Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Aug. 25, 2014 | Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'NET 1 UEPS TECHNOLOGIES INC | ' | ' |
Entity Central Index Key | '0001041514 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $218,600,379 |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 47,819,299 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $58,672 | $53,665 |
Pre-funded social welfare grants receivable (Note 4) | 4,809 | 2,934 |
Accounts receivable, net (Note 5) | 148,067 | 102,614 |
Finance loans receivable, net (Note 5) | 53,124 | 8,350 |
Inventory (Note 6) | 10,785 | 12,222 |
Deferred income taxes (Note 20) | 7,451 | 4,938 |
Total current assets before settlement assets | 282,908 | 184,723 |
Settlement assets | 725,987 | 752,476 |
Total current assets | 1,008,895 | 937,199 |
PROPERTY, PLANT AND EQUIPMENT, net (Note 8) | 47,797 | 48,301 |
EQUITY-ACCOUNTED INVESTMENTS | 878 | 1,183 |
GOODWILL (Note 9) | 186,576 | 175,806 |
INTANGIBLE ASSETS, net (Note 9) | 68,514 | 77,257 |
OTHER LONG-TERM ASSETS (Note 7 and Note 10) | 38,285 | 36,576 |
TOTAL ASSETS | 1,350,945 | 1,276,322 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 17,101 | 26,567 |
Other payables (Note11) | 42,257 | 33,808 |
Current portion of long-term borrowings (Note 13) | 14,789 | 14,209 |
Income taxes payable | 7,676 | 2,275 |
Total current liabilities before settlement obligations | 81,823 | 76,859 |
Settlement obligations | 725,987 | 752,476 |
Total current liabilities | 807,810 | 829,335 |
DEFERRED INCOME TAXES (Note 20) | 15,522 | 18,727 |
LONG-TERM BORROWINGS (Note 13) | 62,388 | 66,632 |
OTHER LONG-TERM LIABILITIES (Note 10) | 23,477 | 21,659 |
TOTAL LIABILITIES | 909,197 | 936,353 |
COMMITMENTS AND CONTINGENCIES (Note 24) | ' | ' |
EQUITY | ' | ' |
COMMON STOCK (Note 14) Authorized: 200,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury - 2014: 47,819,299; 2013: 45,592,550 | 63 | 59 |
PREFERRED STOCK Authorized shares: 50,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury: 2014: -; 2013: - | ' | ' |
ADDITIONAL PAID-IN CAPITAL | 202,401 | 160,670 |
TREASURY SHARES, AT COST: 2014: 15,883,212; 2013: 13,455,090 (Note 14) | -200,681 | -175,823 |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Note 15) | -82,741 | -100,858 |
RETAINED EARNINGS | 522,729 | 452,618 |
TOTAL NET1 EQUITY | 441,771 | 336,666 |
NON-CONTROLLING INTEREST | -23 | 3,303 |
TOTAL EQUITY | 441,748 | 339,969 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,350,945 | $1,276,322 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Consolidated Balance Sheets [Abstract] | ' | ' |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares issued | 47,819,299 | 45,592,550 |
Common stock, shares outstanding | 47,819,299 | 45,592,550 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury shares, shares outstanding | 15,883,212 | 13,455,090 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Consolidated Statements Of Operations [Abstract] | ' | ' | ' |
REVENUE (Note 16) | $581,656 | $452,147 | $390,264 |
Services rendered | 518,297 | 430,268 | 362,679 |
Loan-based fees received | 33,560 | 6,613 | 8,433 |
Sale of goods | 29,799 | 15,266 | 19,152 |
EXPENSE | ' | ' | ' |
Cost of goods sold, IT processing, servicing and support | 260,232 | 196,834 | 141,000 |
Selling, general and administration | 168,072 | 191,552 | 137,404 |
Equity instruments issued pursuant to BEE transactions (Note 17) | 11,268 | ' | 14,211 |
Depreciation and amortization | 40,286 | 40,599 | 36,499 |
OPERATING INCOME | 101,798 | 23,162 | 61,150 |
INTEREST INCOME | 14,817 | 12,083 | 8,576 |
INTEREST EXPENSE | 7,473 | 7,966 | 9,345 |
INCOME BEFORE INCOME TAXES | 109,142 | 27,279 | 60,381 |
INCOME TAX EXPENSE (Note 20) | 39,379 | 14,656 | 15,936 |
NET INCOME BEFORE EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS | 69,763 | 12,623 | 44,445 |
EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS | 298 | 351 | 220 |
NET INCOME | 70,061 | 12,974 | 44,665 |
(ADD) LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | -50 | -3 | 14 |
NET INCOME ATTRIBUTABLE TO NET1 | $70,111 | $12,977 | $44,651 |
Net income per share, in United States dollars: (Note 21) | ' | ' | ' |
Basic earnings attributable to Net1 shareholders | $1.51 | $0.28 | $0.99 |
Diluted earnings attributable to Net1 shareholders in $ | $1.50 | $0.28 | $0.99 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' | ' |
NET INCOME | $70,061 | $12,974 | $44,665 |
OTHER COMPREHENSIVE INCOME (LOSS): | ' | ' | ' |
Net unrealized income on asset available for sale, net of tax | 288 | 915 | 1,547 |
Release of foreign currency translation reserve related to sale/ liquidation of businesses (Note 19) | 4,277 | ' | ' |
Movement in foreign currency translation reserve | 13,730 | -26,051 | -43,617 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 18,295 | -25,136 | -42,070 |
COMPREHENSIVE INCOME (LOSS) | 88,356 | -12,162 | 2,595 |
Add comprehensive loss attributable to non-controlling interest | 50 | 3 | 113 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NET1 | $88,406 | ($12,159) | $2,708 |
Consolidated_Statement_Of_Chan
Consolidated Statement Of Changes In Equity (USD $) | Common Stock [Member] | Treasury Stock [Member] | Number Of Shares, Net Of Treasury [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total Net1 Equity [Member] | Non-Controlling Interest [Member] | Total |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Jun. 30, 2011 | $59 | ($174,694) | ' | $138,420 | $394,990 | ($33,779) | $324,996 | $3,014 | $328,010 |
Balance, shares at Jun. 30, 2011 | 58,427,239 | ' | 45,152,805 | ' | ' | ' | ' | ' | ' |
Treasury Stock, Shares, Balance at Jun. 30, 2011 | ' | -13,274,434 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock granted (Note 18), shares | 582,729 | ' | 582,729 | ' | ' | ' | ' | ' | ' |
Stock-based compensation charge (Note 18) | ' | ' | ' | 2,909 | ' | ' | 2,909 | ' | 2,909 |
Reversal of stock-based compensation charge (Note 18) | ' | ' | ' | -134 | ' | ' | -134 | ' | -134 |
Reversal of stock-based compensation charge (Note 18), shares | -5,976 | ' | -5,976 | ' | ' | ' | ' | ' | ' |
Equity instruments charge (Note 17) | ' | ' | ' | 14,211 | ' | ' | 14,211 | ' | 14,211 |
Treasury shares acquired (Note 14) | ' | -1,129 | ' | ' | ' | ' | -1,129 | ' | -1,129 |
Treasury shares acquired (Note 14), shares | ' | -180,656 | -180,656 | ' | ' | ' | ' | ' | -180,656 |
Utilization of APIC pool related to vested restricted stock | ' | ' | ' | -56 | ' | ' | -56 | ' | -56 |
Liquidation of SmartSwitch Nigeria (Note 19) | ' | ' | ' | ' | ' | ' | ' | 280 | 280 |
Sale of 10% of SmartLife (Note 3) | ' | ' | ' | ' | ' | ' | ' | 188 | 188 |
Purchase accounting adjustment | ' | ' | ' | ' | ' | ' | ' | -63 | -63 |
Net income | ' | ' | ' | ' | 44,651 | ' | 44,651 | 14 | 44,665 |
Other comprehensive income (loss) (Note 15) | ' | ' | ' | ' | ' | -41,943 | -41,943 | -127 | -42,070 |
Balance at Jun. 30, 2012 | 59 | -175,823 | ' | 155,350 | 439,641 | -75,722 | 343,505 | 3,306 | 346,811 |
Treasury Stock, Shares, Balance at Jun. 30, 2012 | ' | -13,455,090 | ' | ' | ' | ' | ' | ' | ' |
Balance, shares at Jun. 30, 2012 | 59,003,992 | ' | 45,548,902 | ' | ' | ' | ' | ' | 45,548,902 |
Restricted stock granted (Note 18), shares | 21,569 | ' | 21,569 | ' | ' | ' | ' | ' | ' |
