 8) 599 Intangible assets, net 30 Deferred income taxes assets 42 Accounts payable (7) Other payables (1 437) Income taxes payable (220) Released from accumulated other comprehensive income – foreign currency translation reserve (Note 13) 1 578 Settlement assets 17 406 Settlement liabilities (17 406) Gain recognized on disposal, before tax 9 879 Taxes related to gain recognized on disposal, comprising: - Capital gains tax 2 418 Release of valuation allowance related to capital gains tax previously unutilized (1) (2 418) Transaction costs 136 Gain recognized on disposal, after tax $ 9 743 (1) Net1 SA recorded a valuation allowance related to capital losses previously generated but not utilized. A portion of these unutilized capital losses w as utilized as a result of the disposal of FIHRST and , therefore , the equivalent portion of the valuation allowance created was released. Pro forma results of operations related to the FIHRST disposal have not been presented because the effect of the dispos al was not material to the Company. Disposal of KSNET On January 23, 2020, the Company, through its wholly owned subsidiary Net1 Applied Technologies Netherlands B.V. (“Net1 BV”), a limited liability private company duly incorporated in The Netherlands, entered into an agreement with PayletterHoldings LLC, a limited liability private company duly incorporated in the Republic of Korea, in terms of which Net1 BV agreed to sell its entire shareholding in Net1 Applied Technologies Korea Limited, a limited liability private company incorporated in the Republic of Korea and the sole shareholder of KSNET, Inc. for $237.2 million. |
Accounts Receivable, Net And Ot
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net | 6 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net [Abstract] | |
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net | 3 . Accounts receivable, net and other receivables and finance loans receivable, net Accounts receivable, net and other receivables The Company’s accounts receivable, net, and other receivables as of December 31, 2019 , and June 30, 2019 , is presented in the table below: December 31, June 30, 2019 2019 Accounts receivable, trade, net $ 26 568 $ 25 136 Accounts receivable, trade, gross 27 312 26 377 Allowance for doubtful accounts receivable, end of period 744 1 241 Beginning of period 1 241 1 101 Reversed to statement of operations (535) (24) Charged to statement of operations 108 3 296 Utilized (58) (3 059) Deconsolidated - (38) Foreign currency adjustment (12) (35) Current portion of cash payments to agents in South Korea that are amortized over the contract period 11 927 15 543 Cash payments to agents in South Korea that are amortized over the contract period 18 457 25 107 Less: cash payments to agents in South Korea that are amortized over the contract period included in other long-term assets (Note 7) 6 530 9 564 Loans provided to Carbon 3 000 3 000 Loan provided to DNI - 4 260 Other receivables 27 070 24 555 Total accounts receivable, net $ 68 565 $ 72 494 3 . Accounts receivable, net and other receivables and finance loans receivable, net ( continued) The loan provided to DNI was repaid in full in July 2019. Other receivables include prepayments, deposits and other receivables. Finance loans receivable, net The Company’s finance loans receivable, net, as of December 31, 2019 , and June 30, 2019 , is presented in the table below: December 31, June 30, 2019 2019 Microlending finance loans receivable, net $ 14 504 $ 20 981 Microlending finance loans receivable, gross 17 091 24 180 Allowance for doubtful finance loans receivable, end of period 2 587 3 199 Beginning of period 3 199 4 239 Reversed to statement of operations (601) - Charged to statement of operations 1 081 28 802 Utilized (1 085) (29 721) Foreign currency adjustment (7) (121) Working capital finance loans receivable, gross 14 613 9 650 Working capital finance loans receivable, gross 20 736 15 742 Allowance for doubtful finance loans receivable, end of period 6 123 6 092 Beginning of period 6 092 12 164 Charged to statement of operations 30 712 Utilized - (6 777) Foreign currency adjustment 1 (7) Total accounts receivable, net $ 29 117 $ 30 631 |
Inventory
Inventory | 6 Months Ended |
Dec. 31, 2019 | |
Inventory [Abstract] | |
Inventory | 4 . Inventory The Company’s inventory comprised the following categories as of December 31, 2019 , and June 30, 2019 . December 31, June 30, 2019 2019 Finished goods $ 7 538 $ 7 535 Finished goods subject to sale restrictions 13 658 - $ 21 196 $ 7 535 F inished goods subject to sale restrictions represent airtime inventory purchased and held for sale to customers that may only be sold by the Company after March 31, 2020, and only with the express permission of certain South African banks. As discussed in Note 10 , the Company obtained additional borrowings from its existing bankers to purchase Cell C airtime from an independent distributor of Cell C airtime. The Company did not pay the vendor for the airtime inventory directly because the parties (the vendo r, Cell C, the Company and certain South African banks) agreed that the Company would pay the amount to Cell C to settle amounts payable to Cell C by the vendor in order to inject additional liquidity into Cell C. The Company may not return any unsold air time inventory to either the vendor or Cell C. The Company agreed to mandatory prepayment terms, which require the Company to use the proceeds from the sale of the airtime inventory to settle certain borrowings. For more information about the amended finan ce documents, refer to Note 10 . |
Settlement Assets And Settlemen
Settlement Assets And Settlement Obligations | 6 Months Ended |
Dec. 31, 2019 | |
Settlement Assets And Settlement Obligations [Abstract] | |
Settlement Assets And Settlement Obligations | 5 . Settlement assets and settlement obligations Settlement assets comprise (1) cash received from the South African government that the Company holds pending disbursement to recipient cardholders of social welfare grants (2) cash received from credit card companies (as well as other types of payment services) which have business relationships with merchants selling goods and services via the internet that are the Company’s customers and on whose behalf it processes the transactions between various parties, and (3) cash received from customers on whose behalf the Company processes payroll payments that the Company will disburse to customer employees, payroll-related payees and other payees designated by the customer. Settlement obligations c omprise (1) amounts that the Company is obligated to disburse to recipient cardholders of social welfare grants, (2) amounts that the Company is obligated to disburse to merchants selling goods and services via the internet that are the Company’s customers and on whose behalf it processes the transactions between various parties and settles the funds from the credit card companies to the Company’s merchant customers, and (3) amounts that the Company is obligated to pay to customer employees, payroll-related payees and other payees designated by the customer. The balances at each reporting date may vary widely depending on the timing of the receipts and payments of these assets and obligations. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 6 Months Ended |
Dec. 31, 2019 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | 6 . Fair value of financial instruments Initial recognition and measurement Financial instruments are recognized when the Company becomes a party to the transaction. Initial measurements are at cost, which includes transaction costs. Risk management The Company manages its exposure to currency exchange, translation, interest ra te, customer concentration, credit and equity price and liquidity risks as discussed below. Currency exchange risk The Company is subject to currency exchange risk because it purchases inventories that it is required to settle in other currencies, prima rily the euro and U.S. dollar. The Company has used forward contracts in order to limit its exposure in these transactions to fluctuations in exchange rates between the South African rand (“ZAR”), on the one hand, and the U.S. dollar and the euro, on the o ther hand. Translation risk Translation risk relates to the risk that the Company’s results of operations will vary significantly as the U.S. dollar is its reporting currency, but it earns a significant amount of its revenues and incurs a significant amount of its expenses in ZAR and Korean won (“KRW”). The U.S. dollar to both the ZAR and KRW exchange rates has fluctuated significantly over the past three years. As exchange rates are outside the Company’s control, there can be no assurance that future fluctuations will not adversely affect the Company’s results of operations and financial condition. Interest rate risk As a result of its normal borrowing and lending activities, the Company’s operating results are exposed to fluctuations in interest rates, which it manages primarily through regular financing activities. The Company generally maintains limited investments in cash equivalents and held to maturity investments and has occasionally invested in marketable securities. Credit risk Credit risk relates to the risk of loss that the Company would incur as a result of non-performance by counterparties. The Company maintains credit risk policies with regard to its counterparties to minimize overall credit risk. These policies include an e valuation of a potential counterparty’s financial condition, credit rating, and other credit criteria and risk mitigation tools as the Company’s management deems appropriate. With respect to credit risk on financial instruments, the Company maintains a pol icy of entering into such transactions only with South African, South Korean and European financial institutions that have a credit rating of “B” (or its equivalent) or better, as determined by credit rating agencies such as Standard & Poor’s, Moody’s and Fitch Ratings. Microlending credit risk The Company is exposed to credit risk in its microlending activities, which provide unsecured short-term loans to qualifying customers. The Company manages this risk by performing an affordability test for each prospective customer and assigning a “creditworthiness score”, which takes into account a variety of factors such as other debts and total expenditures on normal household and lifestyle expenses. Equity price and liquidity risk Equity price risk relates to the risk of loss that the Company would incur as a result of the volatility in the exchange-traded price of equity securities that it holds and the risk that it may not be able to liquidate these securities. The market price of these securities may fluc tuate for a variety of reasons and, consequently, the amount that the Company may obtain in a subsequent sale of these securities may significantly differ from the reported market value. Liquidity risk relates to the risk of loss that the Company would i ncur as a result of the lack of liquidity on the exchange on which these securities are listed. The Company may not be able to sell some or all of these securities at one time, or over an extended period of time without influencing the exchange traded pric e, or at all. 6 . Fair value of financial instruments (continued) Financial instruments The following section describes the valuation methodologies the Company uses to measure its significant financial assets and liabilities at fair value. In general, and where applicable, the Company uses quoted price s in active markets for identical assets or liabilities to determine fair value. This pricing methodology would apply to Level 1 investments. If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, then the Company uses quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable either directly or indirectly. These investments would be included in Level 2 investments. In circumstances in which inputs ar e generally unobservable, values typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. Investments valued using such techniques are included in Level 3 investments. Asset measured at fair value using significant unobservable inputs – investment in Cell C The Company’s Level 3 asset represents an investment of 75,000,000 class “A” shares in Cell C, a significant mobile telecoms provider in South Africa . The Company used a discounted cash flow model developed by the Company to determine the fair value of its investment in Cell C as of June 30, 2019, and valued Cell C at $ 0.0 (zero) at December 31, 2019, and June 30, 2019. As of June 30, 2019, the Company changed its valuation methodology from a Company-developed adjusted EV/ EBITDA model to a discounted cash flow approach due to anticipated changes in Cell C’s business model and the current challenges faced by Cell C, which would not have been captured by the previous valuation approach. The Company believes the Cell C business plan utilized in the Company’s v aluation is reasonable based on the current performance and the expected changes in Cell C’s business model. The Company utilized the latest business plan provided by Cell C management for the period ending December 31, 2024, and the following key valuati on inputs were used as of December 31, 2019 and June 30, 2019: Weighted Average Cost of Capital: Between 15% and 20% over the period of the forecast Long term growth rate: 3 % (4,5% as of June 30, 2019) Marketability discount: 10% Minority discount: 15% Net adjusted external debt - December 31, 2019: (1) ZAR 16,4 billion ($1,2 billion), includes R6 billion of lease liabilities Net adjusted external debt - June 30, 2019: (2) ZAR 13,9 billion ($1,0 billion), includes R6,4 billion of lease liabilities Deferred tax (incl, assessed tax losses) - December 31, 2019: (1) ZAR 2,9 billion ($206,4 million) Deferred tax (incl, assessed tax losses) - June 30, 2019: (2) ZAR 2,9 billion ($205,9 million) (1) translated from ZAR to U.S. dollars at exchange rates applicable as of December 31, 2019. (2) translated from ZAR to U.S. dollars at exchange rates applicable as of June 30, 2019. The Company utilized the aforementioned adjusted EV/EBITDA multiple valuation model in order to determine the fair value of the Cell C shares as of December 31, 2018. The primary inputs to the valuation model as of December 31, 2018, were unchanged from Ju ne 30, 2018, except for the EBITDA multiple. The primary inputs to the valuation model were Cell C’s annualized adjusted EBITDA for the 11 months ended June 30, 2018, of ZAR 3.9 billion ( $270.9 million, translated at exchange rates applicable as of Decembe r 31, 2018) , an EBITDA multiple of 6.32; Cell C’s net external debt of ZAR 8.8 billion ( $611.4 million, translated at exchange rates applicable as of December 31, 2018); and a marketability discount of 10% as Cell C is not listed . The EBITDA multiple was d etermined based on an analysis of Cell C’s peer group, which comprises eight African and emerging market mobile telecommunications operators. The fair value of Cell C utilizing the adjusted EV/EBITDA valuation model developed by the Company is sensitive to the following inputs: (i) the Company’s determination of adjusted EBITDA ; (ii) the EBITDA multiple used ; and (iii) the marketability discount used. Utilization of different inputs, or changes to these inputs, may result in significantly higher or lower fa ir value measurement. The following table presents the impact on the carrying value of the Company’s Cell C investment of a 2 . 0 % increase and 2 . 0 % decrease in the WACC rate and the EBITDA margins used in the Cell C valuation on December 31, 2019, all amou nts translated at exchange rates applicable as of December 31, 2019 : Sensitivity for fair value of Cell C investment 2.0% increase(A) 2.0% decrease(A) WACC rate $ - $ 8 238 EBITDA margin $ 1 687 $ - (A) the carrying value of the Cell C investment is not impacted by a 1.0% increase or a 1.0% decrease and therefore the impact of a 2.0% increase and a 2.0% decrease is presented. 6 . Fair value of financial instruments Financial instruments (continued) The fair value of the Cell C shares as of December 31, 2019 , represented approximately 0% of the Company’s total assets, including these shares . The Company expects to hold these shares for an extended period of time and that there will be short-term equity price volatility with respect to these shares particularly given the c urrent situation of Cell C’s business. Liability measured at fair value using significant unobservable inputs – DNI contingent consideration The salient terms of the Company’s investment in DNI are described in Note 3 to the Company’s audited consolidate d financial statements included in its Annual Report on Form 10-K for the year ended June 30, 201 9. Under the terms of its subscription agreements with DNI, the Company agreed to pay to DNI an additional amount of up to ZAR 400.0 million ($27.8 million, tr anslated at exchange rates applicable as of December 31, 2018), in cash, subject to the achievement of certain performance targets by DNI. The Company expected to pay the additional amount during the first quarter of the year ended June 30, 2020, and recor ded an amount of ZAR 385.7 million ($26.8 million) and ZAR 373.6 million ($27.2 million), in other payables in its unaudited condensed consolidated balance sheet as of December 31, 2018, and in long-term liabilities as of June 30, 2018, respectively, which amount represents the present value of the ZAR 400.0 million to be paid (amounts translated at exchange rates applicable as of December 31, 2018, and June 30, 2018, respectively). The amount was settled on March 31, 2019, as described in Note 3 to the Com pany’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2019. Derivative transactions - Foreign exchange contracts As part of the Company’s risk management strategy, the Company enters into derivative transactions to mitigate exposures to foreign currencies using foreign exchange contracts. These foreign exchange contracts are over-the-counter derivative transactions. Substantially all of the Company’s derivative exposures are with count erparties that have long-term credit ratings of “B” (or equivalent) or better. The Company uses quoted prices in active markets for similar assets and liabilities to determine fair value (Level 2). The Company has no derivatives that require fair value mea surement under Level 1 or 3 of the fair value hierarchy. The Company had no outstanding foreign exchange contracts as of December 31, 2019, or June 30, 201 9 . The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 , according to the fair value hierarchy: Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Investment in Cell C $ - $ - $ - $ - Related to insurance business: Cash, cash equivalents and restricted cash (included in other long term assets) 587 - - 587 Fixed maturity investments (included in cash and cash equivalents) 2 845 - - 2 845 Other - 414 - 414 Total assets at fair value $ 3 432 $ 414 $ - $ 3 846 The following table presents t he Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 , according to the fair value hierarchy: Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Investment in Cell C $ - $ - $ - $ - Related to insurance business Cash and cash equivalents (included in other long-term assets) 619 - - 619 Fixed maturity investments (included in cash and cash equivalents) 5 201 - - 5 201 Other - 413 - 413 Total assets at fair value $ 5 820 $ 413 $ - $ 6 233 There have been no transfers in or out of Level 3 during the three and six months ended December 31, 2019 and 2018 , respectively. There was no movement in the carrying value of assets measured at fair value on a recurring basis, and categorized within Level 3, during the three and six months ended December 31, 2019. Summarized below is the movement in the carrying value of assets and liabilities measured at fair value on a recurr ing basis, and categorized within Level 3, during the six months ended December 31, 2019 : Carrying value Assets Balance as of June 30, 2019 - Foreign currency adjustment (1) - Balance as of December 31, 2019 $ - (1) The foreign currency adjustment represents the effects of the fluctuations of the South African rand and the U.S. dollar on the carrying value. Summarized below is the movement in the carrying value of assets and liabilities measured at fair value on a recurring basis, and categorized within Level 3, during the six months ended December 31, 2018 : Carrying value Assets Balance as at June 30, 2018 172 948 Realized losses (15 836) Foreign currency adjustment (1) (8 054) Balance as of December 31, 2018 149 058 Liabilities Balance as at June 30, 2018 27 222 Accretion of interest 835 Foreign currency adjustment (1) (1 267) Balance as of December 31, 2018 26 790 (1) The foreign currency adjustment represents the effects of the fluctuations of the South African rand and the U.S. dollar on the carrying value. Assets measured at fair value on a nonrecurring basis We measure equity investments without readily determinable fair values on a nonrecurring basis. The fair values of these investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. |
Equity-Accounted Investments An
Equity-Accounted Investments And Other Long-Term Assets | 6 Months Ended |
Dec. 31, 2019 | |
Equity-Accounted Investments And Other Long-Term Assets [Abstract] | |
Equity-Accounted Investments And Other Long-Term Assets | 7 . Equity-accounted investments and other long term assets Refer to Note 9 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2019, for additional information regarding its equity-accounted investments and other long-term assets. Equity-accounted investments The Company’s ownership percentage in its equity-accounted investments as of December 31, 2019 and June 30, 2019 , was as follows: December 31, June 30, 2019 2019 Bank Frick & Co AG (“Bank Frick”) 35% 35% DNI 30% 30% Finbond Group Limited (“Finbond”) 29% 29% Carbon Tech Limited (“Carbon”), formerly OneFi Limited 25% 25% Revix (“Revix”) 25% - SmartSwitch Namibia (Pty) Ltd (“SmartSwitch Namibia”) 50% 50% V2 Limited (“V2”) 50% 50% Walletdoc Proprietary Limited (“Walletdoc”) 20% 20% DNI During the three and six months ended December 31, 2019 , the Company recorded earnings from DNI that resulted in the carrying value of DNI exceeding the amount that the Company could receive pursuant to the call option granted to DNI in May 2019. During the three and six months ended December 31, 2019 , t he Company has recorded an impairment loss of $ 0,8 million and $ 1,1 million, respectively, which represents the difference between the amount that the Company could receive pursuant to the call option and DNI’s carrying value. Bank Frick On October 2, 2019, the Company exercised its option to acquire an additional 35% interest in Bank Frick from the Frick Family Foundation. The Company will pay an amount, the “Option Price Consideration”, for the additional 35% interest in Bank Frick, which represents the higher of CHF 46.4 million ($46.5 million at exchange rates on October 2, 2019) or 35% of 15 times the averag e annual normalized net income of the Bank over the two years ended December 31, 201 8 . The shares will only transfer on payment of the Option Price Consideration, which shall occur on the later of (i) 180 days after the date of exercise of the option; (ii) in the event of any regulatory approvals being required, 10 days after receipt of approval (either unconditionally or on terms acceptable to both parties); and (iii) 10 days after the date on which the Option Price Consideration is agreed or finally deter mined. Finbond As of December 31, 2019, the Company owned 268 820 933 shares in Finbond representing approximately 29,1% of its issued and outstanding ordinary shares . Finbond is listed on the Johannesburg Stock Exchange and its c losing price on December 31, 2019, the last trading day of the month, was ZAR 3,50 per share. The market value of the Company’s holding in Finbond on December 31, 2019, was ZAR 0,9 billion ($ 67,0 million translat ed at exchange rates applicable as of December 31, 2019). On August 2, 2019, the Company, pursuant to its election, received an additional 1,148,901 shares in Finbond as a capitalization share issue in lieu of a dividend. V2 Limited In August 2019, the C ompany made a further equity contribution of $1.3 million to V2 Limited (“V2”) and in January 2020 it made its final committed equity contribution of $1.3 million bringing the total equity contribution to $5.0 million . The Company has also committed to provi de V2 with a working capital facility of $5.0 million, which is subject to the achievement of certain pre-defined objectives. 7 . Equity-accounted investments and other long term assets (continued) Equity-accounted investments (continued) DNI Bank Frick Finbond Other (1) Total Investment in equity Balance as of June 30, 2019 $ 61 030 $ 47 240 $ 35 300 $ 7 398 $ 150 968 Acquisition of shares - - 274 1 250 1 524 Stock-based compensation - - 71 - 71 Comprehensive income (loss): 1 108 469 2 718 (499) 3 796 Other comprehensive loss - - 2 227 - 2 227 Equity accounted earnings (loss) 1 108 469 491 (499) 1 569 Share of net income 3 113 755 491 (499) 3 860 Amortization of acquired intangible assets (1 292) (376) - - (1 668) Deferred taxes on acquired intangible assets 361 90 - - 451 Impairment (1 074) - - - (1 074) Dividends received (1 110) - (274) (338) (1 722) Foreign currency adjustment (2) 137 453 300 (48) 842 Balance as of December 31, 2019 $ 61 165 $ 48 162 $ 38 389 $ 7 763 $ 155 479 Investment in loans: Balance as of June 30, 2019 $ - $ - $ - $ 148 $ 148 Loans granted - - - 612 612 Allowance for doubtful loans - - - (620) (620) Foreign currency adjustment (2) - - - 8 8 Balance as of December 31, 2019 $ - $ - $ - $ 148 $ 148 Equity Loans Total Carrying amount as of : June 30, 2019 $ 150 968 $ 148 $ 151 116 December 31, 2019 $ 155 479 $ 148 155 627 (1) Includes primarily Carbon, SmartSwitch Namibia, V2 and Walletdoc; (2) The foreign currency adjustment represents the effects of the fluctuations of the South African rand, Swiss franc, Nigerian naira and Namibian dollar, and the U.S. dollar on the carrying value. Other long-term assets Summarized below is the breakdown of other long-term assets as of December 31, 2019 , and June 30, 2019 : December 31, June 30, 2019 2019 Total equity investments $ 26 993 $ 26 993 Investment in 15% of Cell C, at fair value (Note 6) - - Investment in 13% of MobiKwik 26 993 26 993 Total held to maturity investments - - Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes - - Long-term portion of payments to agents in South Korea amortized over the contract period (Note 3) 6 530 9 564 Policy holder assets under investment contracts (Note 9) 587 619 Reinsurance assets under insurance contracts (Note 9) 1 159 1 163 Other long-term assets 5 875 5 850 Total other long-term assets $ 41 144 $ 44 189 Summarized below are the components of the Company’s equity securities without readily determinable fair value and held to maturity investments as of December 31, 2019 : Cost basis Unrealized holding Unrealized holding Carrying gains losses value Equity securities: Investment in Mobikwik $ 26 993 $ - $ - $ 26 993 Held to maturity: Investment in Cedar Cellular notes - - - - Total $ 26 993 $ - $ - $ 26 993 Summarized below are the components of the Company’s equity securities without readily determinable fair value and held to maturity investments as of June 30, 2019 : Cost basis Unrealized holding Unrealized holding Carrying gains losses value Equity securities: Investment in MobiKwik $ 26 993 $ - $ - $ - Held to maturity: Investment in Cedar Cellular notes - - - - Total $ 26 993 $ - $ - $ - No interest income from the Cedar Cellular note was recorded during the three and six months ended December 31, 2019. The Company recognized interest income of $1.2 million and $1.4 million, related to the Cedar Cellular notes during the three and six mont hs ended December 31, 2018, respectively. Interest on this investment will only be paid, at Cedar Cellular’s election, on maturity in August 2022. The Company’s effective interest rate on the Cedar Cellular note was 24.82% as of December 31, 2018. As of De cember 31, 2018, t he Company d id not expect to recover the entire amortized cost basis of the Cedar Cellular notes due to a reduction in the amount of future cash flows expected to be collected from the debt security. The Company d id not expect to generate any cash flows from the debt security prior to the maturity date in August 2022, and expect ed to recover approximately $22.0 million at maturity. As of December 31, 2018, t he Company calculated the present value of the expected cash flows to be collected from the debt security by discounting the cash flows at the interest rate implicit in the security upon acquisition (at a rate of 24.82%). The present value of the expected cash flows of $9.0 million wa s less than the amortized cost basis recorded of $11.8 million (before the impairment) as of December 31, 2018 . Accordingly, the Company recorded an other-than-temporary impairment related to a credit loss of $2.7 million during the three and six months ended December 31, 2018. 7 . Equity-accounted investments and other long term assets (continued) Other long-term assets (continued) Contractual maturities of held to maturity investments Summarized below is the contractual maturity of the Company’s held to maturity investment as of December 31, 2019 : Cost basis Estimated fair value (1) Due in one year or less $ - $ - Due in one year through five years (2) - - Due in five years through ten years - - Due after ten years - - (1) The estimated fair value of the Cedar Cellular note has been calculated utilizing the Company’s portion of the security provided to the Company by Cedar Cellular, namely, Cedar Cellular’s investment in Cell C. (2) The cost basis is zero ($0.0 million). |