Exercise of stock option (Note 18) | ' | ' | ' | 240 | ' | ' | 240 | ' | 240 |
Exercise of stock options (Note 18), shares | 30,000 | ' | 30,000 | ' | ' | ' | ' | ' | 30,000 |
Stock-based compensation charge (Note 18) | ' | ' | ' | 4,387 | ' | ' | 4,387 | ' | 4,387 |
Reversal of stock-based compensation charge (Note 18) | ' | ' | ' | -480 | ' | ' | -480 | ' | -480 |
Reversal of stock-based compensation charge (Note 18), shares | -55,333 | ' | -55,333 | ' | ' | ' | ' | ' | ' |
Utilization of APIC pool related to vested restricted stock | ' | ' | ' | -11 | ' | ' | -11 | ' | -11 |
NIMSs acquisition (Note 3) | ' | ' | ' | 1,184 | ' | ' | 1,184 | ' | 1,184 |
NIMSs acquisition (Note 3), shares | 47,412 | ' | 47,412 | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | 12,977 | ' | 12,977 | -3 | 12,974 |
Other comprehensive income (loss) (Note 15) | ' | ' | ' | ' | ' | -25,136 | -25,136 | ' | -25,136 |
Balance at Jun. 30, 2013 | 59 | -175,823 | ' | 160,670 | 452,618 | -100,858 | 336,666 | 3,303 | 339,969 |
Treasury Stock, Shares, Balance at Jun. 30, 2013 | ' | -13,455,090 | ' | ' | ' | ' | ' | ' | -13,455,090 |
Balance, shares at Jun. 30, 2013 | 59,047,640 | ' | 45,592,550 | ' | ' | ' | ' | ' | 45,592,550 |
Issue of common stock (Note 14) | 4 | ' | ' | 25,050 | ' | ' | 25,054 | ' | 25,054 |
Issue of common stock (Note 14), shares | 4,400,000 | ' | 4,400,000 | ' | ' | ' | ' | ' | ' |
Restricted stock granted (Note 18), shares | 187,963 | ' | 187,963 | ' | ' | ' | ' | ' | ' |
Exercise of stock option (Note 18) | ' | ' | ' | 198 | ' | ' | 198 | ' | 198 |
Exercise of stock options (Note 18), shares | 26,667 | ' | 26,667 | ' | ' | ' | ' | ' | 26,667 |
Stock-based compensation charge (Note 18) | ' | ' | ' | 3,724 | ' | ' | 3,724 | ' | 3,724 |
Reversal of stock-based compensation charge (Note 18) | ' | ' | ' | -6 | ' | ' | -6 | ' | -6 |
Reversal of stock-based compensation charge (Note 18), shares | -7,171 | ' | -7,171 | ' | ' | ' | ' | ' | ' |
Equity instruments charge (Note 17) | ' | ' | ' | 11,268 | ' | ' | 11,268 | ' | 11,268 |
Treasury shares acquired (Note 14) | ' | -24,858 | ' | ' | ' | ' | -24,858 | ' | -24,858 |
Treasury shares acquired (Note 14), shares | ' | -2,428,122 | -2,428,122 | ' | ' | ' | ' | ' | -2,428,122 |
Income tax benefit from vested stock awards | ' | ' | ' | 5 | ' | ' | 5 | ' | 5 |
Acquisition of KSNET non-controlling interest (Note 14) | ' | ' | ' | 1,492 | ' | -178 | 1,314 | -3,276 | -1,962 |
NIMSs acquisition (Note 3), shares | 47,412 | ' | 47,412 | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | 70,111 | ' | 70,111 | -50 | 70,061 |
Other comprehensive income (loss) (Note 15) | ' | ' | ' | ' | ' | 18,295 | 18,295 | ' | 18,295 |
Balance at Jun. 30, 2014 | $63 | ($200,681) | ' | $202,401 | $522,729 | ($82,741) | $441,771 | ($23) | $441,748 |
Treasury Stock, Shares, Balance at Jun. 30, 2014 | ' | -15,883,212 | ' | ' | ' | ' | ' | ' | -15,883,212 |
Balance, shares at Jun. 30, 2014 | 63,702,511 | ' | 47,819,299 | ' | ' | ' | ' | ' | 47,819,299 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
NET INCOME | $70,061 | $12,974 | $44,665 |
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: | ' | ' | ' |
Depreciation and amortization | 40,286 | 40,599 | 36,499 |
Earnings from equity-accounted investments | -298 | -351 | -220 |
Fair value adjustment | -55 | 631 | -3,375 |
Interest payable | 2,100 | 4,313 | 8,823 |
Facility fee amortized | 738 | 302 | 389 |
(Profit) Loss on disposal of property, plant and equipment | -434 | 110 | -64 |
Net loss on sale of 10% of Smart Life | ' | ' | 81 |
Loss (Profit) on deconsolidation of subsidiaries and business (Note 19) | 55 | ' | -3,994 |
Realized loss on sale of Smart Life investments | ' | ' | 25 |
Stock-based compensation charge, net of forfeitures (Note 18) | 3,718 | 3,907 | 2,775 |
Fair value of BEE equity instruments granted (Note 17) | 11,268 | ' | 14,211 |
Increase in accounts and finance loans receivable, and pre-funded grants receivable | -101,447 | -5,726 | -31,974 |
Decrease (Increase) in inventory | 780 | -2,890 | -5,271 |
Increase (Decrease) in accounts payables and other payables | 12,671 | 8,113 | -18,496 |
Increase (Decrease) in taxes payable | 5,523 | -2,748 | -7,483 |
Decrease in deferred taxes | -7,821 | -3,317 | -16,185 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 37,145 | 55,917 | 20,406 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -23,906 | -22,747 | -39,167 |
Proceeds from disposal of property, plant and equipment | 2,990 | 510 | 764 |
Net cash outflow from sale of MediKredit (Note 19) | -669 | ' | ' |
Proceeds from sale of business (Note 19) | 186 | ' | ' |
Capital reduction/ repayment of loan by equity-accounted investment | 539 | 3 | 122 |
Acquisitions, net of cash acquired (Note 3) | ' | -2,143 | -6,154 |
Settlement from former shareholders of KSNET (Note 3) | ' | ' | 4,945 |
Acquisition of available-for-sale securities (Note 7) | ' | ' | -948 |
Purchase of investments related to Smart Life | ' | ' | -2,320 |
Proceeds from maturity of investments related to Smart Life | ' | ' | 2,321 |
Other investing activities, net | 570 | 545 | -1 |
Net change in settlement assets | -1,350 | -423,984 | -252,101 |
NET CASH USED IN INVESTING ACTIVITIES | -21,640 | -447,816 | -292,539 |
CASH FLOW FROM FINANCING ACTIVITIES | ' | ' | ' |
Repayment of long-term borrowings (Note 13) | -87,008 | -14,508 | -19,172 |
Long-term borrowings obtained (Note 13) | 73,677 | ' | ' |
Repayment of bank overdraft | 24,580 | ' | ' |
Repayment of bank overdraft | -23,335 | ' | ' |
Acquisition of interests in KSNET (Note 14) | -1,968 | ' | ' |
Payment of facility fee (Note 13) | -872 | ' | ' |
Proceeds from issue of common stock (Note 18) | 198 | 240 | ' |
Acquisition of treasury stock (Note 14) | ' | ' | -1,129 |
Proceeds on sale of 10% of Smart Life (Note 3) | ' | ' | 107 |
Net change in settlement obligations | 1,350 | 423,984 | 252,101 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | -13,378 | 409,716 | 231,907 |
Effect of exchange rate changes on cash | 2,880 | -3,275 | -15,914 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 5,007 | 14,542 | -56,140 |
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR | 53,665 | 39,123 | 95,263 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $58,672 | $53,665 | $39,123 |
Description_Of_Business_And_Ba
Description Of Business And Basis Of Presentation | 12 Months Ended |
Jun. 30, 2014 | |
Description Of Business And Basis Of Presentation [Abstract] | ' |
Description Of Business And Basis Of Presentation | ' |
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
Description of Business | |
Net 1 UEPS Technologies, Inc. ("Net1" and collectively with its consolidated subsidiaries, the "Company") was incorporated in the State of Florida on May 8, 1997. The Company provides payment solutions and transaction processing services across a wide range of industries and in various geographies. It has developed and markets a smart-card based alternative payment system for the unbanked and underbanked populations of developing economies. Its universal electronic payment system ("UEPS") uses biometrically secure smart cards that operate in real-time but offline, which allows users to enter into transactions at any time with other card holders in even the most remote areas. The Company also develops and provides secure transaction technology solutions and services, and offers transaction processing, financial and on-line real-time healthcare management solutions in the United States. The Company's technology is widely used in South Africa today, where it distributes pension and welfare payments to recipient cardholders in South Africa, provides financial services, processes debit and credit card payment transactions on behalf of retailers through its EasyPay system, processes value-added services such as bill payments and prepaid electricity for the major bill issuers and local councils in South Africa, processes third-party and associated payroll payments for employees and provides mobile telephone top-up transactions for the major South African mobile carriers. Through KSNET, the Company offers card processing, payment gateway ("PG") and banking value-added network services ("VAN") in South Korea. | |
Basis of presentation | |
The accompanying consolidated financial statements include subsidiaries over which Net1 exercises control and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Jun. 30, 2014 | ||
Significant Accounting Policies [Abstract] | ' | |
Significant Accounting Policies | ' | |
2. SIGNIFICANT ACCOUNTING POLICIES | ||
Principles of consolidation | ||
The financial statements of entities which are controlled by Net1, referred to as subsidiaries, are consolidated. Inter-company accounts and transactions are eliminated upon consolidation. | ||
The Company, if it is the primary beneficiary, consolidates entities which are considered to be variable interest entities ("VIE"). The primary beneficiary is considered to be the entity that will absorb a majority of the entity's expected losses, receive a majority of the entity's expected residual returns, or both. No entities were required to be consolidated in terms of these requirements during the years ended June 30, 2014, 2013 and 2012. | ||
Use of estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Translation of foreign currencies | ||
The primary functional currency of the Company is the South African Rand ("ZAR") and its reporting currency is the US dollar. The Company also has consolidated entities which have other currencies, primarily South Korean won ("KRW"), as their functional currency. Assets and liabilities are translated at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at average rates for the period. Translation gains and losses are reported in accumulated other comprehensive income in total equity. | ||
Foreign exchange transactions are translated at the spot rate ruling at the date of the transaction. Monetary items are translated at the closing spot rate at the balance sheet date. Transactional gains and losses are recognized in selling, general and administration expense on the Company's consolidated statement of operations for the period. | ||
Allowance for doubtful accounts receivable | ||
Allowance for doubtful finance loans receivable | ||
The Company regularly reviews the ageing of outstanding amounts due from borrowers and adjusts the allowance based on management's estimate of the recoverability of the finance loans receivable. The Company writes off finance loans receivable and related service fees if a borrower is in arrears with repayments for more than three months or dies. | ||
Allowance for doubtful accounts receivable | ||
A specific provision is established where it is considered likely that all or a portion of the amount due from customers renting point of sale ("POS") equipment, receiving support and maintenance or transaction services or purchasing licenses from the Company will not be recovered. Non-recoverability is assessed based on a review by management of the ageing of outstanding amounts, the location of the customer and the payment history in relation to those specific amounts. | ||
Inventory | ||
Inventory is valued at the lower of cost and market value. Cost is determined on a first-in, first-out basis and includes transport and handling costs. | ||
Equity-accounted investments | ||
The Company uses the equity method to account for investments in companies when it has significant influence but not control over the operations of the equity-accounted company. Under the equity method, the Company initially records the investment at cost and then adjusts the carrying value of the investment to recognize the proportional share of the equity-accounted company's net income or loss. The Company does not recognize cumulative losses in excess of its investment or loans in an equity-accounted investment except if it has an obligation to provide additional financial support. Dividends received from an equity-accounted investment reduce the carrying value of the Company's investment. | ||
Leasehold improvement costs | ||
Costs incurred in the adaptation of leased properties to serve the requirements of the Company are capitalized and amortized over the shorter of the estimated useful life of the asset and the remaining term of the lease. | ||
Property, plant and equipment | ||
Property, plant and equipment are shown at cost less accumulated depreciation. Property, plant and equipment are depreciated on the straight-line basis at rates which are estimated to amortize the assets to their anticipated residual values over their useful lives. Within the following asset classifications, the expected economic lives are approximately: | ||
Computer equipment | 3to 5 years | |
Office equipment | 2 to 10 years | |
Vehicles | 4 to 8 years | |
Furniture and fittings | 5 to 10 years | |
Plant and equipment | 5 to 10 years | |
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in income. | ||
Goodwill | ||
Goodwill represents the excess of the purchase price of an acquired enterprise over the fair values of the identifiable assets acquired and liabilities assumed. The Company tests for impairment of goodwill on an annual basis and at any other time if events or circumstances change that would more likely than not reduce the fair value of the reporting unit goodwill below its carrying amount. | ||
Circumstances that could trigger an impairment test include but are not limited to: a significant adverse change in the business climate or legal factors; an adverse action or assessment by a regulator; unanticipated competition; loss of key personnel; the likelihood that a reporting unit or significant portion of a reporting unit will be sold or otherwise disposed; and results of testing for recoverability of a significant asset group within a reporting unit. | ||
If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recorded in the statement of operations. Measurement of the fair value of a reporting unit is based on one or more of the following fair value measures: the amount at which the unit as a whole could be bought or sold in a current transaction between willing parties; present value techniques of estimated future cash flows; or valuation techniques based on multiples of earnings or revenue, or a similar performance measure. | ||
Intangible assets | ||
Intangible assets are shown at cost less accumulated amortization. Intangible assets are amortized over the following useful lives: | ||
Customer relationships | 1 to 15 years | |
Software and unpatented technology | 3 to 5 years | |
FTS patent | 10 years | |