Goodwill And Intangible Assets,
Goodwill And Intangible Assets, Net | 6 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets, Net [Abstract] | |
Goodwill And Intangible Assets, Net | 8 . Goodwill and intangible assets, net Goodwill Impairment loss The Company assesses the carrying value of goodwill for impairment annually, or more frequently, whenever events occur and circumstances change indicating potential impairment. The Company performs its annual impairment test as of June 30 of each year. Dur ing the three and six months ended December 31, 2018, the Company recognized an impairment loss of approximately $8.2 million, of which approximately $7.0 million related to goodwill allocated to its International Payment Group (“IPG”) business within its internat ional transaction processing operating segment and $1.2 million related to goodwill within its South African transaction processing operating segment. Given the consolidation and restructuring of IPG during the period up to December 31, 2018 , several business lines were termin ated or meaningfully reduced, resulting in lower than expected revenues, profits and cash flows. IPG’s new business initiatives are still in their infancy, and it is expected to generate lower cash flows than initially forecast. In order to determine the a mount of goodwill impairment, the estimated fair value of the Company’s IPG business assets and liabilities were compared to the carrying value of IPG’s assets and liabilities. The Company used a discounted cash flow model in order to determine the fai r value of IPG. The allocation of the fair value of IPG required the Company to make a number of assumptions and estimates about the fair value of assets and liabilities where the fair values were not readily available or observable. Based on this analysis , the Company determined that the carrying value of IPG’s assets and liabilities exceeded their fair value at the reporting date. In the event that there is a deterioration in the South African transaction processing and the international transaction proc essing operating segments, or in any other of the Company’s businesses, this may lead to additional impairments in future periods. Summarized below is the movement in the carrying value of goodwill for the six months ended December 31, 2019 : Gross value Accumulated impairment Carrying value Balance as of June 30, 2019 $ 184 544 $ (35 157) $ 149 387 Disposal of FIHRST (Note 2) (599) - (599) Foreign currency adjustment (1) 122 28 150 Balance as of December 31, 2019 $ 184 067 $ (35 129) $ 148 938 (1) – The foreign currency adjustment represents the effects of the fluctuations between the South African rand, the Euro and the Korean won, and the U.S. dollar on the carrying value. South African transaction processing International transaction processing Financial inclusion and applied technologies Carrying value Balance as of June 30, 2019 $ 19 208 $ 112 728 $ 17 451 $ 149 387 Disposal of FIHRST (Note 2) (599) - - (599) Foreign currency adjustment (1) 23 83 44 150 Balance as of December 31, 2019 $ 18 632 $ 112 811 $ 17 495 $ 148 938 (1) – The foreign currency adjustment represents the effects of the fluctuations between the South African rand, the Euro and the Korean won, and the U.S. dollar on the carrying value. 8 . Goodwill and intangible assets, net Intangible assets Carrying value and amortization of intangible assets Summarized below is the carrying value and accumulated amortization of the intangible assets as of December 31, 2019 and June 30, 2019 : As of December 31, 2019 As of June 30, 2019 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Finite-lived intangible assets: Customer relationships $ 95 792 $ (89 273) $ 6 519 $ 96 653 $ (86 285) $ 10 368 Software and unpatented technology 28 883 (28 598) 285 32 071 (31 829) 242 FTS patent 2 727 (2 727) - 2 721 (2 721) - Trademarks 6 784 (6 307) 477 6 772 (6 265) 507 Total finite-lived intangible assets 134 186 (126 905) 7 281 138 217 (127 100) 11 117 Infinite-lived intangible assets: Financial institution licenses 762 - 762 772 - 772 Total infinite-lived intangible assets 762 - 762 772 - 772 Total intangible assets $ 134 948 $ (126 905) $ 8 043 $ 138 989 $ (127 100) $ 11 889 Aggregate amortization expense on the finite-lived intangible assets for the three months ended December 31, 2019 and 2018 , was approximately $ 1,9 million and $ 6,1 million, respectively. Aggregate amortization expense on the finite-lived intangible assets for the six months ended December 31, 2019 and 2018 , was approximately $ 3,8 million and $ 12,2 million, respec tively. 8 . Goodwill and intangible assets, net Intangible assets (continued) Carrying value and amortization of intangible assets (continued) Future estimated annual amortization expense for the next five fiscal years and thereafter, assumin g exchange rates that prevailed on December 31, 2019 , is presented in the table below. Actual amortization expense in future periods could differ from this estimate as a result of acquisitions, changes in useful lives, exchange rate fluctuations and other relevant factors. Fiscal 2020 $ 7 919 Fiscal 2021 2 807 Fiscal 2022 73 Fiscal 2023 73 Fiscal 2024 72 Thereafter 145 Total future estimated annual amortization expense $ 11 089 |
Assets And Policy Holder Liabil
Assets And Policy Holder Liabilities Under Insurance And Investment Contracts | 6 Months Ended |
Dec. 31, 2019 | |
Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | |
Assets And Policy Holder Liabilities Under Insurance And Investment Contracts | 9 . Assets and policyholder liabilities under insurance and investment contracts Reinsurance a ssets and policyholder liabilities under insurance contracts Summarized below is the movement in reinsurance assets and policyholder liabilities under insurance contracts during the six months ended December 31, 2019 : Reinsurance Assets (1) Insurance contracts (2) Balance as of June 30, 2019 $ 1 163 $ (1 880) Increase in policy holder benefits under insurance contracts 220 (3 232) Claims and policyholders’ benefits under insurance contracts (227) 3 201 Foreign currency adjustment (3) 3 (5) Balance as of December 31, 2019 $ 1 159 $ (1 916) (1) Included in other long-term assets. (2) Included in other long-term liabilities. (3) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. The Company has agreements with reinsurance companies in order to limit its losses from large insurance contracts, however, if the reinsurer is unable to meet its obligations, the Company retains the liability. The value of insurance contract liabilities is based on the best estimate assumptions of future experience plus prescribed margins, as required in the markets in which these products are offered, namely South Africa. The process of deriving the best estimates assumptions plus prescribed margins includes assumptions related to claim reporting delays (based on average industry experience). Assets and policyholder liabilities under investment contracts Summarized below is the movement in assets and policyholder liabilities under investment contracts during the six months ended December 31, 2019 : Assets (1) Investment contracts (2) Balance as of June 30, 2019 $ 619 $ (619) Increase in policy holder benefits under investment contracts 2 (2) Claims and policyholders’ benefits under investment contracts (36) 36 Foreign currency adjustment (3) 2 (2) Balance as of December 31, 2019 $ 587 $ (587) (1) Included in other long-term assets. (2) Included in other long-term liabilities. (3) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. The Company does not offer any investment products with guarantees related to capital or returns. |
Borrowings
Borrowings | 6 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Borrowings | 10 . Borrowings Refer to No te 12 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended Ju ne 30, 201 9 , for additional information regarding its borrowings . South Africa The amounts below have been translated at exchange rates applicable as of the dates specified. July 2017 Facilities, as amended, comprising a short-term facility and long-term borrowings Short-term facility - Facility E On September 26, 2018, Net1 SA further revised its amended July 2017 Facilities agreement with RMB to include an overdraft facility (“Facility E”) of up to ZAR 1.5 billion ($106. 8 m illion, translated at exchange rates applicable as of December 31, 2019 ) to fund the Company’s ATMs. The available Facility E overdraft facility was subsequently reduced to ZAR 1,2 billion ($ 85,4 million, translated at exchange rates applicable as of December 31, 2019 ) in September 2019. Interest on the overdraft facility is payable on the last day of each month and on the final maturity date based on the South African prime rate. The overdr aft facility will be reviewed in September 2020. The overdraft facility amount utilized must be repaid in full within one month of utilization and at least 90% of the amount utilized must be repaid with 25 days. The overdraft facility is secured by a pledg e by Net1 SA of, among other things, cash and certain bank accounts utilized in the Company’s ATM funding process, the cession of an insurance policy with Senate Transit Underwriters Managers Proprietary Limited, and any rights and claims Net1 SA has again st Grindrod Bank Limited. As at December 31, 2019, the Company had utilized approximately ZAR 1,0 billion ($ 72,7 million) of this overdraft facility. This ZAR 1,2 billion overdraft facility may only be us ed to fund ATMs and therefore the overdraft utilized and converted to cash to fund the Company’s ATMs is considered restricted cash. The prime rate on December 31, 2019, was 10,00% and reduced to 9,75% on January 17, 2020, following a reduction in the South African repo rate . Long -term borrowings facility - Facility F On September 4, 2019, Net1 SA further amended its amended July 2017 Facilities agreement with RMB and Nedbank to include an overdraft facility (“Fac ility F”) of up to ZAR 300,0 million ($ 21,4 million , translated at exchange rates applicable as of December 31, 2019) for the sole purpose of funding the acquisition of airtime from Cell C. Net1 SA may not dispose of the airt ime acquired from Cell C prior to April 1, 2020, without the prior consent of RMB, Absa Bank Limited and Investec Asset Management Proprietary Limited. Facility F comprises (i) a first Senior Facility F loan of ZAR 220,0 million (ii ) a second Senior Facility F loan of ZAR 80,0 million, or such lesser amount as may be agreed by the facility agent. Facility F is required to be repaid in full within nine months following the first utilization of the facility. N et1 SA is required to prepay Facility F subject to customary prepayment terms. Interest on Facility F is based on JIBAR plus a margin of 5,50% per annum and is due in full on repayment of the loan. JIBAR was 6,80% on December 31, 2019. The margin on the Facility F increased by 1% on November 1, 2019, because we had not disposed of our remaining shareholding in DNI and FIHRST by that date. Net1 SA paid a non-refundable structuring fee of ZAR 2.2 million ($0.1 million) to the Lenders in September 2019, and the Company expensed this amount in full during the first quarter of fiscal 2020. Nedbank facility, comprising short-term faciliti es As of December 31, 2019, the aggregate amount of the Company’s short-term South African credit facility with Nedbank Limited was ZAR 450,0 million ($ 32,0 million) . The credit facility comprises an overdraft facility of (i) up to ZAR 300,0 million ($ 21,4 million), which is further split into (a) a ZAR 250,0 million ($ 17,8 million) overdraft facility which may only be used to fund mobile ATMs and (b) a ZAR 50,0 million ($ 3,6 million) general banking facility and (ii) indirect and derivative facilities of up to ZAR 150,0 million ($ 10,7 million), which include letters of guarantees, letters of credit and forward e xchange contracts. The ZAR 250,0 million component of the primary amount may only be used to fund ATMs and therefore this component of the primary amount utilized and converted to cash to fund the Company’s ATMs is considered restricted cash. The short-term facility provides Nedbank with the right to set off funds held in certain identified Company bank accounts with Nedbank against any amounts owed to Nedbank under the facility. As of December 31, 2019 , the Company had total funds of $ 2,7 million in bank accounts with Nedbank which have been set off against $ 14,4 million drawn under the Nedbank facility, for a net amount drawn under the facility of $ 11,7 million. As of December 31, 2019, the interest rate on the overdraft facility was 8,85% , and reduced to 8,60% on January 17, 2020, following a reduction in the South African repo rate. As of December 31, 2019 , the Com pany ha d utilized approximately ZAR 164,3 million ($ 11,7 million) of its ZAR 300,0 million overdraft facility to fund ATMs, and none of its ZAR 50,0 million general banking facility. As of December 31, 2019 and June 30, 2019, the Company had utilized approximately ZAR 93,6 million ($ 6,7 million) and ZAR 93.6 million ($6.6 million), respectively, of its indirect and derivative facilities of ZAR 150 million to enable the bank to issue guarantees, letters of credit and forward exchange contracts , in order for the Company to honor its obligations to third parties requiring such guarantees (refer to Note 21 ). United States, a short-term fac ility 10 . Borrowings (continued) On September 14, 2018, the Company renewed its $10.0 million overdraft facility from Bank Frick and on February 4, 2019, the Company increased the overdraft facility to $ 20,0 million. The interest rate on the facilities is 4,50% plus 3-month US dollar LIBOR and interest is payable on a quarterly basis. The 3-month US dollar LIBOR rate was 1,91% on December 31, 2019 . The facility has no fixed term, however, it may be terminated by either p arty with six weeks written notice. The facility is secured by a pledge of the Company’s investment in Bank Frick. As of December 31, 2019 , the Company had utilized approximately $ 13,9 million of this facility. South Korea, a short-t erm facility The Company obtained a one year KRW 10,0 billion ($ 8,7 million) short-term overdraft facility from Hana Bank, a South Korean bank, in January 2019. The interest rate on the facilit y is 1,98% plus the 3-month CD rate. The CD rate as of December 31, 2019 was 1,53% . The facility expires in January 202 1 , however can be renewed. The facility is unsecured with no fixed repayment terms. As of December 31, 2019 , the Company had not utilized this facility. Movement in short-term credit facilities Summarized below are t he Company’s short-term facilities as of December 31, 2019 , and the movement in the Company’s short-term facilities from as of June 30, 2019 to as of December 31, 2019 South Africa United States South Korea Total Amended July 2017 Nedbank Bank Frick Hana Short-term facilities available as of December 31, 2019 $ 85 419 $ 32 032 $ 20 000 $ 8 654 $ 146 105 Overdraft - 3 559 20 000 8 654 32 213 Overdraft restricted as to use for ATM funding only 85 419 17 796 - - 103 215 Indirect and derivative facilities - 10 677 - - 10 677 Movement in utilized overdraft facilities: Balance as of June 30, 2019 69 566 5 880 9 544 - 84 990 Utilized 349 466 33 722 8 362 - 391 550 Repaid (346 525) (28 029) (4 000) - (378 554) Foreign currency adjustment (1) 157 123 - - 280 Balance as of December 31, 2019 (2) 72 664 11 696 13 906 - 98 266 Restricted as to use for ATM funding only 72 664 11 696 - - 84 360 No restrictions as to use - - 13 906 - 13 906 Movement in utilized i ndirect and derivative facilities: Balance as of June 30, 2019 - 6 643 - - 6 643 Foreign currency adjustment (1) - 17 - - 17 Balance as of December 31, 2019 $ - $ 6 660 $ - $ - $ 6 660 (1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. (2) Nedbank balance as of December 31, 2019, of $11.7 million comprises the net of total overdraft facilities withdrawn of $14.4 million offset against funds in bank accounts with Nedbank of $2.7 million. Movement in long-term borrowings Summarized below is the movement in the Company’s long term borrowing from as of June 30, 2019 and December 31, 2019 : South Africa Amended July 2017 Total Balance as of June 30, 2019 $ - $ - Current portion of long-term borrowings - - Long-term borrowings - - Utilized 14 798 14 798 Repaid (11 313) (11 313) Foreign currency adjustment (1) 578 578 Balance as of December 31, 2019 4 063 4 063 Current portion of long-term borrowings 4 063 4 063 Long-term borrowings $ - $ - (1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. Interest expense incurred under the Company’s South African long-term borrowing during the three months ended December 31, 2019 and 2018 , was $ 0,4 million and $ 0,9 million, respectively. Interest expense inc urred during the six months ended December 31, 2019 and 2018 , was $ 0,6 million and $ 2,1 million, respectively. There were no prepaid facility fee amortization during the three and six months ended December 31, 2019 . Prepaid facility fees amortized during the three and six months ended December 31, 2018 , was $ 0,1 million and $ 0,2 million, respectively. |
Other Payables
Other Payables | 6 Months Ended |
Dec. 31, 2019 | |
Other Payables [Abstract] | |
Other Payables | 11 . Other payables Summarized below is the breakdown of other payables as of December 31 , 2019 and June 30, 201 9 : December 31, June 30, 2019 2019 Accrual of implementation costs to be refunded to SASSA $ 35 270 $ 34 039 Accruals 15 376 10 620 Provisions 4 390 6 074 Other 8 801 10 814 Value-added tax payable 3 624 3 234 Payroll-related payables 1 131 1 113 Participating merchants settlement obligation 542 555 $ 69 134 $ 66 449 Refer to Note 13 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2019, for additional information regarding Accrual of implementation costs to be refunded to SASSA. As of December 31, 2019 , this accrual of $35.3 million (ZAR 495.5 million, translated at exchange rates applicable as of December 31, 2019, comprised a revenue refund of $19.8 million (ZAR 277.6 million), accrued interest of $12.6 million (ZAR 177.6 million), uncl aimed indirect taxes of $2.8 million (ZAR 38.9 million) and estimated costs of $0.1 million (ZAR 1.4 million)). As of June 30, 2019, this accrual of $34.0 million (ZAR 479.4 million, translated at exchange rates applicable as of June 30, 2019, comp rised a revenue refund of $19.7 million (ZAR 277.6 million), accrued interest of $11.4 million (ZAR 161.0 million), unclaimed indirect taxes of $2.8 million (ZAR 39.4 million) and estimated costs of $0.1 million (ZAR 1.4 million)). Other includes transa ctions-switching funds payable, deferred income, client deposits and other payables. |
Capital Structure
Capital Structure | 6 Months Ended |
Dec. 31, 2019 | |
Capital Structure [Abstract] | |