Exclusive licenses | 7 years | |
Trademarks | 3 to 20 years | |
Customer databases | 3 years | |
Intangible assets are periodically evaluated for recoverability, and those evaluations take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. | ||
Policy reserves and liabilities | ||
Reserves for future policy benefits and claims payable | ||
The Company determines its reserves for future policy benefits under its life insurance products using the financial soundness valuation method and assumptions as of the issue date as to mortality, interest, persistency and expenses plus provisions for adverse deviations. | ||
Deposits on investment contracts | ||
For the Company's interest-sensitive life contracts, liabilities approximate the policyholder's account value. For deferred annuities, the fixed option on variable annuities, guaranteed investment contracts and other investment contracts, the liability is the policyholder's account value. | ||
Reinsurance contracts held | ||
The Company enters into reinsurance contracts with reinsurers under which the Company is compensated for the entire amount or a portion of losses arising on one or more of the insurance contracts it issues. | ||
The expected benefits to which the Company is entitled under its reinsurance contracts held are recognized as reinsurance assets. These assets consist of short-term balances due from reinsurers (classified within accounts receivable, net) as well as long-term receivables (classified within other long-term assets) that are dependent on the present value of expected claims and benefits arising net of expected premiums payable under the related reinsurance contracts. Amounts recoverable from or due to reinsurers are measured consistently with the amounts associated with the reinsured contracts and in accordance with the terms of each reinsurance contract. | ||
Reinsurance assets are assessed for impairment at each balance sheet date. If there is reliable objective evidence that amounts due may not be recoverable, the Company reduces the carrying amount of the reinsurance asset to its recoverable amount and recognizes that impairment loss in its condensed consolidated statement of operations. | ||
Reinsurance premiums are recognized when due for payment under each reinsurance contract. | ||
Sales taxes | ||
Revenue and expenses are presented net of sales, use and value added taxes, as the case may be. | ||
Revenue recognition | ||
The Company recognizes revenue when: | ||
there is persuasive evidence of an agreement or arrangement; | ||
delivery of products has occurred or services have been rendered; | ||
the seller's price to the buyer is fixed or determinable; and | ||
collectability is reasonably assured. | ||
Fees | ||
Pension and welfare and South African participating merchants | ||
The Company provides a welfare benefit distribution service to the South Africa Social Security Agency. Fee income received for these services is recognized in the statement of operations when distributions have been made to the recipient cardholders. | ||
Recipient cardholders are able to load their welfare grants at merchants enrolled in the Company's participating merchant system in certain provinces. There is no charge to the recipient cardholders to load the grant onto a smart card at the merchant location, however, a fee is charged to the merchant for purchases made at the merchant using the smart card. A fee is also charged to the merchant when the recipient cardholders makes a cash withdrawal. Fee income received for these services is recognized in the statement of operations when the transaction occurs. | ||
Card VAN, banking VAN and payment gateway | ||
Card VAN services consist of services relating to authorization of credit card transactions including transmission of transaction details ("authorization service"), and collection of receipts associated with the credit card transactions ("collection service"). With its authorization service, the Company connects credit card companies with merchants online when a customer uses his/her credit card via terminals installed at merchants' sites and the Company's central processing server for approval of credit card transactions. Immediately after approval of credit card transactions, the Company transmits details of the transactions to credit card companies online for processing payments. Collection service captures the transaction data and gathers receipts as documented evidence and provides them to credit card companies upon request. The Company earns service fees based on the number of transactions processed for credit card companies when services are rendered in accordance with the contracts entered into between credit card companies and the Company. The Company bills for its service charges to credit card companies each month. Each service could be provided either individually or collectively, based on terms of contracts. | ||
The Company charges commission fees to credit card companies for the authorization service provided based on the number of approvals transferred. The right to receive a service fee is due once a credit card transaction has been approved and details of the transaction are transmitted by the Company. Therefore, revenues from the authorization service are recognized when the credit card transactions are authorized and details of the transactions are transmitted. The Company earns a collection service fee once it has provided settled funds to the credit card companies. Therefore, revenue from the collection service is recognized when the Company collects the receipts and provides them to the card companies. | ||
For multiple-element arrangements, the Company has identified two deliverables. The first deliverable is the authorization service, and the second deliverable is the collection service. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value and there are no customer-negotiated refunds or return rights for the delivered elements. If the arrangement includes a customer-negotiated refund or return right relative to the delivered item and the delivery and performance of the undelivered item is considered probable and substantially in the Company's control, the delivered element constitutes a separate unit of accounting. In instances when the aforementioned criteria are not met, the deliverable is combined with the undelivered elements and the allocation of the arrangement consideration and revenue recognition is determined for the combined unit as single unit. Allocation of the consideration is determined at arrangement inception on the basis of each unit's relative selling price In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value ("VSOE"), (ii) third-party evidence of selling price ("TPE"), and (iii) best estimate of the selling price ("ESP"). | ||
VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. ESPs reflect the Company's best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. Because the Company has neither VSOE nor TPE for the two deliverables, the allocation of revenue has been based on the Company's ESPs. Amounts allocated to the authorization and the collection service are recognized at the time of service provided, the other conditions for revenue recognition have been met. | ||