Capital Structure | 12 . Capital structure The following table presents a reconciliation between the number of shares, net of treasury, presented in the unaudited condensed consolidated statement of changes in equity during the six months ended December 31, 2019 and 2018 , respectively, and the number of shares, net of treasury, excluding non-vested equity shares that have not vested during the six months ended December 31, 2019 and 2018 , respectively: December 31, December 31, 2019 2018 Number of shares, net of treasury: Statement of changes in equity 56 568 425 56 833 925 Non-vested equity shares that have not vested as of end of period 583 908 860 817 Number of shares, net of treasury, excluding non-vested equity shares that have not vested 55 984 517 55 973 108 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 13 . Accumulated other comprehensive loss T he table below presents the change in accumulated other comprehensive (loss) income per component during the three months ended December 31, 2019 : Three months ended December 31, 2019 Accumulated foreign currency translation reserve Total Balance as of October 1, 2019 $ (214 640) $ (214 640) Release of foreign currency translation reserve related to disposal of FIHRST (Note 2) 1 578 1 578 Movement in foreign currency translation reserve related to equity-accounted investment (491) (491) Movement in foreign currency translation reserve 19 114 19 114 Balance as of December 31, 2019 $ (194 439) $ (194 439) The table below presents the change in accumulated other comprehensive (loss) income per component during the three months ended December 31, 2018 : Three months ended December 31, 2018 Accumulated foreign currency translation reserve Total Balance as of October 1, 2018 $ (189 630) $ (189 630) Movement in foreign currency translation reserve (8 744) (8 744) Balance as of December 31, 2018 $ (198 374) $ (198 374) 13 . Accumulated other comprehensive loss (continued) T he table below presents the change in accumulated other comprehensive (loss) income per component during the six months ended December 31, 2019 : Six months ended December 31, 2019 Accumulated foreign currency translation reserve Total Balance as of July 1, 2019 $ (199 273) $ (199 273) Release of foreign currency translation reserve related to disposal of FIHRST (Note 2) 1 578 1 578 Movement in foreign currency translation reserve related to equity-accounted investment 2 227 2 227 Movement in foreign currency translation reserve 1 029 1 029 Balance as of December 31, 2019 $ (194 439) $ (194 439) The table below presents the change in accumulated other comprehensive (loss) income per component during the six months ended December 31, 2018 : Six months ended December 31, 2018 Accumulated foreign currency translation reserve Total Balance as of July 1, 2018 $ (184 538) $ (184 538) Movement in foreign currency translation reserve related to equity-accounted investment 5 430 5 430 Movement in foreign currency translation reserve (19 266) (19 266) Balance as of December 31, 2018 $ (198 374) $ (198 374) 13 . Accumulated other comprehensive loss (continued) During the three and six months ended December 31, 2019 , the Company reclassified $1.6 million from accumulated other comprehensive loss (accumulated foreign currency translation reserve) to net loss related to the FIHRST disposal (refer to Note 2 ). There were no reclassifications from accumulated other comprehensive loss to net income during the three and six months ended December 31, 2018 . |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 14 . Stock-based compensation Stock option and restricted stock activity Options The following table summarizes stock option activity for the six months ended December 31, 2019 and 2018 : Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Aggregate intrinsic value ($'000) Weighted average grant date fair value ($) Outstanding - June 30, 2019 864 579 7,81 7,05 - 2,62 Granted - September 2019 561 000 3,07 10,00 676 1,20 Outstanding - December 31, 2019 1 425 579 5,94 7,81 365 2,07 Outstanding - June 30, 2018 809 274 13,99 2,67 370 4,20 Granted – September 2018 600 000 6,20 10,00 1 212 2,02 Forfeited (200 000) 24,46 - - 7,17 Outstanding - December 31, 2018 1 209 274 8,41 6,15 72 2,62 During the three and six months ended December 31, 2019 , 561,000 stock options were awarded to employees. No stock options were awarded during the three months ended December 31, 2018 . During the six months ended December 31, 2018 , 600,000 stock options were awarded to executive officers and employees. No stock options were forfeited during the six months ended December 31, 2019 or during the three months ended December 31, 2018 . During the six months ended December 31, 2018 , executive officers forfeited 200,000 stock options granted in August 2008, with a strike price of $24.46 per share, as these stock options expired unexercised. The fair value of each option is estimated on the date of grant using the Cox Ross Rubi nstein binomial model that uses the assumptions noted in the following table. The estimated expected volatility is calculated based on the Company’s 750-day volatility. The estimated expected life of the option was determined based on historical behavior o f employees who were granted options with similar terms. The table below presents the range of assumptions used to value options granted during the six months ended December 31, 2019 and 2018 : Six months ended December 31, 2019 2018 Expected volatility 57% 44% Expected dividends 0% 0% Expected life (in years) 3 3 Risk-free rate 1,57% 2,75% The following table presents stock options vested and expected to vest as of December 31, 2019 : Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Aggregate intrinsic value ($’000) Vested and expecting to vest - December 31, 2019 1 425 579 5,94 7,81 365 These options have an exercise price range of $3.07 to $11.23. 14 . Stock-based compensation (continued) Stock option and restricted stock activity (continued) Options (continued) The following table presents stock options that are exercisable as of December 31, 2019 : Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Exercisable - December 31, 2019 523 914 8,86 5,52 No stock options became exercisable during the three months ended December 31, 2019 or during the three and six months ended December 31, 2018 , respectively. However, during the six months ended December 31, 2019 , 170,335 stock options became exercisable. The Company issues new shares to satisfy stock option exercises. Restricted stock The following table summarizes restricted stock activity for the six months ended December 31, 2019 and 2018 : Number of shares of restricted stock Weighted average grant date fair value ($’000) Non-vested – June 30, 2019 583 908 3 410 Non-vested – December 31, 2019 583 908 3 410 Non-vested – June 30, 2018 765 411 6 162 Granted – September 2018 148 000 114 Vested - August 2018 (52 594) 459 Non-vested – December 31, 2018 860 817 5 785 The September 2018 grants comprise 148,000 shares of restricted stock awarded to executive officers that are subject to market and time-based vesting. During the three months ended September 30, 2018, 52,594 shares of restricted stock granted to non-employee directors vested. 14 . Stock-based compensation (continued) Stock option and restricted stock activity (continued) Restricted stock (continued) Market Conditions - Restricted Stock Granted in September 2018 The 148,000 shares of restricted stock awarded to executive officers in September 2018 are subject to time-based and performance-based (a market condition) vesting conditions and vest in full only on the date, if any, that the following conditions are satisfied: (1) the pri ce of the Company’s common stock must equal or exceed certain agreed VWAP levels (as described below) during a measurement period commencing on the date that it files its Annual Report on Form 10-K for the fiscal year ended 2021 and ending on December 31, 2021 and (2) the recipient is employed by the Company on a full-time basis when the condition in (1) is met. If either of these conditions is not satisfied, then none of the shares of restricted stock will vest and they will be forfeited. The $ 23.00 price target represents an approximate 55 % increase, compounded annually, in the price of the Company’s common stock on Nasdaq over the $ 6.20 closing price on September 7, 2018 . The VWAP levels and vesting percentages related to such levels are as follows: Below $ 15.00 (threshold)— 0 % At or above $ 15.00 and below $ 19.00 — 33 % At or above $ 19.00 and below $ 23.00 — 66 % At or above $ 23.00 — 100 % The fair value of these shares of restricted stock was calculated using a Monte Carlo simulation of a stochastic volatility process. The choice of a stochastic volatility process as an extension to the standard Black Scholes process was driven by both observations of larger than expected moves in the daily time series for the Company’s VWAP price, but also the observation of t he strike structure of volatility (i.e. skew and smile) for out-of-the money calls and out-of-the money puts versus at-the-money options for both the Company’s stock and NASDAQ futures. In scenarios where the shares do not vest, the final vested value at maturity is zero. In scenarios where vesting occurs, the final vested value on maturity is the share price on vesting date. In its calculation of the fair value of the restricted stock, the Company used an average volatility of 37.4 % for the VWAP price, a discounting based on USD overnight indexed swap rates for the grant date, and no future dividends. The average volatility was extracted from the time series for VWAP prices as the standard deviation of log prices for the three years preceding the grant dat e. The mean reversion of volatility and the volatility of volatility parameters of the stochastic volatility process were extracted by regressing log differences against log levels of volatility from the time series for at-the-money options 30 day volatili ty quotes, which were available from January 2, 2018 onwards. Market Conditions - Restricted Stock Granted in August 2017 The 210,000 shares of restricted stock awarded to executive officers in August 2017 are subject to time-based and performance-based (a market condition) vesting conditions and vest in full only on the date, if any, that the following conditions are satisfied: (1) the price of the Company’s common stock must equal or exceed certain agreed VWAP levels (as described below) during a measur ement period commencing on the date that it files its Annual Report on Form 10-K for the fiscal year ended 2020 and ending on December 31, 2020 and (2) the recipient is employed by the Company on a full-time basis when the condition in (1) is met. If eithe r of these conditions is not satisfied, then none of the shares of restricted stock will vest and they will be forfeited. The $ 23.00 price target represents an approximate 35 % increase, compounded annually, in the price of the Company’s common stock on Nas daq over the $ 9.38 closing price on August 23, 2017 . The VWAP levels and vesting percentages related to such levels are as follows: Below $ 15.00 (threshold)— 0 % At or above $ 15.00 and below $ 19.00 — 33 % At or above $ 19.00 and below $ 23.00 — 66 % At or above $ 23.00 — 100 % These 210,000 shares of restricted stock are effectively forward starting knock-in barrier options with multi-strike prices of zero. The fair value of these shares of restricted stock was calculated utilizing a Monte Carlo simulation model which was developed for the p urpose of the valuation of these shares. For each simulated share price path, the market share price condition was evaluated to determine whether or not the shares would vest under that simulation. A standard Geometric Brownian motion process was used in t he forecasting of the share price instead of a “jump diffusion” model, as the share price volatility was more stable compared to the highly volatile regime of previous years. Therefore, the simulated share price paths capture the idiosyncrasies of the obse rved Company share price movements. 14 . Stock-based compensation (continued) (continued) Stock option and restricted stock activity (continued) Restricted stock (continued) Market Conditions - Restricted Stock Granted in August 2017 (continued) In scenarios where the shares do not vest, the final veste d value at maturity is zero. In scenarios where vesting occurs, the final vested value on maturity is the share price on vesting date. The value of the grant is the average of the discounted vested values. The Company used an expected volatility of 44.0 %, an expected life of approximately three years , a risk-free rate ranging between 1.275 % to 1.657 % and no future dividends in its calculation of the fair value of the restricted stock. The estimated expected volatility was calculated based on the Company’s 3 0 day VWAP share price using the exponentially weighted moving average of returns. Stock-based compensation charge and unrecognized compensation cost The Company recorded a stock-based c ompensation charge, net during the three months ended December 31, 2019 and 2018 of $ 0. 4 million and $ 0.6 million respectively, which comprised: Allocated to cost of goods sold, Allocated to IT processing, selling, general Total servicing and and charge support administration Three months ended December 31, 2019 Stock-based compensation charge $ 436 $ - $ 436 Total - three months ended December 31, 2019 $ 436 $ - $ 436 Three months ended December 31, 2018 Stock-based compensation charge $ 598 $ - $ 598 Total - three months ended December 31, 2018 $ 598 $ - $ 598 14 . Stock-based compensation (continued) The Company recorded a stock-based compensation charge, net during the six months ended December 31, 2019 and 2018 of $ 0 . 8 million and $ 1 . 2 million respectively, which comprised: Allocated to cost of goods sold, Allocated to IT processing, selling, general Total servicing and and charge support administration Six months ended December 31, 2019 Stock-based compensation charge $ 823 $ - $ 823 Total - Six months ended December 31, 2019 $ 823 $ - $ 823 Six months ended December 31, 2018 Stock-based compensation charge $ 1 185 $ - $ 1 185 Total - Six months ended December 31, 2018 $ 1 185 $ - $ 1 185 The stock-based compensation charges have been allocated to selling, general and administration based on the allocation of the cash compensation paid to the relevant employees. As of December 31, 2019 , the total unrecognized compensation cost rela ted to stock options was approximately $1.3 million, which the Company expects to recognize over approximately three years . As of December 31, 2019 , the total unrecognized compensation cost related to restricted stock awards was approximately $ 1.1 m illion, which the Company expects to recognize over approximately two years . As of December 31, 2019 and June 30, 2019 , respectively, the Company recorded a deferred tax asset of approximately $ 0.3 million and $ 0.2 million, related t o the stock-based compensation charge recognized related to employees of Net1. As of December 31, 2019 , and June 30, 2019 , respectively, the Company recorded a valuation allowance of approximately $ 0.3 million and $ 0.2 million, relate d to the deferred tax asset because it does not believe that the stock-based compensation deduction would be utilized as it does not anticipate generating sufficient taxable income in the United States. The Company deducts the difference between the market value on date of exercise by the option recipient and the exercise price from income subject to taxation in the United States. |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 6 Months Ended |
Dec. 31, 2019 | |
(Loss) Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | 15 . (Loss) Earnings per share The Company has issued redeemable common stock which is redeemable at an amount other than fair value. Redemption of a class of common stock at other than fair value increases or decreases the carrying amount of the redeemable common stock and is reflected in basic earnings per share using the two-class method. There were no redemptions of common stock, or adjustments to the carrying value of the redeemable common stock during the three and six months ended December 31, 2019 or 2018 . Accordingly, the two -class method presented below does not include the impact of any redemption. The Company’s redeemable common stock is described in Note 15 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for t he year ended June 30, 2019 . Basic (loss) earnings per share includes shares of restricted stock that meet the definition of a participating security because these shares are eligible to receive non-forfeitable dividend equivalents at the s ame rate as common stock. Basic (loss) earnings per share has been calculated using the two-class method and basic (loss) earnings per share for the three and six months ended December 31, 2019 and 2018 , reflects only undistributed earnings. The computa tion below of basic (loss) earnings per share excludes the net loss attributable to shares of unvested restricted stock (participating non-vested restricted stock) from the numerator and excludes the dilutive impact of these unvested shares of restricted s tock from the denominator. Diluted (loss) earnings per share has been calculated to give effect to the number of shares of additional common stock that would have been outstanding if the potential dilutive instruments had been issued in each period. Stock options are included in the calculation of diluted (loss) earnings per share utilizing the treasury stock method and are not considered to be participating securities, as the stock options do not contain non-forfeitable dividend rights. 15 . (Loss) Earnings per share (continued) The calculation of diluted (loss) earnings per share includes the dilutive effect of a portion of the restricted stock granted to employees in August 2016, August 2017, March 2018, May 2018 and September 2018 as these shares of restricted stock are conside red contingently returnable shares for the purposes of the diluted (loss) earnings per share calculation and the vesting conditions in respect of a portion of the restricted stock had been satisfied. The vesting conditions for awards made in September 2018 and August 2017 are discussed in Note 14 above and the vesting conditions for all other awards are discussed in Note 17 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K f or the year ended June 30, 2019 . The following table presents net loss attributable to Net1 (loss from continuing operations) and the share data used in the basic and diluted (loss) earnings per share computations using the two-class metho d: Three months ended Six months ended December 31, December, 31 2019 2018 2019 2018 (in thousands except (in thousands except percent and percent and per share data) per share data) Numerator: Net loss attributable to Net1 $ (205) $ (63 941) $ (4 597) $ (69 140) Undistributed (loss) earnings (205) (63 941) (4 597) (69 140) Continuing (205) (65 469) (4 597) (72 614) Discontinued $ - $ 1 528 $ - $ 3 474 Percent allocated to common shareholders (Calculation 1) 99% 98% 99% 99% Numerator for (loss) earnings per share: basic and diluted (203) (62 972) (4 550) (68 146) Continuing (203) (64 477) (4 550) (71 570) Discontinued - 1 505 - 3 424 Denominator Denominator for basic (loss) earnings per share: weighted-average common shares outstanding 55 985 55 973 55 985 55 962 Stock options - 21 - 36 Denominator for diluted (loss) earnings per share: adjusted weighted average common shares outstanding and assuming conversion 55 985 55 994 55 985 55 998 (Loss) Earnings per share: Basic $ (0,00) $ (1,13) $ (0,08) $ (1,22) Continuing $ (0,00) $ (1,16) $ (0,08) $ (1,28) Discontinued $ - $ 0,03 $ - $ 0,06 Diluted $ (0,00) $ (1,12) $ (0,08) $ (1,22) Continuing $ (0,00) $ (1,15) $ (0,08) $ (1,28) Discontinued $ - $ 0,03 $ - $ 0,06 (Calculation 1) Basic weighted-average common shares outstanding (A) 55 985 55 973 55 985 55 962 Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B) 56 568 56 834 56 568 56 778 Percent allocated to common shareholders (A) / (B) 99% 98% 99% 99% Options to purchase 1,425,579 shares of the Company’s common stock at prices ranging from $3.07 to $11.23 per share were outstanding during the three and six months ended December 31, 2019, respectively, but were not included in the computation of diluted (loss) earnings per share bec ause the options’ exercise price was greater than the average market price of the Company’s common stock. Options to purchase 1,166,554 and 503,698 shares of the Company’s common stock at prices ranging from $6.20 to $13.16 per share and $8.75 to $13.16 pe r share were outstanding during the three and six months ended December 31, 2018, respectively, but were not included in the computation of diluted (loss) earnings per share because the options’ exercise price was greater than the average market price of t he Company’s common stock. The options, which expire at various dates through October 14, 2029, were still outstanding as of December 31, 2019. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 16 . Supplemental cash flow information The following table presents supplemental cash flow disclosures for the three and six months ended December 31, 2019 , and 2018 : Three months ended Six months ended December 31, December 31, 2019 2018 2019 2018 Cash received from interest $ 1 042 $ 1 285 $ 1 779 $ 3 362 Cash paid for interest $ 2 293 $ 2 588 $ 3 107 $ 5 654 Cash paid for income taxes $ 2 004 $ 8 779 $ 3 887 $ 10 122 Leases The following table presents supplemental cash flow disclosure related to leases for the three and six months ended December 31, 2019 : December 31, 2019 Three months ended Six months ended Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1 108 $ 2 028 Right-of-use assets obtained in exchange of lease obligations Operating leases $ 2 260 $ 2 490 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 17 . Revenue recognition Disaggregation of revenue The following table presents our revenue disaggregated by major revenue streams, including a reconciliation to operating segments for the three months ended December 31, 2019 : South Africa Korea Rest of the world Total South African transaction processing Processing fees $ 17 035 $ - $ - $ 17 035 Other 1 136 - - 1 136 Subtotal 18 171 - - 18 171 International transaction processing Processing fees - 32 000 851 32 851 Other - 1 512 - 1 512 Subtotal - 33 512 851 34 363 Financial inclusion and applied technologies Telecom products and services 6 639 - - 6 639 Account holder fees 3 103 - - 3 103 Lending revenue 5 384 - - 5 384 Technology products 5 042 - - 5 042 Insurance revenue 1 372 - - 1 372 Other 6 - - 6 Subtotal 21 546 - - 21 546 $ 39 717 $ 33 512 $ 851 $ 74 080 17 . Revenue recognition (continued) Disaggregation of revenue The following table presents our revenue disaggregated by major revenue streams, including a reconciliation to operating segments for the three months ended December 31, 2018 : South Africa Korea Rest of the world Total South African transaction processing Processing fees $ 19 031 $ - $ - $ 19 031 Other 1 772 - - 1 772 Subtotal 20 803 - - 20 803 International transaction processing Processing fees - 34 382 2 543 36 925 Other - 1 018 181 1 199 Subtotal - 35 400 2 724 38 124 Financial inclusion and applied technologies Telecom products and services 3 027 - - 3 027 Account holder fees 3 140 - - 3 140 Lending revenue 5 969 - - 5 969 Technology products 4 913 - - 4 913 Insurance revenue 1 306 - - 1 306 Other 160 - - 160 Subtotal 18 515 - - 18 515 $ 39 318 $ 35 400 $ 2 724 $ 77 442 The following table presents our revenue disaggregated by major revenue streams, including a reconciliation to operating segments for the six months ended December 31, 2019 : South Africa Korea Rest of the world Total South African transaction processing Processing fees $ 33 001 $ - $ - $ 33 001 Other 2 369 - - 2 369 Subtotal 35 370 - - 35 370 International transaction processing Processing fees - 63 197 2 050 65 247 Other - 3 133 - 3 133 Subtotal - 66 330 2 050 68 380 Financial services Telecom products and services 15 933 - - 15 933 Account holder fees 8 363 - - 8 363 Lending revenue 10 538 - - 10 538 Technology products 12 176 - - 12 176 Insurance revenue 2 758 - - 2 758 Other 1 318 - - 1 318 Subtotal 51 086 - - 51 086 $ 86 456 $ 66 330 $ 2 050 $ 154 836 17 . Revenue recognition (continued) Disaggregation of revenue (continued) The following table presents our revenue disaggregated by major revenue streams, including a reconciliation to operating segments for the six months ended December 31, 2018 : South Africa Korea Rest of the world Total South African transaction processing Processing fees $ 49 260 $ - $ - $ 49 260 Welfare benefit distributions 3 086 - - 3 086 Other 2 920 - - 2 920 Subtotal 55 266 - - 55 266 International transaction processing Processing fees - 68 971 5 198 74 169 Other - 2 980 362 3 342 Subtotal - 71 951 5 560 77 511 Financial services Telecom products and services 7 943 - - 7 943 Account holder fees 13 745 - - 13 745 Lending revenue 15 946 - - 15 946 Technology products 9 941 - - 9 941 Insurance revenue 3 821 - - 3 821 Other 366 - - 366 Subtotal 51 762 - - 51 762 $ 107 028 $ 71 951 $ 5 560 $ 184 539 |
Leases
Leases | 6 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 18 . Leases The Company elected to adopt the new lease guidance utilizing the modified retrospective approach therefore prior periods were not adjusted. The Company was not required to record a cumulative-effect adjustment to opening retained earnings as of July 1, 2019. The Company applied the package of three practical expedients available, which included the following ( i ) an entity need not reassess expired or existing contracts which are or contain leases (ii) an entity need not re assess the lease classification for any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected to not recognize right-of-use assets and lease liabilities for leases with a te rm of less than twelve months and to account for all components in a lease arrangement as a single combined lease component. The Company has entered into leasing arrangements classified as operating leases under accounting guidance. These leasing arrangem ents relate primarily to the lease of our corporate head office, administration offices and branch locations through which the Company operates its financial services business in South Africa. The Company’s operating leases have a remaining lease term of b etween one to f ive years . We also operate parts of our financial services business from locations which we lease for a period of less than one year . The Company’s operating lease expense during the three and six months ended December 31, 2019 , was $ 1 . 1 million and $ 2.0 million, respectively . The Company does not have any significant leases that have not commenced as of December 31, 2019. The following table presents supplemental balance sheet disclosure related to our right-of-use assets and our operat ing lease liabilities as of December 31, 2019 and July 1, 2019, the date of adoption of the new lease guidance (refer to Note 1 ): December 31, July 1, 2019 2019 Operating lease right-of-use $ 7 838 $ 6 739 Weighted average remaining lease term (years) 3,60 2,51 Weighted average discount rate 10% 10% Maturities of operating lease liabilities 2020 (for December 31, 2019 excluding six months to December 31, 2019) $ 2 334 $ 3 608 2021 3 281 2 395 2022 1 850 1 269 2023 1 011 454 2024 598 - Thereafter 204 - Total undiscounted operating lease liabilities 9 278 7 726 Less imputed interest 1 245 842 Total operating lease liabilities, included in 8 033 6 884 Operating lease right-of-use lease liability - current 3 534 5 098 Right-of-use operating lease liability - long-term $ 4 499 $ 1 786 |
Operating Segments
Operating Segments | 6 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
Operating Segments | 19 . Operating segment s The Company discloses segment information as reflected in the management information systems reports that its chief operating decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets or reports material revenues. A description of the Company’s operating segments is contained in Note 21 to the Company’s audited consolidated financial stat ements included in its Annual Report on Form 10-K for the year ended June 30, 2019 . As discussed in Note 22 , the Company has presented DNI as a discontinued operation. The reconciliation of the reportable segment’s revenue to reven ue from external customers for the three months ended December 31, 2019 and 2018 , is as follows: Revenue Reportable Segment Inter-segment From external customers South African transaction processing $ 20 350 $ 2 179 $ 18 171 International transaction processing 34 363 - 34 363 Financial services 21 986 440 21 546 Total for the three months ended December 31, 2019 $ 76 699 $ 2 619 $ 74 080 South African transaction processing $ 21 970 $ 1 167 $ 20 803 International transaction processing 38 124 - 38 124 Financial services 38 755 532 38 223 Continuing 19 047 532 18 515 Discontinued 19 708 - 19 708 Total for the three months ended December 31, 2018 98 849 1 699 97 150 Continuing 79 141 1 699 77 442 Discontinued $ 19 708 $ - $ 19 708 The reconciliation of the reportable segment’s revenue to revenue from external customers for the six months ended December 31, 2019 and 2018 , is as follows: Revenue Reportable Segment Inter-segment From external customers South African transaction processing $ 39 749 $ 4 379 $ 35 370 International transaction processing 68 380 - 68 380 Financial services 52 131 1 045 51 086 Total for the six months ended December 31, 2019 $ 160 260 $ 5 424 $ 154 836 South African transaction processing $ 59 719 $ 4 453 $ 55 266 International transaction processing 77 511 - 77 511 Financial services 91 961 1 704 90 257 Continuing 53 466 1 704 51 762 Discontinued 38 495 - 38 495 Total for the six months ended December 31, 2018 229 191 6 157 223 034 Continuing 190 696 6 157 184 539 Discontinued $ 38 495 $ - $ 38 495 The Company does not allocate interest income, interest expense or income tax expense to its reportable segments. The Company evaluates segment performance based on segment operating income before acquisition-related intangible asset amortization which represents operating income before acquisition-related intangible asset amortization and allocation of expenses alloc ated to Corporate/Eliminations, all under GAAP. The reconciliation of the reportable segments measures of profit or loss to income before income taxes for the three and six months ended December 31, 2019 and 2018 , is as follows: Three months ended Six months ended December 31, December 31, 2019 2018 2019 2018 Reportable segments measure of profit or loss $ (1 048) $ (34 411) $ 858 $ (23 860) Less: Discontinued operations: reportable segments measure of profit or loss - (8 429) - (16 261) Continuing operations: reportable segments measure of profit or loss (1 048) (42 840) 858 (40 121) Continuing operations : Operating income: Corporate/Eliminations (5 806) (6 061) (10 446) (13 066) Change in fair value of equity securities - (15 836) - (15 836) Gain on disposal of FIHRST 9 743 - 9 743 - Interest income 1 343 2 177 1 994 3 778 Interest expense (3 221) (2 563) (4 576) (5 121) Impairment of Cedar Cellular Note - (2 732) - (2 732) Income (Loss) before income taxes $ 1 011 $ (67 855) $ (2 427) $ (73 098) 19 . Operating segment s (continued) The following tables summarize segment information that is prepared in accordance with GAAP for the three and six months ended December 31, 2019 and 2018 , with the impact of the deconsolidation of DNI included in discontinued operations: Three months ended Six months ended December 31, December 31, 2019 2018 2019 2018 Revenues South African transaction processing $ 20 350 $ 21 970 $ 39 749 $ 59 719 International transaction processing 34 363 38 124 68 380 77 511 Financial services 21 986 38 755 52 131 91 961 Continuing 21 986 19 047 52 131 53 466 Discontinued - 19 708 - 38 495 Total 76 699 98 849 160 260 229 191 Continuing 76 699 79 141 160 260 190 696 Discontinued - 19 708 - 38 495 Operating (loss) income South African transaction processing (2 981) (11 830) (6 366) (15 343) International transaction processing 2 811 (4 043) 6 601 (1 281) Financial services (878) (18 538) 623 (7 236) Continuing (878) (26 967) 623 (23 497) Discontinued - 8 429 - 16 261 Subtotal: Operating segments (1 048) (34 411) 858 (23 860) Corporate/Eliminations (5 806) (8 664) (10 446) (18 319) Continuing (5 806) (6 061) (10 446) (13 066) Discontinued - (2 603) - (5 253) Total (6 854) (43 075) (9 588) (42 179) Continuing (6 854) (48 901) (9 588) (53 187) Discontinued - 5 826 - 11 008 Depreciation and amortization South African transaction processing 664 921 1 325 1 862 International transaction processing 1 481 2 511 3 377 5 570 Financial services 383 405 767 1 041 Continuing 383 346 767 695 Discontinued - 59 - 346 Subtotal: Operating segments 2 528 3 837 5 469 8 473 Corporate/Eliminations 1 853 6 016 3 677 12 174 Continuing 1 853 3 413 3 677 6 921 Discontinued - 2 603 - 5 253 Total 4 381 9 853 9 146 20 647 Continuing 4 381 7 191 9 146 15 048 Discontinued - 2 662 - 5 599 Expenditures for long-lived assets South African transaction processing 157 1 047 2 021 2 333 International transaction processing 616 841 1 293 1 641 Financial services 54 659 137 1 691 Continuing 54 475 137 1 368 Discontinued - 184 - 323 Subtotal: Operating segments 827 2 547 3 451 5 665 Corporate/Eliminations - - - - Total 827 2 547 3 451 5 665 Continuing 827 2 363 3 451 5 342 Discontinued $ - $ 184 $ - $ 323 19 . Operating segment s (continued) The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation and segment asset allocation is therefore not presented. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 20 . Income tax Income tax in interim periods For the purposes of interim financial reporting, the Company determines the appropriate income tax provision by first applying the effective tax rate expected to be applicable for the full fiscal year to ordinary income. This amount is then adjusted for th e tax effect of significant unusual items, for instance, changes in tax law, valuation allowances and non-deductible transaction-related expenses that are reported separately, and have an impact on the tax charge. The cumulative effect of any change in the enacted tax rate, if and when applicable, on the opening balance of deferred tax assets and liabilities is also included in the tax charge as a discrete event in the interim period in which the enactment date occurs. For the three and six months ended December 31, 2019 , the Company’s effective tax rate was impacted by the on-going losses incurred by certain of its South African businesses and the associated valuation allowances created related to the deferred tax assets recognized regarding net opera ting losses incurred by the Company’s South African businesses and non-deductible expenses, including transaction-related expenditure, which was partially offset by tax expense recorded by the Company’s profitable businesses in South Africa and South Korea . For the three and six months ended December 31, 2018 , the Company’s effective tax rate was adversely impacted by the valuation allowances created related to the deferred tax assets recognized regarding net operating losses incurred by the Company’s South Afr ican businesses, the non-deductible goodwill impairment losses, and non-deductible expenses, including transaction-related expenditure and non-deductible interest on its South African long-term debt facility, which was partially offset by tax expense recor ded by the Company’s profitable businesses in South Africa and South Korea. The deferred tax impact of the change in the fair value of the Company’s equity security also impacted the Company’s effective rate for fiscal 2019, as this amount is recorded at a lower rate (at a capital gains rate) than the South African statutory rate. Uncertain tax positions There were no significant changes in the Company’s uncertain tax positions during the three and six months ended December 31, 2019 . As of December 31, 2019 , the Company had accrued interest related to uncertain tax positions of approximately $0.1 million on its balance sheet. The Company does not expect changes related to its unrecognized tax benefits will have a significant impact on its results of operations or financial position in the next 12 months. As of December 31, 2019 and June 30, 2019 , the Company had unrecognized tax benefits of $1. 6 million and $1.2 million, respectively, all of which would impact the Company’s effective tax rate. The Company files income tax returns mainly in South Africa, South Korea, Germany, Hong Kong, India, the United Kingdom, Botswana and in the U.S. federal j urisdiction. As of December 31, 2019 , the Company’s South African subsidiaries are no longer subject to income tax examination by the South African Revenue Service for periods before June 30, 2016. The Company is subject to income tax in other juris dictions outside South Africa, none of which are individually material to its financial position, statement of cash flows, or results of operations |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 21 . Commitments and contingencies Guarantees The South African Revenue Service and certain of the Company’s customers, suppliers and other business partners have asked the Company to provide them with guarantees, including standby letters of credit, issued by a South African bank. The Company is requ ired to procure these guarantees for these third parties to operate its business. Nedbank has issued guarantees to these third parties amounting to ZAR 9 3 . 6 million ($6. 7 million, translated at exchange rates applicable as of December 31, 2019 ) an d thereby utilizing part of the Company’s short-term facility. The Company in turn has provided nonrecourse, unsecured counter-guarantees to Nedbank for ZAR 9 3 . 6 million ($6. 7 million, translated at exchange rates applicable as of December 31, 2019 ) . The Company pays commission of between 0.4% per annum to 1.94% per annum of the face value of these guarantees and does not recover any of the commission from third parties. The Company has not recognized any obligation related to these counter-guarant ees in its consolidated balance sheet as of December 31, 2019 . The maximum potential amount that the Company could pay under these guarantees is ZAR 9 3 . 6 million ($6. 7 million, translated at exchange rates applicable as of December 31, 2019 ) . The guarantees have reduced the amount available for borrowings under the Company’s short-term credit facility described in Note 10 . Contingencies The Company is subject to a variety of other insignificant claims and suits that arise from time to time in the ordinary course of business. Management currently believes that the resolution of these other matters, individually or in the aggregate, will not have a material adverse impact on the Company’s financial position, results of operations or cash flows. |
Discontinued Operations - DNI
Discontinued Operations - DNI | 6 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations [Abstract] | |
Discontinued Operations - DNI | 22 . Discontinued operation - DNI The Company determined that the disposal of its controlling interest in DNI is a discontinued operation because it represented a strategic shift that will have a major effect on the Company’s operations and financial results as a result of the sale of a significant portion of its investment in DNI. Refer to Note 3 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2019, for additio nal information regarding the deconsolidation of DNI. The table below presents certain major captions to the Company’s unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows for three and six months ended December 31, 2018, that have not been separately presented on those statements : DNI December 31, 2018 Three months ended Six months ended Unaudited condensed consolidated statement of operations Discontinued: Revenue $ 19 708 $ 38 495 Cost of goods sold, IT processing, servicing and support 9 954 20 166 Selling, general and administration 1 266 1 722 Depreciation and amortization 2 662 5 599 Operating income 5 826 11 008 Interest income 224 499 Interest expense 215 416 Net income before tax 5 835 11 091 Income tax expense 2 100 3 615 Net income before earnings from equity-accounted investments 3 735 7 476 Earnings from equity-accounted investments (1) 44 (58) Net income from discontinued operations $ 3 779 $ 7 418 Unaudited condensed consolidated statement of cash flows Discontinued: Total net cash (used in) provided by operating activities $ 10 546 $ 7 028 Total net cash (used in) provided by investing activities (172) (197) (1) Earnings from equity-accounted investments for the three and six months ended December 31, 2018, represents earnings attributed to equity-accounted investments owned by DNI and included in the Company’s results as a result of the consolidation of DNI. The Company retained a continuing involvement in DNI through its 30 % interest in DNI (refer to Note 7 ). The Company expects to retain an interest in DNI for less than 12 months. The Company recorded earnings under the equity method related to its retained investment in DNI during the three and six months ended December 31, 2019 , refe r to Note 7 . The table below presents revenues and expenses between the Company and DNI, after the DNI disposal transaction, during the three and six months ended December 31, 2019 : DNI December 31, 2019 Three months ended Six months ended Revenue generated from transactions with DNI $ - $ - Expenses incurred related to transactions with DNI $ 333 $ 2 607 Refer to Note 7 for the dividends received from DNI and accounted for under the equity method during the six months ended December 31, 2019 . |
Basis Of Presentation And Sum_2
Basis Of Presentation And Summary Of Significant Accounting Policies (Policy) | 6 Months Ended |
Dec. 31, 2019 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements include all majority-owned subsidiaries over which the Company exercises control and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission for Quarterly Reports on Form 10-Q an d include all of the information and disclosures required for interim financial reporting. The results of operations for the three and six months ended December 31, 2019 and 2018 , are not necessarily indicative of the results for the full yea r. The Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the financial statements, accounting policies and financial notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal re curring adjustments), which are necessary for a fair representation of financial results for the interim periods presented. References to the “Company” refer to Net1 and its consolidated subsidiaries, collectively, unless the context otherwise requires. References to “Net1” are references solely to Net 1 UEPS Technologies, Inc. |
Consideration Of Going Concern | Consideration of going concern Accounting guidance requires the Company’s management to assess whether there are conditions or events, considered in the aggregate, that raise su bstantial doubt about the Company’s ability to continue as a going concern within one year after its un audited condensed consolidated financial statements are issued. The Company’s management has identified certain conditions or events, which, considered i n the aggregate, could raise substantial doubt about the Company’s ability to continue as a going concern including the risk that the Company will be unable to: deli ver all or a substantial part of the financial results forecast in its fiscal 2020 budget; retain its existing borrowings and facilities, as described in Note 10 , or obtain additional borrowings and facilities on commercially reasonable terms; arrive at a commercial settlement with SASSA, given the September 30, 2019, Supreme Court of Appeal ruling regarding the repayment of the additional implementation costs received to SASSA (refer Note 11 ) and the ongoing dispute the Company has with SASSA over fees due for the six-month contract extension period in accordance with National Treasury’s recommendation; dispose of all or a portion of its remaining 30% interest in DNI-4PL Contracts Proprietary Limited (“DNI”) . DNI’s operations are also si gnificantly dependent on Cell C because it is the largest distributor of Cell C starter packs in South Africa. Therefore, the inability of Cell C to continue to operate through the next 12 months could also have an adverse impact on DNI’s operations; or di spose of additional investments in order to realize sufficient cash flows. The Company’s management has implemented a number of plans to alleviate the substantial doubt about the Company’s ability to continue as a going concern. These plans include dispos ing of its Korean business unit, KSNET, as announced in its press release of January 27, 2020, certain non-core assets ( refer to Note 3 to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2019, for additional information regarding a call option granted to DNI ) , and extending its existing borrowings used to fund its ATMs through September 2020. Provided the KSNET disposal closes, as expected, in March 2020, this is expected to remo ve the substantial doubt about the Company’s ability to continue as a going concern. In addition, the Company’s management believes it has a number of mitigating actions it can pursue, including (i) limiting the expansion of its microlending finance loan s receivable book in South Africa; (ii) implementing further cost cutting measures; (iii) commencing additional asset realizations; (iv) managing its capital expenditures; and (v) accessing alternative sources of capital (including through the issuance of additional shares of its common stock), in order to generate additional liquidity. The Company’s management believes that these plans and mitigating actions alleviate the substantial doubt referred to above and therefore have concluded that the Company rem ains a going concern. |
Recent Accounting Pronouncements Adopted | Recent accounting pronouncements adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued guidance regarding Leases . The guidance increases transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. The amendments to current lease guidance include the recognition of assets and liabilities by lessees for those leases currently classified as operating leases. The guidance also requires disclosures to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Th is guidance was effective for the Company beginning July 1, 2019. Refer to Note 18 for the impact of the adoption of this guidance on our condensed consolidated financial statements. |
Recent Accounting Pronouncements Not Yet Adopted As Of December 31, 2019 | Recent accounting pronouncements not yet adopted as of December 31, 2019 In June 2016, the FASB issued guidance regarding Measurement of Credit Losses on Financial Instruments . The guidance replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires cons ideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, an entity is required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amor tized cost basis of the securities. This guidance is effective for the Company beginning July 1, 2020. Early adoption is permitted beginning July 1, 2019. The Company is currently assessing the impact of this guidance on its financial statements and relate d disclosures. In August 2018, the FASB issued guidance regarding Disclosure Framework: Changes to the Disclosure Requirements for Fair Value Measurement. The guidance modifies the disclosure requirements related to fair value measurement. This guidance i s effective for the Company beginning July 1, 2020. Early adoption is permitted. The Company is currently assessing the impact of this guidance on its financial statements disclosure. |
Disposal Of Controlling Inter_2
Disposal Of Controlling Interest In FIHRST And KSNET (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Disposal Of Controlling Interest In FIHRST And KSNET [Abstract] | |
Impact Of Deconsolidation Of FIHRST And Calculation Of Net Loss Recognized On Deconsolidation | Total Fair value of consideration received $ 11 749 Less: carrying value of FIHRST, comprising 1 870 Cash and cash equivalents 854 Accounts receivable, net 367 Property, plant and equipment, net 64 Goodwill (Note 8) 599 Intangible assets, net 30 Deferred income taxes assets 42 Accounts payable (7) Other payables (1 437) Income taxes payable (220) Released from accumulated other comprehensive income – foreign currency translation reserve (Note 13) 1 578 Settlement assets 17 406 Settlement liabilities (17 406) Gain recognized on disposal, before tax 9 879 Taxes related to gain recognized on disposal, comprising: - Capital gains tax 2 418 Release of valuation allowance related to capital gains tax previously unutilized (1) (2 418) Transaction costs 136 Gain recognized on disposal, after tax $ 9 743 (1) Net1 SA recorded a valuation allowance related to capital losses previously generated but not utilized. A portion of these unutilized capital losses w as utilized as a result of the disposal of FIHRST and , therefore , the equivalent portion of the valuation allowance created was released. |
Accounts Receivable, Net And _2
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable, Net And Other Receivables | December 31, June 30, 2019 2019 Accounts receivable, trade, net $ 26 568 $ 25 136 Accounts receivable, trade, gross 27 312 26 377 Allowance for doubtful accounts receivable, end of period 744 1 241 Beginning of period 1 241 1 101 Reversed to statement of operations (535) (24) Charged to statement of operations 108 3 296 Utilized (58) (3 059) Deconsolidated - (38) Foreign currency adjustment (12) (35) Current portion of cash payments to agents in South Korea that are amortized over the contract period 11 927 15 543 Cash payments to agents in South Korea that are amortized over the contract period 18 457 25 107 Less: cash payments to agents in South Korea that are amortized over the contract period included in other long-term assets (Note 7) 6 530 9 564 Loans provided to Carbon 3 000 3 000 Loan provided to DNI - 4 260 Other receivables 27 070 24 555 Total accounts receivable, net $ 68 565 $ 72 494 |
Schedule Of Finance Loans Receivable, Net | December 31, June 30, 2019 2019 Microlending finance loans receivable, net $ 14 504 $ 20 981 Microlending finance loans receivable, gross 17 091 24 180 Allowance for doubtful finance loans receivable, end of period 2 587 3 199 Beginning of period 3 199 4 239 Reversed to statement of operations (601) - Charged to statement of operations 1 081 28 802 Utilized (1 085) (29 721) Foreign currency adjustment (7) (121) Working capital finance loans receivable, gross 14 613 9 650 Working capital finance loans receivable, gross 20 736 15 742 Allowance for doubtful finance loans receivable, end of period 6 123 6 092 Beginning of period 6 092 12 164 Charged to statement of operations 30 712 Utilized - (6 777) Foreign currency adjustment 1 (7) Total accounts receivable, net $ 29 117 $ 30 631 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Inventory [Abstract] | |
Schedule Of Inventory | December 31, June 30, 2019 2019 Finished goods $ 7 538 $ 7 535 Finished goods subject to sale restrictions 13 658 - $ 21 196 $ 7 535 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Fair Value Of Financial Instruments [Abstract] | |
Schedule Of Key Valuation Inputs Used To Measure Fair Value Of Investment In Cell C | Weighted Average Cost of Capital: Between 15% and 20% over the period of the forecast Long term growth rate: 3 % (4,5% as of June 30, 2019) Marketability discount: 10% Minority discount: 15% Net adjusted external debt - December 31, 2019: (1) ZAR 16,4 billion ($1,2 billion), includes R6 billion of lease liabilities Net adjusted external debt - June 30, 2019: (2) ZAR 13,9 billion ($1,0 billion), includes R6,4 billion of lease liabilities Deferred tax (incl, assessed tax losses) - December 31, 2019: (1) ZAR 2,9 billion ($206,4 million) Deferred tax (incl, assessed tax losses) - June 30, 2019: (2) ZAR 2,9 billion ($205,9 million) (1) translated from ZAR to U.S. dollars at exchange rates applicable as of December 31, 2019. (2) translated from ZAR to U.S. dollars at exchange rates applicable as of June 30, 2019. |
Schedule Of Impact On Carrying Value Of Cell C Investment | Sensitivity for fair value of Cell C investment 2.0% increase(A) 2.0% decrease(A) WACC rate $ - $ 8 238 EBITDA margin $ 1 687 $ - (A) the carrying value of the Cell C investment is not impacted by a 1.0% increase or a 1.0% decrease and therefore the impact of a 2.0% increase and a 2.0% decrease is presented. |
Fair Value Of Assets And Liabilities Measured On Recurring Basis | Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Investment in Cell C $ - $ - $ - $ - Related to insurance business: Cash, cash equivalents and restricted cash (included in other long term assets) 587 - - 587 Fixed maturity investments (included in cash and cash equivalents) 2 845 - - 2 845 Other - 414 - 414 Total assets at fair value $ 3 432 $ 414 $ - $ 3 846 Quoted Price in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets Investment in Cell C $ - $ - $ - $ - Related to insurance business Cash and cash equivalents (included in other long-term assets) 619 - - 619 Fixed maturity investments (included in cash and cash equivalents) 5 201 - - 5 201 Other - 413 - 413 Total assets at fair value $ 5 820 $ 413 $ - $ 6 233 |
Carrying Value Of Assets And Liabilities Measured On Recurring Basis | Carrying value Assets Balance as of June 30, 2019 - Foreign currency adjustment (1) - Balance as of December 31, 2019 $ - (1) The foreign currency adjustment represents the effects of the fluctuations of the South African rand and the U.S. dollar on the carrying value. Carrying value Assets Balance as at June 30, 2018 172 948 Realized losses (15 836) Foreign currency adjustment (1) (8 054) Balance as of December 31, 2018 149 058 Liabilities Balance as at June 30, 2018 27 222 Accretion of interest 835 Foreign currency adjustment (1) (1 267) Balance as of December 31, 2018 26 790 (1) The foreign currency adjustment represents the effects of the fluctuations of the South African rand and the U.S. dollar on the carrying value. |
Equity-Accounted Investments _2
Equity-Accounted Investments And Other Long-Term Assets (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Equity-Accounted Investments And Other Long-Term Assets [Abstract] | |
Ownership Percentage Of Equity-Accounted Investments | December 31, June 30, 2019 2019 Bank Frick & Co AG (“Bank Frick”) 35% 35% DNI 30% 30% Finbond Group Limited (“Finbond”) 29% 29% Carbon Tech Limited (“Carbon”), formerly OneFi Limited 25% 25% Revix (“Revix”) 25% - SmartSwitch Namibia (Pty) Ltd (“SmartSwitch Namibia”) 50% 50% V2 Limited (“V2”) 50% 50% Walletdoc Proprietary Limited (“Walletdoc”) 20% 20% |
Summary Of Movement In Equity-Accounted Investments | DNI Bank Frick Finbond Other (1) Total Investment in equity Balance as of June 30, 2019 $ 61 030 $ 47 240 $ 35 300 $ 7 398 $ 150 968 Acquisition of shares - - 274 1 250 1 524 Stock-based compensation - - 71 - 71 Comprehensive income (loss): 1 108 469 2 718 (499) 3 796 Other comprehensive loss - - 2 227 - 2 227 Equity accounted earnings (loss) 1 108 469 491 (499) 1 569 Share of net income 3 113 755 491 (499) 3 860 Amortization of acquired intangible assets (1 292) (376) - - (1 668) Deferred taxes on acquired intangible assets 361 90 - - 451 Impairment (1 074) - - - (1 074) Dividends received (1 110) - (274) (338) (1 722) Foreign currency adjustment (2) 137 453 300 (48) 842 Balance as of December 31, 2019 $ 61 165 $ 48 162 $ 38 389 $ 7 763 $ 155 479 Investment in loans: Balance as of June 30, 2019 $ - $ - $ - $ 148 $ 148 Loans granted - - - 612 612 Allowance for doubtful loans - - - (620) (620) Foreign currency adjustment (2) - - - 8 8 Balance as of December 31, 2019 $ - $ - $ - $ 148 $ 148 Equity Loans Total Carrying amount as of : June 30, 2019 $ 150 968 $ 148 $ 151 116 December 31, 2019 $ 155 479 $ 148 155 627 (1) Includes primarily Carbon, SmartSwitch Namibia, V2 and Walletdoc; (2) The foreign currency adjustment represents the effects of the fluctuations of the South African rand, Swiss franc, Nigerian naira and Namibian dollar, and the U.S. dollar on the carrying value. |