The Company's process for determining its ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. Key factors considered by the Company in developing the ESPs include prices charged by the Company, historical pricing practices and controls, range of prices for various customers and the nature of the services. Consideration is also given to market conditions such as competitor pricing strategies and market perception. | ||
Banking VAN is a division supporting a company's fund management business (large payment transfers, collections, etc.) by relaying financial transactions between client companies and financial institutions. Financial transactions between two or more business enterprises, or between business enterprises and their customers, are conducted through the transaction-processing network established between the Company and the banks. Revenue from the banking VAN service is recognized when the service is rendered by the Company. | ||
With its PG service, the Company provides the Internet-based settlement service between an on-line shopping mall and a credit card company when a customer uses his/her credit card, debit card or on-line payment to pay for goods or services. The Company receives fees for carrying out settlements for electronic transactions. Revenue from the PG service is recognized when the service is rendered by the Company. | ||
Microlending service fee | ||
The Company provides short-term loans to customers in South Africa and charges and recognizes monthly service fee revenue over the term of the loan. The monthly service fee amount is fixed upon initiation and does not change over the term of the loan. | ||
Other fees and commissions | ||
The Company provides an automated payment collection service to third parties, for which it charges monthly fees. These fees are recognized in the statement of operations as the underlying services are performed. | ||
The Company provides medical-related claims adjudication, reconciliation and settlement services ("medical-related claim service") to customers, for which it charges fees. These fees are recognized in the statement of operations as the underlying services are performed. The Company sells prepaid electricity and recognizes a commission in its statement of operations once the prepaid electricity token has been delivered to the customer. | ||
Contract variations fees | ||
The Company records additional revenue from variations to contracts for the provision of welfare benefits, if: | ||
there is persuasive evidence of an agreement; | ||
collectability is reasonably assured; and | ||
all material terms and conditions of the agreement have been adhered to. | ||
Hardware and prepaid airtime voucher sales | ||
Revenue from hardware and airtime voucher sales is recognized when risk of loss has transferred to the customer and there are no unfulfilled Company obligations that affect the customer's final acceptance of the arrangement. Any cost of warranties and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenue is recognized. | ||
The Company buys terminals from manufacturers, and subsequently sells them through its agencies. Revenue is recognized when significant risks and rewards of ownership of terminals have passed to the buyer, usually on delivery of the terminals to the buyer. | ||
To the extent that sales of hardware are made in an arrangement that includes software that is more than incidental, the Company considers post-contract maintenance and technical support or other future obligations which could impact the timing and amount of revenue recognized. | ||
Software | ||
Revenue from licensed software is recognized on a subscription basis over the period that the client is entitled to use the license. Revenue from the sale of software is recognized if all revenue recognition criteria have been met. Post-contract maintenance and technical support in respect of software is generally negotiated and sold as a separate service and is recognized over the period such items are delivered. | ||
Systems implementation projects | ||
The Company undertakes smart card system implementation projects. The hardware and software installed in these projects are in the form of customized systems, which ordinarily involve modification to meet the customer's specifications. Software delivered under such arrangements is available to the customer permanently, subject to the payment of annual license fees. Revenue for such arrangements is recognized under the percentage of completion method, save for annual license fees, which are recognized in the period to which they relate. Up-front and interim payments received are recorded as client deposits until customer acceptance. | ||
The Company's customer arrangements may have multiple deliverables. Generally, the Company's multiple element arrangements fall within the scope of specific accounting standards that provide guidance regarding the separation of elements in multiple-deliverable arrangements and the allocation of consideration among those elements. If not, the Company unbundles multiple element arrangements into separate units of accounting when the delivered element(s) has stand-alone value and fair value of the undelivered element(s) exists. | ||
Terminal rental income | ||
The Company leases terminals to merchants participating in its merchant acquiring system. Operating rental income is recognized monthly on a straight-line basis in accordance with the lease agreement. | ||
Other income | ||
Revenue from service and maintenance activities is charged to customers on a time-and-materials basis and is recognized in the statement of operations as services are delivered to customers. | ||
Research and development expenditure | ||
Research and development expenditures is charged to net income in the period in which it is incurred. During the years ended June 30, 2013, 2012 and 2011, the Company incurred research and development expenditures of $2.2 million, $1.3 million and $3.9 million, respectively. | ||
Computer software development | ||
Product development costs in respect of software intended for sale to licensees are expensed as incurred until technological feasibility is attained. Technological feasibility is attained when the Company's software has completed system testing and has been determined to be viable for its intended use. The time between the attainment of technological feasibility and completion of software development is generally short with immaterial amounts of development costs incurred during this period. | ||
Costs in respect of the development of software for the Company's internal use are expensed as incurred, except to the extent that these costs are incurred during the application development stage. All other costs including those incurred in the project development and post-implementation stages are expensed as incurred. | ||
Income taxes | ||
The Company provides for income taxes using the asset and liability method. This approach recognizes the amount of taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequence of events recognized in the financial statements and tax returns. Deferred income taxes are adjusted to reflect the effects of changes in tax laws or enacted tax rates. | ||
The Company measured its South African income taxes and deferred income taxes for the years ended June 30, 2014, 2013 and 2012, using the enacted statutory tax rate in South Africa of 28%. On December 20, 2011, there was a change in South African tax law to impose a dividends withholding tax (a tax levied and withheld by a company on distributions to its shareholders) to replace the Secondary Taxation on Companies (a tax levied directly on a company on dividend distributions) ("STC"). The change was effective on April 1, 2012. | ||
As of June 30, 2014, the Company intends to permanently reinvest its non-US undistributed earnings of $356.5 million in those non-US jurisdictions. Accordingly, the Company has not recognized a deferred tax liability related to future distributions of these undistributed earnings. It is not practicable for the Company to estimate the amount of unrecognized deferred tax liability because of the complexities of the calculations involved. The Company will be required to record a tax charge if it is no longer able to permanently reinvest its undistributed earnings. This may result in an increase in the Company's effective tax rate in future periods. | ||
In establishing the appropriate deferred tax asset valuation allowances, the Company assesses the realizability of its deferred tax assets, and based on all available evidence, both positive and negative, determines whether it is more likely than not that the deferred tax assets or a portion thereof will be realized. | ||
Reserves for uncertain tax positions are recognized in the financial statements for positions which are not considered more likely than not of being sustained based on the technical merits of the position on audit by the tax authorities. For positions that meet the more likely than not standard, the measurement of the tax benefit recognized in the financial statements is based upon the largest amount of tax benefit that, in management's judgement, is greater than 50% likely of being realized based on a cumulative probability assessment of the possible outcomes. | ||
The Company's policy is to include interest related to unrecognized tax benefits in interest expense and penalties in selling, general and administration in the consolidated statements of operations. | ||
Stock-based compensation | ||
Stock-based compensation represents the cost related to stock-based awards granted. The Company measures equity-based stock-based compensation cost at the grant date, based on the estimated fair value of the award, and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period. In respect of awards with only service conditions that have a graded vesting schedule, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. The forfeiture rate is estimated using historical trends of the number of awards forfeited prior to vesting. The expense is recorded in the statement of operations and classified based on the recipients' respective functions. | ||
The Company records deferred tax assets for awards that result in deductions on the Company's income tax returns, based on the amount of compensation cost recognized and the Company's statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the Company's income tax return are recorded in additional paid-in capital (if the tax deduction exceeds the deferred tax asset) or in the statement of operations (if the deferred tax asset exceeds the tax deduction and no additional paid-in capital exists from previous awards). | ||
Equity instruments issued to third parties | ||
Equity instruments issued to third parties represents the cost related to equity instruments granted. The Company measures this cost at the grant date, based on the estimated fair value of the award, and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period. The forfeiture rate is estimated based on the Company's expectation of the number of awards that will be forfeited prior to vesting. | ||
The Company records deferred tax assets for equity instrument awards that result in deductions on the Company's income tax returns, based on the amount of equity instrument cost recognized and the Company's statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the Company's income tax return are recorded in the statement of operations. | ||
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 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 and (3) as of June 30, 2013, cash received from healthcare plans which the Company disburses to healthcare service providers once it adjudicates claims. | ||
Settlement obligations comprise (1) amounts that the Company is obligated to disburse to recipient cardholders of social welfare grants, (2) amounts that the Company is obligated to pay to customer employees, payroll-related payees and other payees designated by the customer and (3) as of June 30, 2013, amounts which are due to healthcare service providers after claims have been adjudicated and reconciled, provided that the Company shall have previously received such funds from healthcare plan customers. | ||
The balances at each reporting date may vary widely depending on the timing of the receipts and payments of these assets and obligations. | ||
Recent accounting pronouncements adopted | ||
The following summary of recent accounting pronouncements reflects only the new authoritative accounting guidance issued that is relevant and applicable to the Company. | ||
In February 2013, the FASB issued guidance regarding Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance requires entities to present (either on the face of the statement of operations or in the notes) the effects on the line items of the statement of operations for amounts reclassified out of accumulated other comprehensive income. The guidance is effective for the Company beginning July 1, 2013 and is applied prospectively. The adoption of this guidance did not have a material impact on the Company's financial statements. | ||
Recent accounting pronouncements not yet adopted as of June 30, 2014 | ||
In March 2013, the FASB issued guidance regarding Parent's Accounting for the Cumulative Translation Adjustment Upon Derecognition of Certain Subsidiaries or Groups of Assets Within a Foreign Entity or of an Investment in a Foreign Entity. This guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective for the Company beginning July 1, 2014. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its financial statements on adoption. | ||
In May 2014, the FASB issued guidance regarding Revenue from Contracts with Customers. This guidance requires an entity to recognize revenue when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for the Company beginning July 1, 2017. Early adoption is not permitted. The Company expects that this guidance will have a material impact on its financial statements and is currently evaluating the impact of this guidance on its financial statements on adoption. | ||
Acquisitions
Acquisitions | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Acquisitions [Abstract] | ' | |||||||||
Acquisitions | ' | |||||||||
3. ACQUISITIONS | ||||||||||
The cash paid, net of cash received related to the Company's various acquisitions during the years ended June 30, 2014, 2013 and 2012 are summarized in the table below: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Net1 Mobile Solutions Proprietary Limited ("N1MS") (formerly Pbel) | $ | - | $ | 1,913 | $ | - | ||||