Summary Of Other Long-Term Asset | December 31, June 30, 2019 2019 Total equity investments $ 26 993 $ 26 993 Investment in 15% of Cell C, at fair value (Note 6) - - Investment in 13% of MobiKwik 26 993 26 993 Total held to maturity investments - - Investment in 7.625% of Cedar Cellular Investment 1 (RF) (Pty) Ltd 8.625% notes - - Long-term portion of payments to agents in South Korea amortized over the contract period (Note 3) 6 530 9 564 Policy holder assets under investment contracts (Note 9) 587 619 Reinsurance assets under insurance contracts (Note 9) 1 159 1 163 Other long-term assets 5 875 5 850 Total other long-term assets $ 41 144 $ 44 189 |
Summary Of Unrealized Gain (Loss) On Investments | Cost basis Unrealized holding Unrealized holding Carrying gains losses value Equity securities: Investment in Mobikwik $ 26 993 $ - $ - $ 26 993 Held to maturity: Investment in Cedar Cellular notes - - - - Total $ 26 993 $ - $ - $ 26 993 Cost basis Unrealized holding Unrealized holding Carrying gains losses value Equity securities: Investment in MobiKwik $ 26 993 $ - $ - $ - Held to maturity: Investment in Cedar Cellular notes - - - - Total $ 26 993 $ - $ - $ - |
Summary Of Contractual Maturity Of Investment | Cost basis Estimated fair value (1) Due in one year or less $ - $ - Due in one year through five years (2) - - Due in five years through ten years - - Due after ten years - - (1) The estimated fair value of the Cedar Cellular note has been calculated utilizing the Company’s portion of the security provided to the Company by Cedar Cellular, namely, Cedar Cellular’s investment in Cell C. (2) The cost basis is zero ($0.0 million). |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets, Net (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets, Net [Abstract] | |
Summary Of Movement In Carrying Value Of Goodwill | Gross value Accumulated impairment Carrying value Balance as of June 30, 2019 $ 184 544 $ (35 157) $ 149 387 Disposal of FIHRST (Note 2) (599) - (599) Foreign currency adjustment (1) 122 28 150 Balance as of December 31, 2019 $ 184 067 $ (35 129) $ 148 938 (1) – The foreign currency adjustment represents the effects of the fluctuations between the South African rand, the Euro and the Korean won, and the U.S. dollar on the carrying value. |
Goodwill Allocated To Reportable Segments | South African transaction processing International transaction processing Financial inclusion and applied technologies Carrying value Balance as of June 30, 2019 $ 19 208 $ 112 728 $ 17 451 $ 149 387 Disposal of FIHRST (Note 2) (599) - - (599) Foreign currency adjustment (1) 23 83 44 150 Balance as of December 31, 2019 $ 18 632 $ 112 811 $ 17 495 $ 148 938 (1) – The foreign currency adjustment represents the effects of the fluctuations between the South African rand, the Euro and the Korean won, and the U.S. dollar on the carrying value. |
Carrying Value And Accumulated Amortization Of Intangible Assets | As of December 31, 2019 As of June 30, 2019 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Finite-lived intangible assets: Customer relationships $ 95 792 $ (89 273) $ 6 519 $ 96 653 $ (86 285) $ 10 368 Software and unpatented technology 28 883 (28 598) 285 32 071 (31 829) 242 FTS patent 2 727 (2 727) - 2 721 (2 721) - Trademarks 6 784 (6 307) 477 6 772 (6 265) 507 Total finite-lived intangible assets 134 186 (126 905) 7 281 138 217 (127 100) 11 117 Infinite-lived intangible assets: Financial institution licenses 762 - 762 772 - 772 Total infinite-lived intangible assets 762 - 762 772 - 772 Total intangible assets $ 134 948 $ (126 905) $ 8 043 $ 138 989 $ (127 100) $ 11 889 |
Future Estimated Annual Amortization Expense | Fiscal 2020 $ 7 919 Fiscal 2021 2 807 Fiscal 2022 73 Fiscal 2023 73 Fiscal 2024 72 Thereafter 145 Total future estimated annual amortization expense $ 11 089 |
Assets And Policy Holder Liab_2
Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | |
Summary Of The Movement In Reinsurance Assets And Policyholder Liabilities Under Insurance Contracts | Reinsurance Assets (1) Insurance contracts (2) Balance as of June 30, 2019 $ 1 163 $ (1 880) Increase in policy holder benefits under insurance contracts 220 (3 232) Claims and policyholders’ benefits under insurance contracts (227) 3 201 Foreign currency adjustment (3) 3 (5) Balance as of December 31, 2019 $ 1 159 $ (1 916) (1) Included in other long-term assets. (2) Included in other long-term liabilities. (3) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. |
Summary Of Movement In Assets And Policyholder Liabilities Under Investment Contracts | Assets (1) Investment contracts (2) Balance as of June 30, 2019 $ 619 $ (619) Increase in policy holder benefits under investment contracts 2 (2) Claims and policyholders’ benefits under investment contracts (36) 36 Foreign currency adjustment (3) 2 (2) Balance as of December 31, 2019 $ 587 $ (587) (1) Included in other long-term assets. (2) Included in other long-term liabilities. (3) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Summary Of Short-Term Credit Facilities | South Africa United States South Korea Total Amended July 2017 Nedbank Bank Frick Hana Short-term facilities available as of December 31, 2019 $ 85 419 $ 32 032 $ 20 000 $ 8 654 $ 146 105 Overdraft - 3 559 20 000 8 654 32 213 Overdraft restricted as to use for ATM funding only 85 419 17 796 - - 103 215 Indirect and derivative facilities - 10 677 - - 10 677 Movement in utilized overdraft facilities: Balance as of June 30, 2019 69 566 5 880 9 544 - 84 990 Utilized 349 466 33 722 8 362 - 391 550 Repaid (346 525) (28 029) (4 000) - (378 554) Foreign currency adjustment (1) 157 123 - - 280 Balance as of December 31, 2019 (2) 72 664 11 696 13 906 - 98 266 Restricted as to use for ATM funding only 72 664 11 696 - - 84 360 No restrictions as to use - - 13 906 - 13 906 Movement in utilized i ndirect and derivative facilities: Balance as of June 30, 2019 - 6 643 - - 6 643 Foreign currency adjustment (1) - 17 - - 17 Balance as of December 31, 2019 $ - $ 6 660 $ - $ - $ 6 660 (1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. (2) Nedbank balance as of December 31, 2019, of $11.7 million comprises the net of total overdraft facilities withdrawn of $14.4 million offset against funds in bank accounts with Nedbank of $2.7 million. |
Summary Of Long-Term Borrowings | South Africa Amended July 2017 Total Balance as of June 30, 2019 $ - $ - Current portion of long-term borrowings - - Long-term borrowings - - Utilized 14 798 14 798 Repaid (11 313) (11 313) Foreign currency adjustment (1) 578 578 Balance as of December 31, 2019 4 063 4 063 Current portion of long-term borrowings 4 063 4 063 Long-term borrowings $ - $ - (1) Represents the effects of the fluctuations between the ZAR and the U.S. dollar. |
Other Payables (Tables)
Other Payables (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Other Payables [Abstract] | |
Schedule Of Other Payables | December 31, June 30, 2019 2019 Accrual of implementation costs to be refunded to SASSA $ 35 270 $ 34 039 Accruals 15 376 10 620 Provisions 4 390 6 074 Other 8 801 10 814 Value-added tax payable 3 624 3 234 Payroll-related payables 1 131 1 113 Participating merchants settlement obligation 542 555 $ 69 134 $ 66 449 |
Capital Structure (Tables)
Capital Structure (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Capital Structure [Abstract] | |
Schedule Of Number Of Shares, Net Of Treasury | December 31, December 31, 2019 2018 Number of shares, net of treasury: Statement of changes in equity 56 568 425 56 833 925 Non-vested equity shares that have not vested as of end of period 583 908 860 817 Number of shares, net of treasury, excluding non-vested equity shares that have not vested 55 984 517 55 973 108 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Change In Accumulated Other Comprehensive (Loss) Income Per Component | Three months ended December 31, 2019 Accumulated foreign currency translation reserve Total Balance as of October 1, 2019 $ (214 640) $ (214 640) Release of foreign currency translation reserve related to disposal of FIHRST (Note 2) 1 578 1 578 Movement in foreign currency translation reserve related to equity-accounted investment (491) (491) Movement in foreign currency translation reserve 19 114 19 114 Balance as of December 31, 2019 $ (194 439) $ (194 439) Three months ended December 31, 2018 Accumulated foreign currency translation reserve Total Balance as of October 1, 2018 $ (189 630) $ (189 630) Movement in foreign currency translation reserve (8 744) (8 744) Balance as of December 31, 2018 $ (198 374) $ (198 374) Six months ended December 31, 2019 Accumulated foreign currency translation reserve Total Balance as of July 1, 2019 $ (199 273) $ (199 273) Release of foreign currency translation reserve related to disposal of FIHRST (Note 2) 1 578 1 578 Movement in foreign currency translation reserve related to equity-accounted investment 2 227 2 227 Movement in foreign currency translation reserve 1 029 1 029 Balance as of December 31, 2019 $ (194 439) $ (194 439) Six months ended December 31, 2018 Accumulated foreign currency translation reserve Total Balance as of July 1, 2018 $ (184 538) $ (184 538) Movement in foreign currency translation reserve related to equity-accounted investment 5 430 5 430 Movement in foreign currency translation reserve (19 266) (19 266) Balance as of December 31, 2018 $ (198 374) $ (198 374) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Summarized Stock Option Activity | Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Aggregate intrinsic value ($'000) Weighted average grant date fair value ($) Outstanding - June 30, 2019 864 579 7,81 7,05 - 2,62 Granted - September 2019 561 000 3,07 10,00 676 1,20 Outstanding - December 31, 2019 1 425 579 5,94 7,81 365 2,07 Outstanding - June 30, 2018 809 274 13,99 2,67 370 4,20 Granted – September 2018 600 000 6,20 10,00 1 212 2,02 Forfeited (200 000) 24,46 - - 7,17 Outstanding - December 31, 2018 1 209 274 8,41 6,15 72 2,62 Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Aggregate intrinsic value ($’000) Vested and expecting to vest - December 31, 2019 1 425 579 5,94 7,81 365 Number of shares Weighted average exercise price ($) Weighted average remaining contractual term (in years) Exercisable - December 31, 2019 523 914 8,86 5,52 |
Range Of Assumptions Used To Value Options Granted | Six months ended December 31, 2019 2018 Expected volatility 57% 44% Expected dividends 0% 0% Expected life (in years) 3 3 Risk-free rate 1,57% 2,75% |
Restricted Stock Activity | Number of shares of restricted stock Weighted average grant date fair value ($’000) Non-vested – June 30, 2019 583 908 3 410 Non-vested – December 31, 2019 583 908 3 410 Non-vested – June 30, 2018 765 411 6 162 Granted – September 2018 148 000 114 Vested - August 2018 (52 594) 459 Non-vested – December 31, 2018 860 817 5 785 |
Recorded Net Stock Compensation Charge | Allocated to cost of goods sold, Allocated to IT processing, selling, general Total servicing and and charge support administration Three months ended December 31, 2019 Stock-based compensation charge $ 436 $ - $ 436 Total - three months ended December 31, 2019 $ 436 $ - $ 436 Three months ended December 31, 2018 Stock-based compensation charge $ 598 $ - $ 598 Total - three months ended December 31, 2018 $ 598 $ - $ 598 Allocated to cost of goods sold, Allocated to IT processing, selling, general Total servicing and and charge support administration Six months ended December 31, 2019 Stock-based compensation charge $ 823 $ - $ 823 Total - Six months ended December 31, 2019 $ 823 $ - $ 823 Six months ended December 31, 2018 Stock-based compensation charge $ 1 185 $ - $ 1 185 Total - Six months ended December 31, 2018 $ 1 185 $ - $ 1 185 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
(Loss) Earnings Per Share [Abstract] | |
Income From Continuing Operations And Share Data Used In Basic And Diluted Earnings Per Share Computations | Three months ended Six months ended December 31, December, 31 2019 2018 2019 2018 (in thousands except (in thousands except percent and percent and per share data) per share data) Numerator: Net loss attributable to Net1 $ (205) $ (63 941) $ (4 597) $ (69 140) Undistributed (loss) earnings (205) (63 941) (4 597) (69 140) Continuing (205) (65 469) (4 597) (72 614) Discontinued $ - $ 1 528 $ - $ 3 474 Percent allocated to common shareholders (Calculation 1) 99% 98% 99% 99% Numerator for (loss) earnings per share: basic and diluted (203) (62 972) (4 550) (68 146) Continuing (203) (64 477) (4 550) (71 570) Discontinued - 1 505 - 3 424 Denominator Denominator for basic (loss) earnings per share: weighted-average common shares outstanding 55 985 55 973 55 985 55 962 Stock options - 21 - 36 Denominator for diluted (loss) earnings per share: adjusted weighted average common shares outstanding and assuming conversion 55 985 55 994 55 985 55 998 (Loss) Earnings per share: Basic $ (0,00) $ (1,13) $ (0,08) $ (1,22) Continuing $ (0,00) $ (1,16) $ (0,08) $ (1,28) Discontinued $ - $ 0,03 $ - $ 0,06 Diluted $ (0,00) $ (1,12) $ (0,08) $ (1,22) Continuing $ (0,00) $ (1,15) $ (0,08) $ (1,28) Discontinued $ - $ 0,03 $ - $ 0,06 (Calculation 1) Basic weighted-average common shares outstanding (A) 55 985 55 973 55 985 55 962 Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B) 56 568 56 834 56 568 56 778 Percent allocated to common shareholders (A) / (B) 99% 98% 99% 99% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule Of Supplemental Cash Flow Disclosures | Three months ended Six months ended December 31, December 31, 2019 2018 2019 2018 Cash received from interest $ 1 042 $ 1 285 $ 1 779 $ 3 362 Cash paid for interest $ 2 293 $ 2 588 $ 3 107 $ 5 654 Cash paid for income taxes $ 2 004 $ 8 779 $ 3 887 $ 10 122 |
Supplemental Cash Flow Disclosure Related To Leases | December 31, 2019 Three months ended Six months ended Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1 108 $ 2 028 Right-of-use assets obtained in exchange of lease obligations Operating leases $ 2 260 $ 2 490 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Disaggregated By Major Revenue Streams | South Africa Korea Rest of the world Total South African transaction processing Processing fees $ 17 035 $ - $ - $ 17 035 Other 1 136 - - 1 136 Subtotal 18 171 - - 18 171 International transaction processing Processing fees - 32 000 851 32 851 Other - 1 512 - 1 512 Subtotal - 33 512 851 34 363 Financial inclusion and applied technologies Telecom products and services 6 639 - - 6 639 Account holder fees 3 103 - - 3 103 Lending revenue 5 384 - - 5 384 Technology products 5 042 - - 5 042 Insurance revenue 1 372 - - 1 372 Other 6 - - 6 Subtotal 21 546 - - 21 546 $ 39 717 $ 33 512 $ 851 $ 74 080 South Africa Korea Rest of the world Total South African transaction processing Processing fees $ 19 031 $ - $ - $ 19 031 Other 1 772 - - 1 772 Subtotal 20 803 - - 20 803 International transaction processing Processing fees - 34 382 2 543 36 925 Other - 1 018 181 1 199 Subtotal - 35 400 2 724 38 124 Financial inclusion and applied technologies Telecom products and services 3 027 - - 3 027 Account holder fees 3 140 - - 3 140 Lending revenue 5 969 - - 5 969 Technology products 4 913 - - 4 913 Insurance revenue 1 306 - - 1 306 Other 160 - - 160 Subtotal 18 515 - - 18 515 $ 39 318 $ 35 400 $ 2 724 $ 77 442 South Africa Korea Rest of the world Total South African transaction processing Processing fees $ 33 001 $ - $ - $ 33 001 Other 2 369 - - 2 369 Subtotal 35 370 - - 35 370 International transaction processing Processing fees - 63 197 2 050 65 247 Other - 3 133 - 3 133 Subtotal - 66 330 2 050 68 380 Financial services Telecom products and services 15 933 - - 15 933 Account holder fees 8 363 - - 8 363 Lending revenue 10 538 - - 10 538 Technology products 12 176 - - 12 176 Insurance revenue 2 758 - - 2 758 Other 1 318 - - 1 318 Subtotal 51 086 - - 51 086 $ 86 456 $ 66 330 $ 2 050 $ 154 836 South Africa Korea Rest of the world Total South African transaction processing Processing fees $ 49 260 $ - $ - $ 49 260 Welfare benefit distributions 3 086 - - 3 086 Other 2 920 - - 2 920 Subtotal 55 266 - - 55 266 International transaction processing Processing fees - 68 971 5 198 74 169 Other - 2 980 362 3 342 Subtotal - 71 951 5 560 77 511 Financial services Telecom products and services 7 943 - - 7 943 Account holder fees 13 745 - - 13 745 Lending revenue 15 946 - - 15 946 Technology products 9 941 - - 9 941 Insurance revenue 3 821 - - 3 821 Other 366 - - 366 Subtotal 51 762 - - 51 762 $ 107 028 $ 71 951 $ 5 560 $ 184 539 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Supplemental Balance Sheet Disclosure Related To Right-of-use Assets And Operating Leases Liabilities | December 31, July 1, 2019 2019 Operating lease right-of-use $ 7 838 $ 6 739 Weighted average remaining lease term (years) 3,60 2,51 Weighted average discount rate 10% 10% Maturities of operating lease liabilities 2020 (for December 31, 2019 excluding six months to December 31, 2019) $ 2 334 $ 3 608 2021 3 281 2 395 2022 1 850 1 269 2023 1 011 454 2024 598 - Thereafter 204 - Total undiscounted operating lease liabilities 9 278 7 726 Less imputed interest 1 245 842 Total operating lease liabilities, included in 8 033 6 884 Operating lease right-of-use lease liability - current 3 534 5 098 Right-of-use operating lease liability - long-term $ 4 499 $ 1 786 |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
Reconciliation Of Reportable Segments Revenue | Revenue Reportable Segment Inter-segment From external customers South African transaction processing $ 20 350 $ 2 179 $ 18 171 International transaction processing 34 363 - 34 363 Financial services 21 986 440 21 546 Total for the three months ended December 31, 2019 $ 76 699 $ 2 619 $ 74 080 South African transaction processing $ 21 970 $ 1 167 $ 20 803 International transaction processing 38 124 - 38 124 Financial services 38 755 532 38 223 Continuing 19 047 532 18 515 Discontinued 19 708 - 19 708 Total for the three months ended December 31, 2018 98 849 1 699 97 150 Continuing 79 141 1 699 77 442 Discontinued $ 19 708 $ - $ 19 708 Revenue Reportable Segment Inter-segment From external customers South African transaction processing $ 39 749 $ 4 379 $ 35 370 International transaction processing 68 380 - 68 380 Financial services 52 131 1 045 51 086 Total for the six months ended December 31, 2019 $ 160 260 $ 5 424 $ 154 836 South African transaction processing $ 59 719 $ 4 453 $ 55 266 International transaction processing 77 511 - 77 511 Financial services 91 961 1 704 90 257 Continuing 53 466 1 704 51 762 Discontinued 38 495 - 38 495 Total for the six months ended December 31, 2018 229 191 6 157 223 034 Continuing 190 696 6 157 184 539 Discontinued $ 38 495 $ - $ 38 495 |
Reconciliation Of Reportable Segments Measure Of Profit Or Loss To Income | Three months ended Six months ended December 31, December 31, 2019 2018 2019 2018 Reportable segments measure of profit or loss $ (1 048) $ (34 411) $ 858 $ (23 860) Less: Discontinued operations: reportable segments measure of profit or loss - (8 429) - (16 261) Continuing operations: reportable segments measure of profit or loss (1 048) (42 840) 858 (40 121) Continuing operations : Operating income: Corporate/Eliminations (5 806) (6 061) (10 446) (13 066) Change in fair value of equity securities - (15 836) - (15 836) Gain on disposal of FIHRST 9 743 - 9 743 - Interest income 1 343 2 177 1 994 3 778 Interest expense (3 221) (2 563) (4 576) (5 121) Impairment of Cedar Cellular Note - (2 732) - (2 732) Income (Loss) before income taxes $ 1 011 $ (67 855) $ (2 427) $ (73 098) |
Summary Of Segment Information | Three months ended Six months ended December 31, December 31, 2019 2018 2019 2018 Revenues South African transaction processing $ 20 350 $ 21 970 $ 39 749 $ 59 719 International transaction processing 34 363 38 124 68 380 77 511 Financial services 21 986 38 755 52 131 91 961 Continuing 21 986 19 047 52 131 53 466 Discontinued - 19 708 - 38 495 Total 76 699 98 849 160 260 229 191 Continuing 76 699 79 141 160 260 190 696 Discontinued - 19 708 - 38 495 Operating (loss) income South African transaction processing (2 981) (11 830) (6 366) (15 343) International transaction processing 2 811 (4 043) 6 601 (1 281) Financial services (878) (18 538) 623 (7 236) Continuing (878) (26 967) 623 (23 497) Discontinued - 8 429 - 16 261 Subtotal: Operating segments (1 048) (34 411) 858 (23 860) Corporate/Eliminations (5 806) (8 664) (10 446) (18 319) Continuing (5 806) (6 061) (10 446) (13 066) Discontinued - (2 603) - (5 253) Total (6 854) (43 075) (9 588) (42 179) Continuing (6 854) (48 901) (9 588) (53 187) Discontinued - 5 826 - 11 008 Depreciation and amortization South African transaction processing 664 921 1 325 1 862 International transaction processing 1 481 2 511 3 377 5 570 Financial services 383 405 767 1 041 Continuing 383 346 767 695 Discontinued - 59 - 346 Subtotal: Operating segments 2 528 3 837 5 469 8 473 Corporate/Eliminations 1 853 6 016 3 677 12 174 Continuing 1 853 3 413 3 677 6 921 Discontinued - 2 603 - 5 253 Total 4 381 9 853 9 146 20 647 Continuing 4 381 7 191 9 146 15 048 Discontinued - 2 662 - 5 599 Expenditures for long-lived assets South African transaction processing 157 1 047 2 021 2 333 International transaction processing 616 841 1 293 1 641 Financial services 54 659 137 1 691 Continuing 54 475 137 1 368 Discontinued - 184 - 323 Subtotal: Operating segments 827 2 547 3 451 5 665 Corporate/Eliminations - - - - Total 827 2 547 3 451 5 665 Continuing 827 2 363 3 451 5 342 Discontinued $ - $ 184 $ - $ 323 |
Discontinued Operations - DNI (
Discontinued Operations - DNI (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations [Abstract] | |
Impact Of Deconsolidation Of DNI And Calculation Of Net Loss Recognized On Deconsolidation | DNI December 31, 2018 Three months ended Six months ended Unaudited condensed consolidated statement of operations Discontinued: Revenue $ 19 708 $ 38 495 Cost of goods sold, IT processing, servicing and support 9 954 20 166 Selling, general and administration 1 266 1 722 Depreciation and amortization 2 662 5 599 Operating income 5 826 11 008 Interest income 224 499 Interest expense 215 416 Net income before tax 5 835 11 091 Income tax expense 2 100 3 615 Net income before earnings from equity-accounted investments 3 735 7 476 Earnings from equity-accounted investments (1) 44 (58) Net income from discontinued operations $ 3 779 $ 7 418 Unaudited condensed consolidated statement of cash flows Discontinued: Total net cash (used in) provided by operating activities $ 10 546 $ 7 028 Total net cash (used in) provided by investing activities (172) (197) (1) Earnings from equity-accounted investments for the three and six months ended December 31, 2018, represents earnings attributed to equity-accounted investments owned by DNI and included in the Company’s results as a result of the consolidation of DNI. |
Schedule Of Revenues And Expenses After DNI Disposal Transaction | DNI December 31, 2019 Three months ended Six months ended Revenue generated from transactions with DNI $ - $ - Expenses incurred related to transactions with DNI $ 333 $ 2 607 |
Disposal Of Controlling Inter_3
Disposal Of Controlling Interest In FIHRST And KSNET (Narrative) (Details) - USD ($) $ in Thousands | Jan. 23, 2020 | Dec. 01, 2019 |
FIHRST [Member] | ||
Business Acquisition [Line Items] | ||
Consideration amount from disposal of discontunued operation | $ 11,749 | |
KSNET [Member] | Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Consideration amount from disposal of discontunued operation | $ 237,500 |
Disposal Of Controlling Inter_4
Disposal Of Controlling Interest In FIHRST And KSNET (Impact Of Deconsolidation Of FIHRST And Calculation Of Net Loss Recognized On Deconsolidation) (Details) - USD ($) $ in Thousands | Dec. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | [1] | |
Less: carrying value of FIHRST, comprising | $ 0 | $ 0 | $ 0 | |||||
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 13) | (1,578) | $ 0 | (1,578) | $ 0 | ||||
Settlement assets | 55,401 | 55,401 | 63,479 | |||||
Settlement liabilities | (55,402) | (55,402) | $ (63,479) | |||||
Gain recognized on disposal, after tax | $ 0 | $ 3,779 | $ 0 | $ 7,418 | ||||
FIHRST [Member] | ||||||||
Fair value of consideration received | $ 11,749 | |||||||
Less: carrying value of FIHRST, comprising | 1,870 | |||||||
Cash and cash equivalents | 854 | |||||||
Accounts receivable, net | 367 | |||||||
Property, plant and equipment, net | 64 | |||||||
Goodwill (Note 8) | 599 | |||||||
Intangible assets, net | 30 | |||||||
Deferred income taxes assets | 42 | |||||||
Accounts payable | (7) | |||||||
Other payables | (1,437) | |||||||
Income taxes payable | (220) | |||||||
Released from accumulated other comprehensive income - foreign currency translation reserve (Note 13) | 1,578 | |||||||
Settlement assets | 17,406 | |||||||
Settlement liabilities | (17,406) | |||||||
Gain recognized on disposal, before tax | 9,879 | |||||||
Taxes related to gain recognized on disposal | 0 | |||||||
Capital gains tax | 2,418 | |||||||
Release of valuation allowance related to capital gains tax previously unutilized | [2] | (2,418) | ||||||
Transaction costs | 136 | |||||||
Gain recognized on disposal, after tax | $ 9,743 | |||||||
[1] | Derived from audited financial statements. | |||||||
[2] | Net1 SA recorded a valuation allowance related to capital losses previously generated but not utilized. A portion of these unutilized capital losses w as utilized as a result of the disposal of FIHRST and , therefore , the equivalent portion of the valuation allowance created was released. |
Accounts Receivable, Net And _3
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net (Schedule Of Accounts Receivable, Net And Other Receivables) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, trade, net | $ 26,568 | $ 25,136 |
Accounts receivable, trade, gross | 27,312 | 26,377 |
Allowance for doubtful accounts receivable, end of period | 744 | 1,241 |
Beginning of year | 1,241 | 1,101 |
Reversed to statement of operations | (535) | (24) |
Charged to statement of operations | 108 | 3,296 |
Utilized | (58) | (3,059) |
Deconsolidated | 0 | (38) |
Foreign currency adjustment | (12) | (35) |
Current portion of payments to agents in South Korea amortized over the contract period | 11,927 | 15,543 |
Cash payments to agents in South Korea amortized over the contract period | 18,457 | 25,107 |
Less: Payments to agents in South Korea amortized over the contract period included in other long-term assets (Note 7) | 6,530 | 9,564 |
Other receivables | 27,070 | 24,555 |
Total accounts receivable, net | 68,565 | 72,494 |
Carbon [Member] | Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan provided | 3,000 | 3,000 |
DNI [Member] | Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan provided | $ 0 | $ 4,260 |
Accounts Receivable, Net And _4
Accounts Receivable, Net And Other Receivables And Finance Loans Receivable, Net (Schedule Of Finance Loans Receivable, Net) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total finance loans receivable, net | $ 29,117 | $ 30,631 | [1] |
Reversed to statement of operations | (535) | (24) | |
Total accounts receivable, net | 29,117 | 30,631 | |
Microlending Finance Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total finance loans receivable, net | 14,504 | 20,981 | |
Receivable, gross | 17,091 | 24,180 | |
Allowance for doubtful receivable, end of period | 2,587 | 3,199 | |
Beginning of period | 3,199 | 4,239 | |
Reversed to statement of operations | (601) | 0 | |
Charged to statement of operations | 1,081 | 28,802 | |
Utilized | (1,085) | (29,721) | |
Foreign currency adjustment | (7) | (121) | |
Working Capital Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total finance loans receivable, net | 14,613 | 9,650 | |
Receivable, gross | 20,736 | 15,742 | |
Allowance for doubtful receivable, end of period | 6,123 | 6,092 | |
Beginning of period | 6,092 | 12,164 | |
Charged to statement of operations | 30 | 712 | |
Utilized | 0 | (6,777) | |
Foreign currency adjustment | $ 1 | $ (7) | |
[1] | Derived from audited financial statements. |
Inventory (Schedule Of Inventor
Inventory (Schedule Of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | |
Inventory [Abstract] | |||
Finished goods | $ 7,538 | $ 7,535 | |
Finished goods subject to sale restrictions | 13,658 | 0 | |
Inventory | $ 21,196 | $ 7,535 | [1] |
[1] | Derived from audited financial statements. |
Fair Value Of Financial Instr_3
Fair Value Of Financial Instruments (Narrative) (Details) R in Millions | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($)shares | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018ZAR (R) | Jun. 30, 2018USD ($) | Jun. 30, 2018ZAR (R) | |
Derivatives, Fair Value [Line Items] | |||||||
Other payables | $ 8,801,000 | $ 8,801,000 | $ 10,814,000 | ||||
Transfers into or out of Level 3 | $ 0 | $ 0 | |||||
Foreign Exchange Contracts [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Outstanding foreign exchange contracts | 0 | 0 | 0 | ||||
Cell C [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Investment amount owned | $ 0 | $ 0 | $ 0 | ||||
Adjusted EBITDA | $ 270,900,000 | R 3,900 | |||||
EBITDA multiple | 6.32% | 6.32% | |||||
Net external debt | 611,400,000 | R 8,800 | |||||
Marketability discount | 10.00% | 10.00% | |||||
Equity method investment, percentage of ownership interest | 0.00% | 0.00% | |||||
DNI [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Other payables | 26,800,000 | R 385.7 | |||||
Long-term liabilities | $ 27,200,000 | R 373.6 | |||||
DNI [Member] | Maximum [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
DNI contingent consideration | $ 27,800,000 | R 400 | |||||
Cell C [Member] | Net1 SA [Member] | Class A [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Investment shares owned | shares | 75,000,000 | 75,000,000 |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments (Schedule Of Key Valuation Inputs Used To Measure Fair Value Of Investment In Cell C) (Details) - Cell C [Member] $ in Millions, R in Billions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019ZAR (R) | Jun. 30, 2019ZAR (R) | |
Net adjusted external debt | $ 1,200 | $ 1,000 | R 16.4 | R 13.9 |
Lease liabilities included in net adjusted external debt | 6 | 6.4 | ||
Deferred tax including assessed tax losses | $ 206.4 | $ 205.9 | R 2.9 | R 2.9 |
Weighted Average Cost of Capital (WACC) Rate [Member] | Minimum [Member] | ||||
Investment fair value measurement inputs | 15.00% | 15.00% | ||
Weighted Average Cost of Capital (WACC) Rate [Member] | Maximum [Member] | ||||
Investment fair value measurement inputs | 20.00% | 20.00% | ||
Long Term Growth Rate [Member] | ||||
Investment fair value measurement inputs | 3.00% | 4.50% | ||
Marketability Discount [Member] | ||||
Investment fair value measurement inputs | 10.00% | 10.00% | ||
Minority Discount [Member] | ||||
Investment fair value measurement inputs | 15.00% | 15.00% |
Fair Value Of Financial Instr_5
Fair Value Of Financial Instruments (Schedule Of Impact On Carrying Value Of Cell C Investment) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
2.0% Increase [Member] | Weighted Average Cost of Capital (WACC) Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Sensitivity for fair value of investment, increase (decrease) in valuation based on 2% change | $ 0 |
2.0% Increase [Member] | EBITDA Multiple [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Sensitivity for fair value of investment, increase (decrease) in valuation based on 2% change | 1,687 |
2.0% Decrease [Member] | Weighted Average Cost of Capital (WACC) Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Sensitivity for fair value of investment, increase (decrease) in valuation based on 2% change | 8,238 |
2.0% Decrease [Member] | EBITDA Multiple [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Sensitivity for fair value of investment, increase (decrease) in valuation based on 2% change | $ 0 |
Fair Value Of Financial Instr_6
Fair Value Of Financial Instruments (Fair Value Of Assets And Liabilities Measured On Recurring Basis) (Details) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in Cell C | $ 0 | $ 0 | ||
Cash, cash equivalents and restricted cash (included in other long term assets) | 587 | 619 | ||
Fixed maturity investments (included in cash and cash equivalents) | 2,845 | 5,201 | ||
Other | 414 | 413 | ||
Total assets at fair value | 3,846 | 6,233 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash, cash equivalents and restricted cash (included in other long term assets) | 587 | 619 | ||
Fixed maturity investments (included in cash and cash equivalents) | 2,845 | 5,201 | ||
Total assets at fair value | 3,432 | 5,820 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other | 414 | 413 | ||
Total assets at fair value | 414 | 413 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment in Cell C | 0 | 0 | ||
Total assets at fair value | $ 0 | $ 0 | $ 149,058 | $ 172,948 |
Fair Value Of Financial Instr_7
Fair Value Of Financial Instruments (Carrying Value Of Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liabilities | ||||
Foreign currency adjustment | $ (147) | $ (83) | $ (234) | $ (1) |
Recurring [Member] | ||||
Assets | ||||
Beginning balance, Carrying value | 6,233 | |||
Ending balance, Carrying value | 3,846 | 3,846 | ||
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | ||||
Assets | ||||
Beginning balance, Carrying value | 0 | 172,948 | ||
Realized losses | (15,836) | |||
Foreign currency adjustment | 0 | (8,054) | ||
Ending balance, Carrying value | $ 0 | 149,058 | $ 0 | 149,058 |
Liabilities | ||||
Beginning balance, Carrying value | 27,222 | |||
Accretion of interest | 835 | |||
Foreign currency adjustment | (1,267) | |||
Ending balance, Carrying value | $ 26,790 | $ 26,790 |
Equity-Accounted Investments _3
Equity-Accounted Investments And Other Long-Term Assets (Narrative) (Details) R / shares in Units, $ in Thousands, R in Millions | Oct. 02, 2019USD ($) | Oct. 02, 2019ZAR (R) | Aug. 31, 2019USD ($) | Aug. 02, 2019shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Jan. 30, 2020USD ($) | Dec. 31, 2019ZAR (R)R / sharesshares | Jun. 30, 2019USD ($) | |
Market value of holding | $ 155,627 | $ 155,627 | $ 151,116 | [1] | ||||||||
Finbond [Member] | ||||||||||||
Investment shares owned | shares | 268,820,933 | 268,820,933 | 268,820,933 | |||||||||
Equity-accounted investments, ownership percentage | 29.10% | 29.10% | 29.10% | 29.00% | ||||||||
Market value of holding | $ 67,000 | $ 67,000 | R 0.9 | |||||||||
Share price | R / shares | R 3.5 | |||||||||||
Finbond [Member] | Capitalization Share Issue In Lieu Of A Dividend [Member] | ||||||||||||
Number of additional shares acquired | shares | 1,148,901 | |||||||||||
V2 [Member] | ||||||||||||
Equity acquisition amount under purchase agreement | $ 1,300 | |||||||||||
Equity-accounted investments, ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | ||||||||
Business acquisition amount contributed | $ 5,000 | $ 5,000 | ||||||||||
Working capital facility | $ 5,000 | |||||||||||
V2 [Member] | Subsequent Event [Member] | ||||||||||||
Business acquisition amount contributed | $ 1,300 | |||||||||||
DNI [Member] | ||||||||||||
Equity-accounted investments, ownership percentage | 30.00% | 30.00% | 30.00% | 30.00% | ||||||||
Other-than-temporary impairment related to the credit loss | $ 800 | $ 1,100 | ||||||||||
Cedar Cellular [Member] | 8.625% Notes [Member] | ||||||||||||
Equity-accounted investments, ownership percentage | 7.625% | 7.625% | 7.625% | 7.625% | ||||||||
Interest rate | 8.625% | 8.625% | 8.625% | 8.625% | ||||||||
Cell C [Member] | ||||||||||||
Equity-accounted investments, ownership percentage | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||
Bank Frick [Member] | ||||||||||||
Percentage of ownership interest | 35.00% | 35.00% | ||||||||||
Equity acquisition amount under purchase agreement | $ 46,500 | R 46.4 | ||||||||||
Cedar Cellular [Member] | ||||||||||||
Interest income recognized | $ 0 | $ 1,200 | $ 0 | $ 1,400 | ||||||||
Interest rate | 24.82% | 24.82% | ||||||||||
Amount expected to be recovered from debt security at maturity | $ 22,000 | |||||||||||
Present value of expected cash flows from debt security | 9,000 | |||||||||||
Investment amortized cost basis before impairment | 11,800 | |||||||||||
Other-than-temporary impairment related to the credit loss | $ 2,700 | |||||||||||
Maturity Date | Aug. 1, 2022 | |||||||||||
[1] | Derived from audited financial statements. |
Equity-Accounted Investments _4
Equity-Accounted Investments And Other Long-Term Assets (Ownership Percentage Of Equity-Accounted Investments) (Details) | Dec. 31, 2019 | Jun. 30, 2019 |
Bank Frick [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 35.00% | 35.00% |
DNI [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 30.00% | 30.00% |
Finbond [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 29.10% | 29.00% |
Carbon Tech Limited ("Carbon"), formerly OneFi Limited [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 25.00% | 25.00% |
Revix [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 25.00% | 0.00% |
SmartSwitch Namibia [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 50.00% | 50.00% |
V2 [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 50.00% | 50.00% |
Walletdoc [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity-accounted investments, ownership percentage | 20.00% | 20.00% |
Equity-Accounted Investments _5
Equity-Accounted Investments And Other Long-Term Assets (Summary Of Movement In Equity-Accounted Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment in equity: | ||||
Balance as of, beginning | $ 150,968 | |||
Acquisition of shares | 1,524 | |||
Stock-based compensation | 71 | |||
Comprehensive income (loss): | 3,796 | |||
Other comprehensive income | 2,227 | |||
Equity accounted earnings (loss) | 1,569 | |||
Share of net income | 3,860 | |||
Amortization - acquired intangible assets | (1,668) | |||
Deferred taxes - acquired intangible assets | 451 | |||
Impairment | (1,074) | |||
Dividends received | (1,722) | |||
Foreign currency adjustment | 842 | |||
Balance as of, ending | $ 155,479 | 155,479 | ||
Investment in loans: | ||||
Balance as of, beginning | 148 | |||
Loans granted | 612 | $ 0 | 612 | $ 0 |
Allowance for doubtful loans | (620) | |||
Foreign currency adjustment | 8 | |||
Balance as of, ending | 148 | 148 | ||
DNI [Member] | ||||
Investment in equity: | ||||
Balance as of, beginning | 61,030 | |||
Comprehensive income (loss): | 1,108 | |||
Equity accounted earnings (loss) | 1,108 | |||
Share of net income | 3,113 | |||
Amortization - acquired intangible assets | (1,292) | |||
Deferred taxes - acquired intangible assets | 361 | |||
Impairment | (1,074) | |||
Dividends received | (1,110) | |||
Foreign currency adjustment | 137 | |||
Balance as of, ending | 61,165 | 61,165 | ||
Bank Frick [Member] | ||||
Investment in equity: | ||||
Balance as of, beginning | 47,240 | |||
Comprehensive income (loss): | 469 | |||
Equity accounted earnings (loss) | 469 | |||
Share of net income | 755 | |||
Amortization - acquired intangible assets | (376) | |||
Deferred taxes - acquired intangible assets | 90 | |||
Foreign currency adjustment | 453 | |||
Balance as of, ending | 48,162 | 48,162 | ||
Finbond [Member] | ||||
Investment in equity: | ||||
Balance as of, beginning | 35,300 | |||
Acquisition of shares | 274 | |||
Stock-based compensation | 71 | |||
Comprehensive income (loss): | 2,718 | |||
Other comprehensive income | 2,227 | |||
Equity accounted earnings (loss) | 491 | |||
Share of net income | 491 | |||
Dividends received | (274) | |||
Foreign currency adjustment | 300 | |||
Balance as of, ending | 38,389 | 38,389 | ||
Other [Member] | ||||
Investment in equity: | ||||
Balance as of, beginning | 7,398 | |||
Acquisition of shares | 1,250 | |||
Comprehensive income (loss): | (499) | |||
Equity accounted earnings (loss) | (499) | |||
Share of net income | (499) | |||
Dividends received | (338) | |||
Foreign currency adjustment | (48) | |||
Balance as of, ending | 7,763 | 7,763 | ||
Investment in loans: | ||||
Balance as of, beginning | 148 | |||
Loans granted | 612 | |||
Allowance for doubtful loans | (620) | |||
Foreign currency adjustment | 8 | |||
Balance as of, ending | $ 148 | $ 148 |
Equity-Accounted Investments _6
Equity-Accounted Investments And Other Long-Term Assets (Carrying Amount Of Equity-Accounted Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Equity | $ 155,479 | $ 150,968 |
Loans | 148 | 148 |
Total | $ 155,627 | $ 151,116 |
Equity-Accounted Investments _7
Equity-Accounted Investments And Other Long-Term Assets (Summary Of Other Long-Term Asset) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | |
Schedule Of Equity And Held To Maturity Investments [Line Items] | |||
Total equity investments | $ 26,993 | $ 26,993 | |
Long-term portion of payments to agents in South Korea amortized over the contract period (Note 3) | 6,530 | 9,564 | |
Policy holder assets under investment contracts (Note 9) | 587 | 619 | |
Reinsurance assets under insurance contracts (Note 9) | 1,159 | 1,163 | |
Other long-term assets | 5,875 | 5,850 | |
Total other long-term assets | 41,144 | 44,189 | [1] |
Cell C [Member] | |||
Schedule Of Equity And Held To Maturity Investments [Line Items] | |||
Total equity investments | $ 0 | $ 0 | |
Equity-accounted investments, ownership percentage | 15.00% | 15.00% | |
MobiKwik [Member] | |||
Schedule Of Equity And Held To Maturity Investments [Line Items] | |||
Total equity investments | $ 26,993 | $ 26,993 | |
Equity-accounted investments, ownership percentage | 13.00% | 13.00% | |
Cedar Cellular [Member] | 8.625% Notes [Member] | |||
Schedule Of Equity And Held To Maturity Investments [Line Items] | |||
Total equity investments | $ 0 | $ 0 | |
Equity-accounted investments, ownership percentage | 7.625% | 7.625% | |
Interest rate | 8.625% | 8.625% | |
[1] | Derived from audited financial statements. |
Equity-Accounted Investments _8
Equity-Accounted Investments And Other Long-Term Assets (Summary Of Unrealized Gain (Loss) On Investments) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Jun. 30, 2019 | |
Schedule Of Equity And Held To Maturity Investments [Line Items] | ||
Cost basis | $ 26,993 | $ 26,993 |
Carrying value | 26,993 | 0 |
MobiKwik [Member] | ||
Schedule Of Equity And Held To Maturity Investments [Line Items] | ||
Cost basis | 26,993 | 26,993 |
Carrying value | 26,993 | 0 |
Cedar Cellular Investment1 Ltd [Member] | ||
Schedule Of Equity And Held To Maturity Investments [Line Items] | ||
Cost basis | 0 | 0 |
Carrying value | $ 0 | $ 0 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets [Line Items] | ||||
Impairment of goodwill | $ 8.2 | $ 8.2 | ||
Amortization expense | $ 1.9 | 6.1 | $ 3.8 | 12.2 |
International Transaction Processing [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Impairment of goodwill | 7 | 7 | ||
South African Transaction Processing [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Impairment of goodwill | $ 1.2 | $ 1.2 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets, Net (Summary Of Movement In Carrying Value Of Goodwill) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2019 | Jun. 30, 2019 | |||
Goodwill And Intangible Assets, Net [Abstract] | ||||
Gross value, Beginning Balance | $ 184,544 | |||
Gross value, Disposal of FIHRST (Note 2) | (599) | |||
Gross value, Foreign currency adjustment | 122 | |||
Gross value, Ending Balance | 184,067 | |||
Accumulated impairment, Beginning Balance | (35,157) | |||
Accumulated impairment, Foreign currency adjustment | [1] | 28 | ||
Accumulated impairment, Ending Balance | (35,129) | |||
Carrying value, Beginning Balance | $ 149,387 | |||
Carrying value, Disposal of FIHRST (Note 2) | (599) | |||
Carrying value, Foreign currency adjustment | [1] | 150 | ||
Carrying value, Ending Balance | $ 148,938 | $ 149,387 | [2] | |
[1] | The foreign currency adjustment represents the effects of the fluctuations between the South African rand, the Euroand the Korean won, and the U.S. dollar on the carrying value. | |||
[2] | Derived from audited financial statements. |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets, Net (Goodwill Allocated To Reportable Segments) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 31, 2019 | Jun. 30, 2019 | |||
Goodwill [Line Items] | ||||
Carrying value, Beginning Balance | $ 149,387 | |||
Carrying value, Disposal of FIHRST (Note 2) | $ (599) | |||
Carrying value, Foreign currency adjustment | [1] | 150 | ||
Carrying value, Ending Balance | 148,938 | 149,387 | [2] | |
South African Transaction Processing [Member] | ||||
Goodwill [Line Items] | ||||
Carrying value, Beginning Balance | 19,208 | |||
Carrying value, Disposal of FIHRST (Note 2) | (599) | |||
Carrying value, Foreign currency adjustment | [1] | 23 | ||
Carrying value, Ending Balance | 18,632 | |||
International Transaction Processing [Member] | ||||
Goodwill [Line Items] | ||||
Carrying value, Beginning Balance | 112,728 | |||
Carrying value, Foreign currency adjustment | [1] | 83 | ||
Carrying value, Ending Balance | 112,811 | |||
Financial Inclusion And Applied Technologies [Member] | ||||
Goodwill [Line Items] | ||||
Carrying value, Beginning Balance | $ 17,451 | |||
Carrying value, Foreign currency adjustment | [1] | 44 | ||
Carrying value, Ending Balance | $ 17,495 | |||
[1] | The foreign currency adjustment represents the effects of the fluctuations between the South African rand, the Euroand the Korean won, and the U.S. dollar on the carrying value. | |||
[2] | Derived from audited financial statements. |
Goodwill And Intangible Asset_6
Goodwill And Intangible Assets, Net (Carrying Value And Accumulated Amortization Of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Gross carrying value | $ 134,186 | $ 138,217 | ||
Accumulated amortization | (126,905) | (127,100) | ||
Total future estimated amortization expense | 7,281 | 11,117 | ||
Indefinite-lived intangible assets | 762 | 772 | ||
Total intangible assets, Gross carrying value | 134,948 | 138,989 | ||
Total intangible assets, Net carrying value | 8,043 | 11,889 | [1] | |
Financial Institution License [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | 762 | 772 | ||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Gross carrying value | [2] | 95,792 | 96,653 | |
Accumulated amortization | [2] | (89,273) | (86,285) | |
Total future estimated amortization expense | [2] | 6,519 | 10,368 | |
Software And Unpatented Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Gross carrying value | [2] | 28,883 | 32,071 | |
Accumulated amortization | [2] | (28,598) | (31,829) | |
Total future estimated amortization expense | [2] | 285 | 242 | |
FTS Patent [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Gross carrying value | 2,727 | 2,721 | ||
Accumulated amortization | (2,727) | (2,721) | ||
Trademarks And Brands [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, Gross carrying value | 6,784 | 6,772 | ||
Accumulated amortization | (6,307) | (6,265) | ||
Total future estimated amortization expense | $ 477 | $ 507 | ||
[1] | Derived from audited financial statements. | |||
[2] | Intangible assets acquired as part of the DNI acquisition in June 30, 2018 have been deconsolidated and are excludedfrom the December 31, 2019, balances, refer to ##AcqDispCI. |
Goodwill And Intangible Asset_7
Goodwill And Intangible Assets, Net (Future Estimated Annual Amortization Expense) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill And Intangible Assets, Net [Abstract] | |
Fiscal 2020 | $ 7,919 |
Fiscal 2021 | 2,807 |
Fiscal 2022 | 73 |
Fiscal 2023 | 73 |
Fiscal 2024 | 72 |
Thereafter | 145 |
Total future estimated amortization expense | $ 11,089 |
Assets And Policyholder Liabili
Assets And Policyholder Liabilities Under Insurance And Investment Contracts (Summary Of The Movement In Reinsurance Assets And) (Details) $ in Thousands | 6 Months Ended | |
Dec. 31, 2019USD ($) | ||
Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ||
Reinsurance assets, Beginning Balance | $ 1,163 | [1] |
Reinsurance assets, Increase in policyholder benefits under insurance contracts | 220 | [1] |
Reinsurance assets, Claims and policyholders' benefits under insurance contracts | (227) | [1] |
Reinsurance assets, Foreign currency adjustment | 3 | [1],[2] |
Reinsurance assets, Ending Balance | 1,159 | [1] |
Insurance contracts, Beginning Balance | (1,880) | [3] |
Insurance contracts, Increase in policyholder benefits under insurance contracts | (3,232) | [3] |
Insurance contracts, Claims and policyholders' benefits under insurance contracts | 3,201 | [3] |
Insurance contracts, Foreign currency adjustment | (5) | [2],[3] |
Insurance contracts, Ending Balance | $ (1,916) | [3] |
[1] | Included in other long-term assets. | |
[2] | Represents the effects of the fluctuations between the ZAR and the U.S. dollar. | |
[3] | Included in other long-term liabilities. |
Assets And Policyholder Liabi_2
Assets And Policyholder Liabilities Under Insurance And Investment Contracts (Summary Of Movement In Assets And Policyholder Liabilities Under Investment Contracts) (Details) $ in Thousands | 6 Months Ended | |
Dec. 31, 2019USD ($) | ||
Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ||
Assets, Beginning Balance | $ 619 | [1] |
Assets, Increase in policyholder benefits under investment contracts | 2 | [1] |
Assets, Claims and policyholders' benefits under investment contracts | (36) | |
Assets, Foreign currency adjustment | 2 | [1],[2] |
Assets, Ending Balance | 587 | [1] |
Investment contracts, Beginning Balance | (619) | [3] |
Investment contracts, Increase in policy holder benefits under investment contracts | (2) | [3] |
Investment contracts, Claims and policyholders' benefits under investment contracts | 36 | |
Investment contracts, Foreign currency adjustment | (2) | [2],[3] |
Investment contracts, Ending Balance | $ (587) | [3] |
[1] | Included in other long-term assets. | |
[2] | Represents the effects of the fluctuations between the ZAR and the U.S. dollar. | |
[3] | Included in other long-term liabilities. |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) ₩ in Billions | Jan. 17, 2020 | Sep. 04, 2019USD ($) | Jan. 01, 2019KRW (₩) | Sep. 26, 2018USD ($) | Sep. 14, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019ZAR (R) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019ZAR (R) | Sep. 30, 2019ZAR (R) | Sep. 04, 2019ZAR (R) | Jun. 30, 2019USD ($) | Jun. 30, 2019ZAR (R) | Feb. 04, 2019USD ($) | Jan. 01, 2019USD ($) | Sep. 26, 2018ZAR (R) |
South Africa [Member] | Revolving Credit Facility [Member] | |||||||||||||||||||
Prepaid credit facility fees | $ 0 | $ 100,000 | $ 0 | $ 200,000 | |||||||||||||||
Interest expense incurred | 400,000 | $ 900,000 | 600,000 | $ 2,100,000 | |||||||||||||||
Overdraft Restricted As To Use For ATM Funding Only [Member] | |||||||||||||||||||
Maximum borrowing capacity | 103,215,000 | 103,215,000 | |||||||||||||||||
Overdraft Facility [Member] | |||||||||||||||||||
Maximum borrowing capacity | 32,213,000 | 32,213,000 | |||||||||||||||||
Amount utilized | 98,266,000 | 98,266,000 | $ 84,990,000 | ||||||||||||||||
Overdraft Facility [Member] | Amended July 2017 [Member] | South Africa [Member] | Facility E [Member] | Net1 SA [Member] | |||||||||||||||||||
Maximum borrowing capacity | $ 106,800,000 | $ 85,400,000 | R 1,200,000,000 | R 1,500,000,000 | |||||||||||||||
Percentage repayment of overdraft facility amount utilized | 90.00% | ||||||||||||||||||
Amount utilized | 72,700,000 | $ 72,700,000 | R 1,000,000,000 | ||||||||||||||||
Credit faility expiration period | 25 days | ||||||||||||||||||