SmartSwitch Botswana (Proprietary) Limited ("SmartSwitch Botswana") | - | 230 | - | |||||||
The Smart Life Insurance Company Limited ("Smart Life") | - | - | 1,673 | |||||||
Prepaid business | - | - | 4,481 | |||||||
Total cash paid, net of cash received | $ | - | $ | 2,143 | $ | 6,154 | ||||
2014 acquisitions | ||||||||||
None. | ||||||||||
2013 acquisitions | ||||||||||
SmartSwitch Botswana (Proprietary) Limited | ||||||||||
On December 7, 2012, the Company acquired 50% of the outstanding and issued ordinary shares in SmartSwitch Botswana, a Botswana private company, for BWP 6.3 million (approximately $0.8 million) in cash. As a result of this transaction, SmartSwitch Botswana is now a wholly-owned subsidiary and is consolidated in the Company's financial statements. SmartSwitch Botswana had previously been recorded as an equity-accounted investment. SmartSwitch Botswana has been allocated to the Company's International transaction processing operating segment. | ||||||||||
N1MS (formerly Pbel) | ||||||||||
On September 14, 2012, the Company acquired all of the outstanding and issued ordinary shares in N1MS, a South African private company, for ZAR 33 million (approximately $3.8 million). ZAR 23 million of the purchase price was paid in cash and the remaining ZAR 10 million was paid by issuing 142,236 shares of the Company's common stock, which are earned by the sellers to the extent that N1MS achieves certain pre-defined financial performance milestones over a three-year measurement period. The 142,236 shares are divided into three equal tranches of 47,412 shares and the sellers earn the shares for each tranche only if the milestones for that particular tranche are achieved. However, the sellers will be entitled to earn all 142,236 shares if the cumulative pre-defined N1MS projected profit over the measurement period is achieved or if the Company decides to abandon its Mobile Virtual Card initiative. During the years ended June 30, 2014 and 2013, N1MS achieved its pre-defined financial performance milestones and the sellers earned 47,412 shares of the Company's common stock in each year. | ||||||||||
The Company had historically engaged the services of N1MS to perform software development services, primarily software utilized on mobile phones and by cash-accepting kiosks. All software developed was the Company's property. Prior to the acquisition, N1MS was jointly owned by the Company's chief executive officer, Dr. Serge Belamant and his son, Mr. Philip Marc Belamant. Dr. Belamant is a non-employee director of N1MS and Mr. Philip Marc Belamant is its chief executive officer. Prior to the acquisition, Mr. Philip Marc Belamant was not employed by the Company. See also Note 25. | ||||||||||
The Company believes that the acquisition of N1MS is important in the execution of its strategy to commercialize and develop its world-wide virtual card patents and to supply secure, leading-edge technological solutions to the global payments market with particular focus on mobile-based payment solutions. N1MS has been allocated to the Company's South African transaction processing operating segment. | ||||||||||
The final purchase price allocation of SmartSwitch Botswana and N1MS acquisitions, translated at the foreign exchange rates applicable on the date of acquisition, is provided in the table below: | ||||||||||
SmartSwitch | ||||||||||
Botswana | N1MS | Total | ||||||||
Cash and cash equivalents | $ | 584 | $ | 660 | $ | 1,244 | ||||
Accounts receivable, net | - | 234 | 234 | |||||||
Inventory | 150 | - | 150 | |||||||
Other current assets | - | - | - | |||||||
Property, plant and equipment, net | 472 | 92 | 564 | |||||||
Intangible assets (Note 9) | - | 1,785 | 1,785 | |||||||
Goodwill (Note 9) | 657 | 1,710 | 2,367 | |||||||
Other payables | (218 | ) | (65 | ) | (283 | ) | ||||
Income taxes payable | - | (93 | ) | (93 | ) | |||||
Deferred tax liabilities | (17 | ) | (494 | ) | (511 | ) | ||||
Fair value of assets and liabilities on acquisition | 1,628 | 3,829 | 5,457 | |||||||
Less: gain on re-measurement of previously held interest in | ||||||||||
SmartSwitch Botswana | (328 | ) | - | (328 | ) | |||||
Less: carrying value of SmartSwitch Botswana, an equity | ||||||||||
accounted investment, at the acquisition date | (486 | ) | - | (486 | ) | |||||
Total purchase price | $ | 814 | $ | 3,829 | $ | 4,643 | ||||
Pro forma results of operations have not been presented because the effect of the SmartSwitch and N1MS acquisitions, individually and in the aggregate, were not material to the Company. During the year ended June 30, 2013, the Company incurred acquisition-related expenditure of $0.1 million related to these acquisitions. Since the closing of the SmartSwitch Botswana acquisition, it has contributed revenue and net income of $0.7 million and $0.02 million, respectively, for the year ended June 30, 2013. Since the closing of the N1MS acquisition, it has contributed revenue and incurred a net loss, after acquired intangible asset amortization, net of taxation, of $1.1 million and $0.5 million, respectively, for the year ended June 30, 2013. | ||||||||||
2012 acquisitions | ||||||||||
Acquisition of prepaid airtime and electricity business | ||||||||||
On October 3, 2011, the Company acquired the South African prepaid airtime and electricity businesses of Eason & Son, Ltd ("Eason"), an Irish private limited company, for approximately $4.5 million in cash. The principal assets acquired comprise prepaid airtime and electricity businesses customer list, accounts receivable books, inventory and a perpetual license to utilize Eason's internally developed transaction-based system software ("EBOS"). | ||||||||||
The business has been integrated with EasyPay and allocated to the Company's South African transaction processing operating segment. | ||||||||||
Smart Life | ||||||||||
On July 1, 2011, the Company acquired Smart Life (formerly known as Saambou Life Assurers Limited), a South African long-term insurance company, for ZAR 13.0 million (approximately $1.8 million) in cash. Prior to its acquisition by the Company, Smart Life had been administered as a ring-fenced life-insurance license by a large South African insurance company, had not written any new insurance business for a number of years and had reinsured all of its risk exposure under its life insurance products. Smart Life has been allocated to the Company's Financial inclusion and applied technologies operating segment. In November 2011, the Company sold 10% of Smart Life to a strategic partner for $0.1 million and recognized a loss on sale of $0.08 million. | ||||||||||
The acquisition of Smart Life provides the Company with an opportunity to offer relevant insurance products directly to its existing customer and employee base in South Africa. | ||||||||||
The final purchase price allocation of the prepaid business and Smart Life acquisitions, translated at the foreign exchange rates applicable on the date of acquisition, are provided in the table below: | ||||||||||
Prepaid | Smart Life | Total | ||||||||
business | ||||||||||
Accounts receivable, net | $ | 1,083 | $ | 152 | $ | 1,235 | ||||
Inventory | 305 | - | 305 | |||||||
Customer relationships | 895 | - | 895 | |||||||
Software and unpatented technology | 2,449 | - | 2,449 | |||||||