Overdraft Facility [Member] | Amended July 2017 [Member] | South Africa [Member] | Facility F [Member] | Net1 SA [Member] | |||||||||||||||||||
Maximum borrowing capacity | $ 21,300,000 | R 300,000,000 | |||||||||||||||||
Debt instrument interest rate | 5.50% | ||||||||||||||||||
Non-refundable structuring fee | $ 100,000 | R 2,200,000 | |||||||||||||||||
Overdraft Facility [Member] | Amended July 2017 [Member] | South Africa [Member] | First Senior Facility F [Member] | Net1 SA [Member] | |||||||||||||||||||
Maximum borrowing capacity | R | 220,000,000 | ||||||||||||||||||
Overdraft Facility [Member] | Amended July 2017 [Member] | South Africa [Member] | Second Senior Facility F [Member] | Net1 SA [Member] | |||||||||||||||||||
Maximum borrowing capacity | R | R 80,000,000 | ||||||||||||||||||
Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | |||||||||||||||||||
Amount utilized | 84,360,000 | $ 84,360,000 | |||||||||||||||||
Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | South Africa [Member] | Facility E [Member] | Net1 SA [Member] | |||||||||||||||||||
Maximum borrowing capacity | R | R 1,200,000,000 | ||||||||||||||||||
Overdraft Facility [Member] | JIBAR [Member] | Amended July 2017 [Member] | South Africa [Member] | Revolving Credit Facility [Member] | Net1 SA [Member] | |||||||||||||||||||
Debt instrument interest rate | 6.79% | ||||||||||||||||||
Overdraft Facility [Member] | Prime Rate [Member] | South Africa [Member] | Facility E [Member] | Subsequent Event [Member] | |||||||||||||||||||
Debt instrument interest rate | 9.75% | ||||||||||||||||||
Overdraft Facility [Member] | Prime Rate [Member] | Amended July 2017 [Member] | South Africa [Member] | Facility E [Member] | Net1 SA [Member] | |||||||||||||||||||
Debt instrument interest rate | 10.00% | ||||||||||||||||||
Indirect And Derivative Facilities [Member] | |||||||||||||||||||
Maximum borrowing capacity | 10,677,000 | $ 10,677,000 | |||||||||||||||||
Amount utilized | 6,660,000 | 6,660,000 | 6,643,000 | ||||||||||||||||
Nedbank Limited [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | South Africa [Member] | |||||||||||||||||||
Maximum borrowing capacity | 17,796,000 | 17,796,000 | |||||||||||||||||
Nedbank Limited [Member] | Nedbank Short-Term Credit Facility [Member] | South Africa [Member] | |||||||||||||||||||
Amount utilized | 11,700,000 | 11,700,000 | |||||||||||||||||
Nedbank Limited [Member] | South African Credit Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | South Africa [Member] | |||||||||||||||||||
Amount utilized | 11,700,000 | 11,700,000 | 164,300,000 | ||||||||||||||||
Nedbank Limited [Member] | South African Credit Facility [Member] | General Banking Facility [Member] | South Africa [Member] | |||||||||||||||||||
Amount utilized | 0 | 0 | 0 | ||||||||||||||||
Nedbank Limited [Member] | South African Credit Facility [Member] | Nedbank Short-Term Credit Facility [Member] | South Africa [Member] | |||||||||||||||||||
Maximum borrowing capacity | 32,000,000 | 32,000,000 | 450,000,000 | ||||||||||||||||
Nedbank Limited [Member] | Overdraft Facility [Member] | South Africa [Member] | |||||||||||||||||||
Maximum borrowing capacity | 3,559,000 | 3,559,000 | |||||||||||||||||
Amount utilized | 11,696,000 | 11,696,000 | 5,880,000 | ||||||||||||||||
Nedbank Limited [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | South Africa [Member] | |||||||||||||||||||
Amount utilized | 11,696,000 | 11,696,000 | |||||||||||||||||
Primary amount, available immediately | 17,800,000 | 17,800,000 | 250,000,000 | ||||||||||||||||
Nedbank Limited [Member] | Overdraft Facility [Member] | General Banking Facility [Member] | South Africa [Member] | |||||||||||||||||||
Primary amount, available immediately | 3,600,000 | 3,600,000 | 50,000,000 | ||||||||||||||||
Nedbank Limited [Member] | Overdraft Facility [Member] | Nedbank Short-Term Credit Facility [Member] | South Africa [Member] | |||||||||||||||||||
Maximum borrowing capacity | 14,400,000 | 14,400,000 | |||||||||||||||||
Net of total overdraft facilities withdrawn | 11,700,000 | ||||||||||||||||||
Carrying value of short term borrowings | 2,700,000 | $ 2,700,000 | |||||||||||||||||
Debt instrument interest rate | 8.85% | ||||||||||||||||||
Primary amount, available immediately | 21,400,000 | $ 21,400,000 | 300,000,000 | ||||||||||||||||
Nedbank Limited [Member] | Overdraft Facility [Member] | Nedbank Short-Term Credit Facility [Member] | South Africa [Member] | Subsequent Event [Member] | |||||||||||||||||||
Debt instrument interest rate | 8.60% | ||||||||||||||||||
Nedbank Limited [Member] | Indirect And Derivative Facilities [Member] | South Africa [Member] | |||||||||||||||||||
Maximum borrowing capacity | 10,677,000 | 10,677,000 | |||||||||||||||||
Amount utilized | 6,660,000 | 6,660,000 | 6,643,000 | ||||||||||||||||
Nedbank Limited [Member] | Indirect And Derivative Facilities [Member] | Nedbank Short-Term Credit Facility [Member] | South Africa [Member] | |||||||||||||||||||
Amount utilized | 6,700,000 | 6,700,000 | 93,600,000 | 6,600,000 | R 93,600,000 | ||||||||||||||
Primary amount, available immediately | 10,700,000 | 10,700,000 | R 150,000,000 | ||||||||||||||||
Bank Frick [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | United States [Member] | |||||||||||||||||||
Maximum borrowing capacity | 0 | 0 | |||||||||||||||||
Bank Frick [Member] | Overdraft Facility [Member] | United States [Member] | |||||||||||||||||||
Maximum borrowing capacity | 20,000,000 | 20,000,000 | $ 20,000,000 | ||||||||||||||||
Amount utilized | 13,906,000 | 13,906,000 | 9,544,000 | ||||||||||||||||
Termination written notice | 42 days | ||||||||||||||||||
Bank Frick [Member] | Overdraft Facility [Member] | Renewed [Member] | United States [Member] | |||||||||||||||||||
Maximum borrowing capacity | $ 10,000,000 | ||||||||||||||||||
Amount utilized | 13,900,000 | 13,900,000 | |||||||||||||||||
Bank Frick [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | United States [Member] | |||||||||||||||||||
Amount utilized | 0 | $ 0 | |||||||||||||||||
Bank Frick [Member] | Overdraft Facility [Member] | 3-month US dollar LIBOR Rate [Member] | Renewed [Member] | United States [Member] | |||||||||||||||||||
Debt instrument variable interest rate | 4.50% | 1.91% | |||||||||||||||||
Bank Frick [Member] | Indirect And Derivative Facilities [Member] | United States [Member] | |||||||||||||||||||
Maximum borrowing capacity | 0 | $ 0 | |||||||||||||||||
Amount utilized | 0 | 0 | 0 | ||||||||||||||||
Hana Bank [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | South Korea [Member] | |||||||||||||||||||
Maximum borrowing capacity | 0 | 0 | |||||||||||||||||
Hana Bank [Member] | Overdraft Facility [Member] | South Korea [Member] | |||||||||||||||||||
Maximum borrowing capacity | ₩ 10 | 8,654,000 | 8,654,000 | $ 8,700,000 | |||||||||||||||
Amount utilized | 0 | 0 | 0 | ||||||||||||||||
Credit faility expiration period | 1 year | ||||||||||||||||||
Hana Bank [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | South Korea [Member] | |||||||||||||||||||
Amount utilized | 0 | $ 0 | |||||||||||||||||
Hana Bank [Member] | Overdraft Facility [Member] | 3-month CD Rate [Member] | South Korea [Member] | |||||||||||||||||||
Debt instrument variable interest rate | 1.98% | ||||||||||||||||||
Hana Bank [Member] | Overdraft Facility [Member] | CD Rates [Member] | South Korea [Member] | |||||||||||||||||||
Debt instrument variable interest rate | 1.53% | ||||||||||||||||||
Hana Bank [Member] | Indirect And Derivative Facilities [Member] | South Korea [Member] | |||||||||||||||||||
Maximum borrowing capacity | 0 | $ 0 | |||||||||||||||||
Amount utilized | $ 0 | $ 0 | $ 0 |
Borrowings (Summary Of Short-Te
Borrowings (Summary Of Short-Term Credit Facilities) (Details) $ in Thousands, R in Millions, ₩ in Billions | 3 Months Ended | 6 Months Ended | ||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019ZAR (R) | Dec. 31, 2018USD ($) | Feb. 04, 2019USD ($) | Jan. 01, 2019KRW (₩) | Jan. 01, 2019USD ($) | Sep. 14, 2018USD ($) | ||
Short-term Debt [Line Items] | ||||||||||
Utilized | $ 207,876 | $ 221,582 | $ 391,550 | $ 306,237 | ||||||
Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 103,215 | 103,215 | ||||||||
Overdraft Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 32,213 | 32,213 | ||||||||
Balance as of June 30, 2019 | 84,990 | |||||||||
Utilized | 391,550 | |||||||||
Repaid | (378,554) | |||||||||
Foreign currency adjustment | [1] | 280 | ||||||||
Balance as of September 30, 2019 | 98,266 | 98,266 | ||||||||
Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 84,360 | 84,360 | ||||||||
Overdraft Facility [Member] | No Restrictions As To Use [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 13,906 | 13,906 | ||||||||
Indirect And Derivative Facilities [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 10,677 | 10,677 | ||||||||
Balance as of June 30, 2019 | 6,643 | |||||||||
Guarantees cancelled | 0 | |||||||||
Utilized | 0 | |||||||||
Foreign currency adjustment | 17 | |||||||||
Balance as of September 30, 2019 | 6,660 | 6,660 | ||||||||
South Africa [Member] | Amended July 2017 [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 85,419 | 85,419 | ||||||||
South Africa [Member] | Amended July 2017 [Member] | Overdraft Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 0 | 0 | ||||||||
Balance as of June 30, 2019 | 69,566 | |||||||||
Utilized | 349,466 | |||||||||
Repaid | (346,525) | |||||||||
Foreign currency adjustment | [1] | 157 | ||||||||
Balance as of September 30, 2019 | 72,664 | 72,664 | ||||||||
South Africa [Member] | Amended July 2017 [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 72,664 | 72,664 | ||||||||
South Africa [Member] | Amended July 2017 [Member] | Overdraft Facility [Member] | No Restrictions As To Use [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 0 | 0 | ||||||||
South Africa [Member] | Amended July 2017 [Member] | Indirect And Derivative Facilities [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 0 | 0 | ||||||||
Balance as of June 30, 2019 | 0 | |||||||||
Guarantees cancelled | 0 | |||||||||
Utilized | 0 | |||||||||
Foreign currency adjustment | [1] | 0 | ||||||||
Balance as of September 30, 2019 | 0 | 0 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 17,796 | 17,796 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Nedbank Short-Term Credit Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 11,700 | 11,700 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Overdraft Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 3,559 | 3,559 | ||||||||
Balance as of June 30, 2019 | 5,880 | |||||||||
Utilized | 33,722 | |||||||||
Repaid | (28,029) | |||||||||
Foreign currency adjustment | [1] | 123 | ||||||||
Balance as of September 30, 2019 | 11,696 | 11,696 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 11,696 | 11,696 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Overdraft Facility [Member] | No Restrictions As To Use [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 0 | 0 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Overdraft Facility [Member] | Nedbank Short-Term Credit Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 14,400 | 14,400 | ||||||||
Total overdraft facilities withdrawn | 14,400 | |||||||||
South Africa [Member] | Nedbank Limited [Member] | Indirect And Derivative Facilities [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 10,677 | 10,677 | ||||||||
Balance as of June 30, 2019 | 6,643 | |||||||||
Guarantees cancelled | 0 | |||||||||
Utilized | 0 | |||||||||
Foreign currency adjustment | [1] | 17 | ||||||||
Balance as of September 30, 2019 | 6,660 | 6,660 | ||||||||
South Africa [Member] | Nedbank Limited [Member] | Indirect And Derivative Facilities [Member] | Nedbank Short-Term Credit Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of June 30, 2019 | 6,600 | R 93.6 | ||||||||
Balance as of September 30, 2019 | 6,700 | 6,700 | R 93.6 | |||||||
United States [Member] | Bank Frick [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 0 | 0 | ||||||||
United States [Member] | Bank Frick [Member] | Overdraft Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 20,000 | 20,000 | $ 20,000 | |||||||
Balance as of June 30, 2019 | 9,544 | |||||||||
Utilized | 8,362 | |||||||||
Repaid | (4,000) | |||||||||
Foreign currency adjustment | [1] | 0 | ||||||||
Balance as of September 30, 2019 | 13,906 | 13,906 | ||||||||
United States [Member] | Bank Frick [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 0 | 0 | ||||||||
United States [Member] | Bank Frick [Member] | Overdraft Facility [Member] | No Restrictions As To Use [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 13,906 | 13,906 | ||||||||
United States [Member] | Bank Frick [Member] | Indirect And Derivative Facilities [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 0 | 0 | ||||||||
Balance as of June 30, 2019 | 0 | |||||||||
Guarantees cancelled | 0 | |||||||||
Utilized | 0 | |||||||||
Foreign currency adjustment | 0 | |||||||||
Balance as of September 30, 2019 | 0 | 0 | ||||||||
United States [Member] | Bank Frick [Member] | Renewed [Member] | Overdraft Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | $ 10,000 | |||||||||
Balance as of September 30, 2019 | 13,900 | 13,900 | ||||||||
South Korea [Member] | Hana Bank [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 0 | 0 | ||||||||
South Korea [Member] | Hana Bank [Member] | Overdraft Facility [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 8,654 | 8,654 | ₩ 10 | $ 8,700 | ||||||
Balance as of June 30, 2019 | 0 | |||||||||
Utilized | 0 | |||||||||
Repaid | 0 | |||||||||
Foreign currency adjustment | [1] | 0 | ||||||||
Balance as of September 30, 2019 | 0 | 0 | ||||||||
South Korea [Member] | Hana Bank [Member] | Overdraft Facility [Member] | Overdraft Restricted As To Use For ATM Funding Only [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 0 | 0 | ||||||||
South Korea [Member] | Hana Bank [Member] | Overdraft Facility [Member] | No Restrictions As To Use [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Balance as of September 30, 2019 | 0 | 0 | ||||||||
South Korea [Member] | Hana Bank [Member] | Indirect And Derivative Facilities [Member] | ||||||||||
Short-term Debt [Line Items] | ||||||||||
Short-term facility available | 0 | 0 | ||||||||
Balance as of June 30, 2019 | 0 | |||||||||
Guarantees cancelled | 0 | |||||||||
Utilized | 0 | |||||||||
Foreign currency adjustment | 0 | |||||||||
Balance as of September 30, 2019 | $ 0 | $ 0 | ||||||||
[1] | Represents the effects of the fluctuations between the ZAR and the U.S. dollar. |
Borrowings (Summary Of Long-Ter
Borrowings (Summary Of Long-Term Borrowings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | |||||
Current portion of long-term borrowings | $ 4,063 | $ 4,063 | $ 0 | ||
Long-term borrowings | 0 | 0 | 0 | ||
Beginning Balance | 0 | ||||
Utilized | 0 | $ 3,203 | 14,798 | $ 11,004 | |
Repaid | (11,313) | $ (13,551) | (11,313) | $ (23,811) | |
Foreign currency adjustment | 578 | ||||
Ending Balance | 4,063 | 4,063 | |||
Amended July 2017 [Member] | South Africa [Member] | |||||
Debt Instrument [Line Items] | |||||
Current portion of long-term borrowings | 4,063 | 4,063 | 0 | ||
Long-term borrowings | 0 | 0 | $ 0 | ||
Beginning Balance | 0 | ||||
Utilized | 14,798 | ||||
Repaid | (11,313) | ||||
Foreign currency adjustment | 578 | ||||
Ending Balance | $ 4,063 | $ 4,063 |
Other Payables (Narrative) (Det
Other Payables (Narrative) (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019ZAR (R) | Jun. 30, 2019USD ($) | Jun. 30, 2019ZAR (R) |
Other Payables [Abstract] | ||||
Total amount recorded as payable to SASSA related to implementation costs to be refunded | $ 35,270 | R 495,500,000 | $ 34,039 | R 479,400,000 |
Revenue refund portion of the total amount payable to SASSA | 19,800 | 277,600 | 19,700 | 277,600,000 |
Accrued interest included in total amount payable to SASSA | 12,600 | 177,600 | 11,400 | 161,000,000 |
Unclaimed indirect taxes | 2,800 | 38,900 | 2,800 | 39,400,000 |
Estimated cost payable amount included in the total amount payable to SASSA | $ 100 | R 1,400 | $ 100 | R 1,400,000 |
Other Payables (Schedule Of Oth
Other Payables (Schedule Of Other Payables) (Details) $ in Thousands, R in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019ZAR (R) | Jun. 30, 2019USD ($) | Jun. 30, 2019ZAR (R) | |
Other Payables [Abstract] | |||||
Accrual of implementation costs to be refunded to SASSA | $ 35,270 | R 495.5 | $ 34,039 | R 479.4 | |
Accruals | 15,376 | 10,620 | |||
Provisions | 4,390 | 6,074 | |||
Other | 8,801 | 10,814 | |||
Value-added tax payable | 3,624 | 3,234 | |||
Payroll-related payables | 1,131 | 1,113 | |||
Participating merchants settlement obligation | 542 | 555 | |||
Other payables, total | $ 69,134 | $ 66,449 | [1] | ||
[1] | Derived from audited financial statements. |
Capital Structure (Schedule Of
Capital Structure (Schedule Of Number Of Shares, Net Of Treasury) (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Capital Structure [Abstract] | ||
Number of shares, net of treasury: Statement of changes in equity | 56,568,425 | 56,833,925 |
Non-vested equity shares that have not vested as of end of period | 583,908 | 860,817 |
Number of shares, net of treasury excluding non-vested equity shares that have not vested | 55,984,517 | 55,973,108 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Loss [Abstract] | ||||
Reclassification from accumulated other comprehensive (loss) income | $ 1,600,000 | $ 0 | $ 1,600,000 | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Change In Accumulated Other Comprehensive (Loss) Income Per Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | $ (214,640) | $ (189,630) | $ (199,273) | [1] | $ (184,538) |
Release of foreign currency translation reserve related to disposal of FIHRST (Note 2) | 1,578 | 1,578 | |||
Movement in foreign currency translation reserve related to equity accounted investment | (491) | 0 | 2,227 | 5,430 | |
Movement in foreign currency translation reserve | 19,114 | (8,744) | 1,029 | (19,266) | |
Ending Balance | (194,439) | (198,374) | (194,439) | (198,374) | |
Accumulated Foreign Currency Translation Reserve [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (214,640) | (189,630) | (199,273) | (184,538) | |
Release of foreign currency translation reserve related to disposal of FIHRST (Note 2) | 1,578 | 1,578 | |||
Movement in foreign currency translation reserve related to equity accounted investment | (491) | 2,227 | 5,430 | ||
Movement in foreign currency translation reserve | 19,114 | (8,744) | 1,029 | (19,266) | |
Ending Balance | $ (194,439) | $ (198,374) | $ (194,439) | $ (198,374) | |
[1] | Derived from audited financial statements. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | Sep. 07, 2018 | Aug. 23, 2017 | Aug. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of stock options awarded | 561,000 | 600,000 | |||||||
Stock-based compensation charge, net | $ 436,000 | $ 598,000 | $ 823,000 | $ 1,185,000 | |||||
Deferred tax asset related to stock-based compensation | 300,000 | 300,000 | $ 200,000 | ||||||
Valuation allowance | $ 300,000 | $ 300,000 | $ 200,000 | ||||||
Stock Options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercisable stock options | 0 | 0 | 170,335 | 0 | |||||
Options exercise price range, lower limit | $ 3.07 | ||||||||
Options exercise price range, upper limit | $ 11.23 | ||||||||
Expected volatility | 57.00% | 44.00% | |||||||
Expected life (in years) | 3 years | 3 years | |||||||
Risk-free rate | 1.57% | 2.75% | |||||||
Unrecognized compensation cost | $ 1,300,000 | $ 1,300,000 | |||||||
Unrecognized compensation cost, expected recognition period, years | 3 years | ||||||||
Stock Options [Member] | August 2008 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected volatility calculation term | 750 days | ||||||||
Stock Options [Member] | Executive Officers [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares forfeited | 0 | 0 | |||||||
Stock Options [Member] | Executive Officers [Member] | August 2008 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares forfeited | 200,000 | ||||||||
Strike price | $ 24.46 | ||||||||
Stock Options [Member] | Executive Officers And Employees [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of stock options awarded | 600,000 | ||||||||
Stock Options [Member] | Employees [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of stock options awarded | 561,000 | 0 | 561,000 | ||||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of stock options awarded | 148,000 | ||||||||
Vested number of shares of restricted stock | 52,594 | ||||||||
Stock-based compensation charge, net | $ 0 | $ 600,000 | $ 0 | $ 1,000,000 | |||||
Unrecognized compensation cost | $ 1,100,000 | $ 1,100,000 | |||||||
Unrecognized compensation cost, expected recognition period, years | 2 years | ||||||||
Restricted Stock [Member] | September 2018 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected volatility calculation term | 30 days | ||||||||
Expected volatility | 37.40% | ||||||||
Expected life (in years) | 3 years | ||||||||
Future dividends | $ 0 | ||||||||
Restricted Stock [Member] | September 2018 [Member] | Below $15 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 0.00% | ||||||||
Restricted Stock [Member] | September 2018 [Member] | At or above $15 and below $19 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.00% | ||||||||
Restricted Stock [Member] | September 2018 [Member] | At or above $19 and below $23 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 66.00% | ||||||||
Restricted Stock [Member] | September 2018 [Member] | At or above $23 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 100.00% | ||||||||
Restricted Stock [Member] | August 2017 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | $ 23 | ||||||||
Percentage of increase target price | 35.00% | ||||||||
Closing price, per share | $ 9.38 | ||||||||
Expected volatility | 44.00% | ||||||||
Expected life (in years) | 3 years | ||||||||
Future dividends | $ 0 | ||||||||
Restricted Stock [Member] | August 2017 [Member] | Below $15 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 0.00% | ||||||||
Restricted Stock [Member] | August 2017 [Member] | At or above $15 and below $19 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.00% | ||||||||
Restricted Stock [Member] | August 2017 [Member] | At or above $19 and below $23 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 66.00% | ||||||||
Restricted Stock [Member] | August 2017 [Member] | At or above $23 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 100.00% | ||||||||
Restricted Stock [Member] | Executive Officers [Member] | September 2018 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of stock options awarded | 148,000 | ||||||||
Performance target, per share | $ 23 | ||||||||
Percentage of increase target price | 55.00% | ||||||||
Closing price, per share | $ 6.2 | ||||||||
Restricted Stock [Member] | Executive Officers [Member] | August 2017 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of stock options awarded | 210,000 | 210,000 | |||||||
Restricted Stock [Member] | Non-Employee Directors [Member] | September 2018 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vested number of shares of restricted stock | 52,594 | ||||||||
Minimum [Member] | Restricted Stock [Member] | September 2018 [Member] | At or above $15 and below $19 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | $ 15 | ||||||||
Minimum [Member] | Restricted Stock [Member] | September 2018 [Member] | At or above $19 and below $23 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | 19 | ||||||||
Minimum [Member] | Restricted Stock [Member] | September 2018 [Member] | At or above $23 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | $ 23 | ||||||||
Minimum [Member] | Restricted Stock [Member] | August 2017 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Risk-free rate | 1.275% | ||||||||
Minimum [Member] | Restricted Stock [Member] | August 2017 [Member] | At or above $15 and below $19 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | $ 15 | ||||||||
Minimum [Member] | Restricted Stock [Member] | August 2017 [Member] | At or above $19 and below $23 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | 19 | ||||||||
Minimum [Member] | Restricted Stock [Member] | August 2017 [Member] | At or above $23 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | 23 | ||||||||
Maximum [Member] | Restricted Stock [Member] | September 2018 [Member] | Below $15 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | 15 | ||||||||
Maximum [Member] | Restricted Stock [Member] | September 2018 [Member] | At or above $15 and below $19 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | 19 | ||||||||
Maximum [Member] | Restricted Stock [Member] | September 2018 [Member] | At or above $19 and below $23 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | $ 23 | ||||||||
Maximum [Member] | Restricted Stock [Member] | August 2017 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Risk-free rate | 1.657% | ||||||||
Maximum [Member] | Restricted Stock [Member] | August 2017 [Member] | Below $15 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | $ 15 | ||||||||
Maximum [Member] | Restricted Stock [Member] | August 2017 [Member] | At or above $15 and below $19 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | 19 | ||||||||
Maximum [Member] | Restricted Stock [Member] | August 2017 [Member] | At or above $19 and below $23 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance target, per share | $ 23 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summarized Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock-Based Compensation [Abstract] | ||||
Outstanding, Number of shares, Beginning Balance | 864,579 | 809,274 | 809,274 | |
Granted, Number of shares | 561,000 | 600,000 | ||
Forfeitures, Number of shares | (200,000) | |||
Outstanding, Number of shares, Ending Balance | 1,425,579 | 1,209,274 | 864,579 | 809,274 |
Exercisable, Number of Shares | 523,914 | |||
Vested and expected to vest, Number of shares | 1,425,579 | |||
Outstanding, Weighted average exercise price, Beginning Balance | $ 7.81 | $ 13.99 | $ 13.99 | |
Granted, Weighted average exercise price | 3.07 | 6.2 | ||
Forfeitures, Weighted average exercise price | 24.46 | |||
Outstanding, Weighted average exercise price, Ending Balance | 5.94 | $ 8.41 | $ 7.81 | $ 13.99 |
Exercisable, Weighted average exercise price | 8.86 | |||
Vested and expected to vest, Weighted average exercise price | $ 5.94 | |||
Outstanding, Weighted average remaining contractual term (in years) | 7 years 9 months 21 days | 6 years 1 month 24 days | 7 years 18 days | 2 years 8 months 1 day |
Granted, Weighted average remaining contractual term (in years) | 10 years | 10 years | ||
Exercisable, Weighted average remaining contractual term (in years) | 5 years 6 months 7 days | |||
Vested and expected to vest, Weighted average remaining contractual term (in years) | 7 years 9 months 21 days | |||
Outstanding, Aggregate intrinsic value, Beginning Balance | $ 0 | $ 370 | $ 370 | |
Granted, Aggregate intrinsic value | 676 | 1,212 | ||
Outstanding, Aggregate intrinsic value, Ending Balance | $ 365 | $ 72 | $ 0 | $ 370 |
Outstanding, Weighted average grant date fair value, Beginning Balance | $ 2.62 | $ 4.2 | $ 4.2 | |
Granted, Weighted average grant date fair value | 1.2 | 2.02 | ||
Forfeitures, Weighted average grant date fair value | 7.17 | |||
Outstanding, Weighted average grant date fair value, Ending Balance | $ 2.07 | $ 2.62 | $ 2.62 | $ 4.2 |
Stock-Based Compensation (Range
Stock-Based Compensation (Range Of Assumptions Used To Value Options Granted) (Details) - Stock Options [Member] | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 57.00% | 44.00% |
Expected dividends | 0.00% | 0.00% |
Expected life (in years) | 3 years | 3 years |
Risk-free rate | 1.57% | 2.75% |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Activity) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Number of Shares of Restricted Stock | 561,000 | 600,000 |
Non-vested, Number of Shares of Restricted Stock, Ending Balance | 583,908 | 860,817 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested, Number of Shares of Restricted Stock, Beginning Balance | 583,908 | 765,411 |
Granted, Number of Shares of Restricted Stock | 148,000 | |
Vested, Number of Shares of Restricted Stock | (52,594) | |
Non-vested, Number of Shares of Restricted Stock, Ending Balance | 583,908 | 860,817 |
Non-vested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 3,410 | $ 6,162 |
Granted, Weighted Average Grant Date Fair Value | 114 | |
Vested, Weighted Average Grant Date Fair Value | 459 | |
Non-vested, Weighted Average Grant Date Fair Value, Ending Balance | $ 3,410 | $ 5,785 |
Stock-Based Compensation (Recor
Stock-Based Compensation (Recorded Net Stock Compensation Charge) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation charge | $ 436 | $ 598 | $ 823 | $ 1,185 |
Total | 436 | 598 | 823 | 1,185 |
Allocated To Selling, General And Administration [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation charge | 436 | 598 | 823 | 1,185 |
Total | $ 436 | $ 598 | $ 823 | $ 1,185 |
(Loss) Earnings Per Share (Narr
(Loss) Earnings Per Share (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Redemptions of common stock or adjustments to redeemable common stock | $ 0 | $ 0 | $ 0 | $ 0 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options outstanding not included in computation of diluted earnings per share | 1,425,579 | 1,166,554 | 1,425,579 | 503,698 |
Options exercise price range, lower limit | $ 3.07 | $ 6.2 | $ 3.07 | $ 8.75 |
Options exercise price range, upper limit | $ 11.23 | $ 13.16 | $ 11.23 | $ 13.16 |
(Loss) Earnings Per Share (Inco
(Loss) Earnings Per Share (Income From Continuing Operations And Share Data Used In Basic And Diluted Earnings Per Share Computations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net (loss) income attributable to Net1 | $ (205) | $ (63,941) | $ (4,597) | $ (69,140) |
Undistributed (loss) earnings | $ (205) | $ (63,941) | $ (4,597) | $ (69,140) |
Percent allocated to common shareholders (Calculation 1) | 99.00% | 98.00% | 99.00% | 99.00% |
Numerator for (loss) earnings per share: basic and diluted | $ (203) | $ (62,972) | $ (4,550) | $ (68,146) |
Continuing | (203) | (64,477) | (4,550) | (71,570) |
Discontinued | $ 0 | $ 1,505 | $ 0 | $ 3,424 |
Denominator for basic (loss) earnings per share: weighted-average common shares outstanding | 55,985 | 55,973 | 55,985 | 55,962 |
Effect of dilutive securities: Stock options | 0 | 21 | 0 | 36 |
Denominator for diluted (loss) earnings per share: adjusted weighted average common shares outstanding and assuming conversion | 55,985 | 55,994 | 55,985 | 55,998 |
(Loss) Earnings per share: Basic | $ 0 | $ (1.13) | $ (0.08) | $ (1.22) |
Continuing | 0 | (1.16) | (0.08) | (1.28) |
Discontinued | 0 | 0.03 | 0 | 0.06 |
(Loss) Earnings per share: Diluted | 0 | (1.12) | (0.08) | (1.22) |
Continuing | 0 | (1.15) | (0.08) | (1.28) |
Discontinued | $ 0 | $ 0.03 | $ 0 | $ 0.06 |
Basic weighted-average common shares outstanding (A) | 55,985 | 55,973 | 55,985 | 55,962 |
Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B) | 56,568 | 56,834 | 56,568 | 56,778 |
Continuing [Member] | ||||
Undistributed (loss) earnings | $ (205) | $ (65,469) | $ (4,597) | $ (72,614) |
Discontinued [Member] | ||||
Undistributed (loss) earnings | $ 0 | $ 1,528 | $ 0 | $ 3,474 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Schedule Of Supplemental Cash Flow Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||||
Cash received from interest | $ 1,042 | $ 1,285 | $ 1,779 | $ 3,362 |
Cash paid for interest | 2,293 | 2,588 | 3,107 | 5,654 |
Cash paid for income taxes | $ 2,004 | $ 8,779 | $ 3,887 | $ 10,122 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Supplemental Cash Flow Disclosure Related To Leases) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 1,108 | $ 2,028 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | $ 2,260 | $ 2,490 |
Revenue Recognition (Revenue Di
Revenue Recognition (Revenue Disaggregated By Major Revenue Streams) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 74,080 | $ 97,150 | $ 154,836 | $ 223,034 |
Continuing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 74,080 | 77,442 | 154,836 | 184,539 |
South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,171 | 20,803 | 35,370 | 55,266 |
International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 34,363 | 38,124 | 68,380 | 77,511 |
Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21,546 | 18,515 | 51,086 | 51,762 |
Processing Fees [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,035 | 19,031 | 33,001 | 49,260 |
Processing Fees [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32,851 | 36,925 | 65,247 | 74,169 |
Welfare Benefit Distribution [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,136 | 3,086 | ||
Welfare Benefit Distribution [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,512 | |||
Telecom Products And Services [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,639 | 3,027 | 15,933 | 7,943 |
Account Holder Fees [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,103 | 3,140 | 8,363 | 13,745 |
Lending Revenue [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,384 | 5,969 | 10,538 | 15,946 |
Technology Products [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,042 | 4,913 | 12,176 | 9,941 |
Insurance Revenue [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,372 | 1,306 | 2,758 | 3,821 |
Other [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,772 | 2,369 | 2,920 | |
Other [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,199 | 3,133 | 3,342 | |
Other [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6 | 160 | 1,318 | 366 |
South Africa [Member] | Continuing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 39,717 | 39,318 | 86,456 | 107,028 |
South Africa [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,171 | 20,803 | 35,370 | 55,266 |
South Africa [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 66,330 | |
South Africa [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21,546 | 18,515 | 51,086 | |
South Africa [Member] | Processing Fees [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,035 | 19,031 | 33,001 | 49,260 |
South Africa [Member] | Processing Fees [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 63,197 | ||
South Africa [Member] | Welfare Benefit Distribution [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,136 | 3,086 | ||
South Africa [Member] | Welfare Benefit Distribution [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
South Africa [Member] | Telecom Products And Services [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,639 | 3,027 | 15,933 | |
South Africa [Member] | Account Holder Fees [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,103 | 3,140 | 8,363 | |
South Africa [Member] | Lending Revenue [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,384 | 5,969 | 10,538 | |
South Africa [Member] | Technology Products [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,042 | 4,913 | 12,176 | |
South Africa [Member] | Insurance Revenue [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,372 | 1,306 | 2,758 | |
South Africa [Member] | Other [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,772 | 2,369 | 2,920 | |
South Africa [Member] | Other [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,133 | |||
South Africa [Member] | Other [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6 | 160 | 1,318 | |
South Korea [Member] | Continuing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33,512 | 35,400 | 66,330 | 71,951 |
South Korea [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
South Korea [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33,512 | 35,400 | 71,951 | |
South Korea [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
South Korea [Member] | Processing Fees [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
South Korea [Member] | Processing Fees [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32,000 | 34,382 | 68,971 | |
South Korea [Member] | Welfare Benefit Distribution [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
South Korea [Member] | Welfare Benefit Distribution [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,512 | |||
South Korea [Member] | Telecom Products And Services [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
South Korea [Member] | Account Holder Fees [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
South Korea [Member] | Lending Revenue [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
South Korea [Member] | Technology Products [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
South Korea [Member] | Insurance Revenue [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
South Korea [Member] | Other [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,018 | 2,980 | ||
South Korea [Member] | Other [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
Rest Of World [Member] | Continuing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 851 | 2,724 | 2,050 | 5,560 |
Rest Of World [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Rest Of World [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 851 | 2,724 | 2,050 | 5,560 |
Rest Of World [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 51,762 | ||
Rest Of World [Member] | Processing Fees [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Rest Of World [Member] | Processing Fees [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 851 | 2,543 | $ 2,050 | 5,198 |
Rest Of World [Member] | Welfare Benefit Distribution [Member] | South African Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
Rest Of World [Member] | Welfare Benefit Distribution [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | |||
Rest Of World [Member] | Telecom Products And Services [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 7,943 | ||
Rest Of World [Member] | Account Holder Fees [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 13,745 | ||
Rest Of World [Member] | Lending Revenue [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 15,946 | ||
Rest Of World [Member] | Technology Products [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 9,941 | ||
Rest Of World [Member] | Insurance Revenue [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 3,821 | ||
Rest Of World [Member] | Other [Member] | International Transaction Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 181 | 362 | ||
Rest Of World [Member] | Other [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 366 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Operating lease expense | $ 1.1 | $ 2 |
Minimum [Member] | ||
Operating leases have a remaining lease term | 1 year | |
Maximum [Member] | ||
Operating leases have a remaining lease term | 5 years | |
Financial Services Business [Member] | Maximum [Member] | ||
Operating leases have a remaining lease term | 1 year |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Disclosure Related To Right-of-use Assets And Operating Leases Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jul. 01, 2019 | Jun. 30, 2019 | [1] |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
Operating lease right-of-use | $ 7,838 | $ 6,739 | $ 0 | |
Weighted average remaining lease term (years) | 3 years 7 months 6 days | 2 years 6 months 3 days | ||
Weighted average discount rate | 10.00% | 10.00% | ||
2020 (for December 31, 2019, excluding three month to December 31, 2019) | $ 2,334 | $ 3,608 | ||
2021 | 3,281 | 2,395 | ||
2022 | 1,850 | 1,269 | ||
2023 | 1,011 | 454 | ||
2024 | 598 | 0 | ||
Thereafter | 204 | 0 | ||
Total undiscounted operating lease liabilities | 9,278 | 7,726 | ||
Less imputed interest | 1,245 | 842 | ||
Total operating lease liabilities, included in | 8,033 | 6,884 | ||
Operating lease right-of-use lease liability - current | 3,534 | 5,098 | 0 | |
Right-of-use operating lease liability - long-term | $ 4,499 | $ 1,786 | $ 0 | |
[1] | Derived from audited financial statements. |
Leases (Supplemental Balance _2
Leases (Supplemental Balance Sheet Disclosure Related To Right-of-use Assets And Operating Leases Liabilities) (Alternate) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jul. 01, 2019 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Due | $ 9,278 | $ 7,726 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 1,245 | 842 |
Operating Lease, Liability | $ 8,033 | $ 6,884 |
Operating Segments (Reconciliat
Operating Segments (Reconciliation Of Reportable Segments Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 74,080 | $ 97,150 | $ 154,836 | $ 223,034 |
Continuing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 74,080 | 77,442 | 154,836 | 184,539 |
Discontinued [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 19,708 | 38,495 | ||
South African Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 18,171 | 20,803 | 35,370 | 55,266 |
International Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 34,363 | 38,124 | 68,380 | 77,511 |
Financial Inclusion And Applied Technologies [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 21,546 | 38,223 | 51,086 | 90,257 |
Financial Inclusion And Applied Technologies [Member] | Continuing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 18,515 | 51,762 | ||
Financial Inclusion And Applied Technologies [Member] | Discontinued [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 19,708 | 38,495 | ||
Reportable Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 76,699 | 98,849 | 160,260 | 229,191 |
Reportable Segment [Member] | Continuing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 76,699 | 79,141 | 160,260 | 190,696 |
Reportable Segment [Member] | Discontinued [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 19,708 | 0 | 38,495 |
Reportable Segment [Member] | South African Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 20,350 | 21,970 | 39,749 | 59,719 |
Reportable Segment [Member] | International Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 34,363 | 38,124 | 68,380 | 77,511 |
Reportable Segment [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 21,986 | 38,755 | 52,131 | 91,961 |
Reportable Segment [Member] | Financial Inclusion And Applied Technologies [Member] | Continuing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 19,047 | 53,466 | ||
Reportable Segment [Member] | Financial Inclusion And Applied Technologies [Member] | Discontinued [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 19,708 | 38,495 | ||
Inter-Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | (2,619) | (1,699) | (5,424) | (6,157) |
Inter-Segment [Member] | Continuing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | (1,699) | (6,157) | ||
Inter-Segment [Member] | Discontinued [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | ||
Inter-Segment [Member] | South African Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | (2,179) | (1,167) | (4,379) | (4,453) |
Inter-Segment [Member] | International Transaction Processing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Inter-Segment [Member] | Financial Inclusion And Applied Technologies [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ (440) | (532) | $ (1,045) | (1,704) |
Inter-Segment [Member] | Financial Inclusion And Applied Technologies [Member] | Continuing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | (532) | (1,704) | ||
Inter-Segment [Member] | Financial Inclusion And Applied Technologies [Member] | Discontinued [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 0 | $ 0 |
Operating Segments (Reconcili_2
Operating Segments (Reconciliation Of Reportable Segments Measure Of Profit Or Loss To Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating (loss) income | $ (6,854) | $ (48,901) | $ (9,588) | $ (53,187) |
Change in fair value of equity securities | 0 | (15,836) | 0 | (15,836) |
Gain on disposal of FIHRST | 9,743 | 0 | 9,743 | 0 |
Interest income | 1,343 | 2,177 | 1,994 | 3,778 |
Interest expense | (3,221) | (2,563) | (4,576) | (5,121) |
Impairment of Cedar Cellular Note | 0 | (2,732) | 0 | (2,732) |
Income (Loss) before income taxes | 1,011 | (67,855) | (2,427) | (73,098) |
Continuing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating (loss) income | (6,854) | (48,901) | (9,588) | (53,187) |
Discontinued [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating (loss) income | 0 | 5,826 | 0 | 11,008 |
Reportable Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating (loss) income | (1,048) | (34,411) | 858 | (23,860) |
Reportable Segment [Member] | Continuing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating (loss) income | (1,048) | (42,840) | 858 | (40,121) |
Reportable Segment [Member] | Discontinued [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating (loss) income | 0 | (8,429) | 0 | (16,261) |
Corporate/Eliminations [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating (loss) income | (5,806) | (8,664) | (10,446) | (18,319) |
Corporate/Eliminations [Member] | Continuing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating (loss) income | (5,806) | (6,061) | (10,446) | (13,066) |
Corporate/Eliminations [Member] | Discontinued [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating (loss) income | $ 0 | $ (2,603) | $ 0 | $ (5,253) |
Operating Segments (Summary Of
Operating Segments (Summary Of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 74,080 | $ 97,150 | $ 154,836 | $ 223,034 |
Operating (loss) income | (6,854) | (48,901) | (9,588) | (53,187) |
Operating (loss) income Total | (6,854) | (43,075) | (9,588) | (42,179) |
Depreciation and amortization | 4,381 | 9,853 | 9,146 | 20,647 |
Expenditures for long-lived assets | 827 | 2,547 | 3,451 | 5,665 |
Continuing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 74,080 | 77,442 | 154,836 | 184,539 |
Operating (loss) income | (6,854) | (48,901) | (9,588) | (53,187) |
Depreciation and amortization | 4,381 | 7,191 | 9,146 | 15,048 |
Expenditures for long-lived assets | 827 | 2,363 | 3,451 | 5,342 |
Discontinued [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 19,708 | 38,495 | ||
Operating (loss) income | 0 | 5,826 | 0 | 11,008 |
Depreciation and amortization | 0 | 2,662 | 0 | 5,599 |
Expenditures for long-lived assets | 0 | 184 | 0 | 323 |
Reportable Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 76,699 | 98,849 | 160,260 | 229,191 |
Operating (loss) income | (1,048) | (34,411) | 858 | (23,860) |
Depreciation and amortization | 2,528 | 3,837 | 5,469 | 8,473 |
Expenditures for long-lived assets | 827 | 2,547 | 3,451 | 5,665 |
Reportable Segment [Member] | Continuing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 76,699 | 79,141 | 160,260 | 190,696 |
Operating (loss) income | (1,048) | (42,840) | 858 | (40,121) |
Reportable Segment [Member] | Discontinued [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 19,708 | 0 | 38,495 |
Operating (loss) income | 0 | (8,429) | 0 | (16,261) |
Corporate/Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating (loss) income | (5,806) | (8,664) | (10,446) | (18,319) |
Depreciation and amortization | (1,853) | (6,016) | (3,677) | (12,174) |
Expenditures for long-lived assets | 0 | 0 | 0 | 0 |
Corporate/Eliminations [Member] | Continuing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating (loss) income | (5,806) | (6,061) | (10,446) | (13,066) |
Depreciation and amortization | (1,853) | (3,413) | (3,677) | (6,921) |
Corporate/Eliminations [Member] | Discontinued [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating (loss) income | 0 | (2,603) | 0 | (5,253) |
Depreciation and amortization | 0 | (2,603) | 0 | (5,253) |
South African Transaction Processing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 18,171 | 20,803 | 35,370 | 55,266 |
South African Transaction Processing [Member] | Reportable Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 20,350 | 21,970 | 39,749 | 59,719 |
Operating (loss) income | (2,981) | (11,830) | (6,366) | (15,343) |
Depreciation and amortization | 664 | 921 | 1,325 | 1,862 |
Expenditures for long-lived assets | 157 | 1,047 | 2,021 | 2,333 |
International Transaction Processing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 34,363 | 38,124 | 68,380 | 77,511 |
International Transaction Processing [Member] | Reportable Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 34,363 | 38,124 | 68,380 | 77,511 |
Operating (loss) income | 2,811 | (4,043) | 6,601 | (1,281) |
Depreciation and amortization | 1,481 | 2,511 | 3,377 | 5,570 |
Expenditures for long-lived assets | 616 | 841 | 1,293 | 1,641 |
Financial Inclusion And Applied Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 21,546 | 18,515 | 51,086 | 51,762 |
Financial Inclusion And Applied Technologies [Member] | Reportable Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 21,986 | 38,755 | 52,131 | 91,961 |
Operating (loss) income | (878) | (18,538) | 623 | (7,236) |
Depreciation and amortization | 383 | 405 | 767 | 1,041 |
Expenditures for long-lived assets | 54 | 659 | 137 | 1,691 |
Financial Inclusion And Applied Technologies [Member] | Reportable Segment [Member] | Continuing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 21,986 | 19,047 | 52,131 | 53,466 |
Operating (loss) income | (878) | (26,967) | 623 | (23,497) |
Depreciation and amortization | 383 | 346 | 767 | 695 |
Expenditures for long-lived assets | 54 | 475 | 137 | 1,368 |
Financial Inclusion And Applied Technologies [Member] | Reportable Segment [Member] | Discontinued [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 19,708 | 0 | 38,495 |
Operating (loss) income | 0 | 8,429 | 0 | 16,261 |
Depreciation and amortization | 0 | 59 | 0 | 346 |
Expenditures for long-lived assets | $ 0 | $ 184 | $ 0 | $ 323 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 30, 2019 |
Valuation Allowance [Line Items] | ||
Accrued interest related to uncertain tax positions | $ 0.1 | |
Unrecognized tax benefit | $ 1.6 | $ 1.2 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) R in Millions, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019ZAR (R) |
Guarantor Obligations [Line Items] | ||
Maximum payment amount under guarantee | $ 6.7 | R 93.6 |
Unsecured Counter Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee amount | $ 6.7 | R 93.6 |
Payment Guarantee [Member] | Minimum [Member] | ||
Guarantor Obligations [Line Items] | ||
Commission charge rate | 0.40% | 0.40% |
Payment Guarantee [Member] | Maximum [Member] | ||
Guarantor Obligations [Line Items] | ||
Commission charge rate | 1.94% | 1.94% |
Nedbank [Member] | Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee amount | $ 6.7 | R 93.6 |
Discontinued Operations - DNI_2
Discontinued Operations - DNI (Narrative) (Details) | 6 Months Ended |
Dec. 31, 2018 | |
DNI [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Percentage of ownership interest prior to disposal | 30.00% |
Discontinued Operations - DNI_3
Discontinued Operations - DNI (Impact Of Deconsolidation Of DNI On Statement Of Operations And Statement Of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income from discontinued operations | $ 0 | $ 3,779 | $ 0 | $ 7,418 |
DNI [Member] | ||||
Revenue | $ 0 | 19,708 | $ 0 | 38,495 |
Cost of goods sold, IT processing, servicing and support | 9,954 | 20,166 | ||
Selling, general and administration | 1,266 | 1,722 | ||
Depreciation and amortization | 2,662 | 5,599 | ||
Operating income | 5,826 | 11,008 | ||
Interest income | 224 | 499 | ||
Interest expense | 215 | 416 | ||
Net income before tax | 5,835 | 11,091 | ||
Income tax expense | 2,100 | 3,615 | ||
Net income before earnings from equity-accounted investments | 3,735 | 7,476 | ||
Earnings from equity-accounted investments | 44 | (58) | ||
Net income from discontinued operations | 3,779 | 7,418 | ||
Total net cash (used in) provided by operating activities | 10,546 | 7,028 | ||
Total net cash (used in) provided by investing activities | $ (172) | $ (197) |
Discontinued Operations - DNI_4
Discontinued Operations - DNI (Schedule Of Revenues And Expenses After DNI Disposal Transaction) (Details) - DNI [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue generated from transactions with DNI | $ 0 | $ 19,708 | $ 0 | $ 38,495 |
Expenses incurred related to transactions with DNI | $ 333 | $ 2,607 |