Deferred tax liability | (251 | ) | - | (251 | ) | |||||
Cash and cash equivalents | - | 169 | 169 | |||||||
Financial investments (allocated to other long-term assets) | - | 3,059 | 3,059 | |||||||
Reinsurance assets (allocated to other long-term assets) | - | 28,492 | 28,492 | |||||||
Other payables | - | (185 | ) | (185 | ) | |||||
Policy holder liabilities (allocated to other long-term liabilities) | - | (29,845 | ) | (29,845 | ) | |||||
Total purchase price | $ | 4,481 | $ | 1,842 | $ | 6,323 | ||||
During the year ended June 30, 2012, the Company did not incur transaction-related expenditures related to these acquisitions. | ||||||||||
KSNET Inc. ("KSNET") - final settlement in December 2011 | ||||||||||
On October 29, 2010, the Company acquired KSNET for KRW 270 billion (approximately $240 million based on exchange rates on October 29, 2010), and a post-closing working capital adjustment. In December 2011, the Company received $4.9 million, in cash, in final settlement of any and all claims and contractual adjustments between the Company and the former shareholders of KSNET. This amount was applied against the goodwill recognized on the acquisition of KSNET and has reduced the goodwill balance. As required by the Company's South Korean debt agreement, the Company used the settlement proceeds to prepay a portion of its outstanding debt thereunder. The prepayment was made on January 30, 2012. | ||||||||||
PreFunded_Social_Welfare_Grant
Pre-Funded Social Welfare Grants Receivable | 12 Months Ended |
Jun. 30, 2014 | |
Pre-Funded Social Welfare Grants Receivable [Abstract] | ' |
Pre-Funded Social Welfare Grants Receivable | ' |
4. PRE-FUNDED SOCIAL WELFARE GRANTS RECEIVABLE | |
Pre-funded social welfare grants receivable represents amounts pre-funded by the Company to certain merchants participating in the merchant acquiring system. The July 2014 payment service commenced on July 1, 2014, but the Company pre-funded certain merchants participating in the merchant acquiring systems in the last two days of June 2014. The July 2013 payment service commenced on July 1, 2013, but the Company pre-funded certain merchants participating in the merchant acquiring systems in the last two days of June 2013. | |
Accounts_Receivable_Net_And_Fi
Accounts Receivable, Net And Finance Loans Receivable, Net | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Accounts Receivable, Net And Finance Loans Receivable, Net [Abstract] | ' | ||||||
Accounts Receivable, Net And Finance Loans Receivable, Net | ' | ||||||
5. ACCOUNTS RECEIVABLE, net and FINANCE LOANS RECEIVABLE, net | |||||||
Accounts receivable, net | |||||||
2014 | 2013 | ||||||
Accounts receivable, trade, net | $ | 64,885 | $ | 41,225 | |||
Accounts receivable, trade, gross | 66,198 | 45,926 | |||||
Allowance for doubtful accounts receivable, end of year | 1,313 | 4,701 | |||||
Beginning of year | 4,701 | 788 | |||||
Deconsolidation | (32 | ) | - | ||||
Reversed to statement of operations | (1,455 | ) | (93 | ) | |||
Charged to statement of operations | 714 | 4,622 | |||||
Utilized | (2,451 | ) | (5 | ) | |||
Foreign currency adjustment | (164 | ) | (611 | ) | |||
Cash payments to agents in South Korea that are amortized over the contract period | 46,591 | 32,412 | |||||
Other receivables | 36,591 | 28,977 | |||||
Total accounts receivable, net | $ | 148,067 | $ | 102,614 | |||
Receivables from customers renting POS equipment from the Company are included in accounts receivable, trade, and stated net of an allowance for certain amounts that the Company's management has identified may be unrecoverable. Accounts receivable, trade, also includes amounts due from customers from the sale of hardware, software licenses and SIM cards provision of transaction processing services. During the year ended June 30, 2014, 2013 and 2012, respectively, the Company recorded a bad debt expense of $0.6 million, $0.4 million and $0.2 million. | |||||||
Finance loans receivable, net | |||||||
2014 | 2013 | ||||||
Finance loans receivable, gross | $ | 56,207 | $ | 8,350 | |||
Allowance for doubtful finance loans receivable, end of year | 3,083 | - | |||||
Beginning of year | - | - | |||||
Charged to statement of operations | 3,652 | - | |||||
Utilized | (513 | ) | - | ||||
Foreign currency adjustment | (56 | ) | - | ||||
Total finance loans receivable, net | $ | 53,124 | $ | 8,350 | |||
The Company updated its accounting policy for the allowance for doubtful finance loans receivable during the year ended June 30, 2014, as a result of the increase in its UEPS-based lending book which is included in finance loans receivable in its consolidated balance sheet. The Company does not believe that an allowance for doubtful finance loans receivable is required for finance loans receivable as of June 30, 2013, because this was an established book and has been recovered. The Company did not expense any unrecoverable finance loans receivable during the year ended June 30, 2014, because these loans were written off directly against the allowance for doubtful finance loans receivable. The Company recorded an unrecoverable finance loans receivable expense of $0.2 million during each of the years ended June 30, 2013 and 2012, respectively. | |||||||
Inventory
Inventory | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Inventory [Abstract] | ' | ||||
Inventory | ' | ||||
6. INVENTORY | |||||
The Company's inventory as of June 30, 2014 and 2013, is presented in the table below: | |||||
2014 | 2013 | ||||
Finished goods | $ | 10,785 | $ | 12,222 | |
$ | 10,785 | $ | 12,222 | ||
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Fair Value Of Financial Instruments [Abstract] | ' | ||||||||
Fair Value Of Financial Instruments | ' | ||||||||
7. FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||
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 seeks to reduce its exposure to currencies other than the South African rand through a policy of matching, to the extent possible, assets and liabilities denominated in those currencies. In addition, the Company uses financial instruments in order to economically hedge its exposure to exchange rate and interest rate fluctuations arising from its operations. The Company is also exposed to equity price and liquidity risks as well as credit risks. | |||||||||
Currency exchange risk | |||||||||
The Company is subject to currency exchange risk because it purchases inventories that it is required to settle in other currencies, primarily the euro and US 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, on the one hand, and the US dollar and the euro, on the other hand. | |||||||||
Translation risk | |||||||||
Translation risk relates to the risk that the Company's results of operations will vary significantly as the US dollar is its reporting currency, but it earns most of its revenues and incurs most of its expenses in ZAR. The US dollar to ZAR exchange rate 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 leasing 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 investment in cash equivalents 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 evaluation 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 policy of entering into such transactions only with South African and European financial institutions that have a credit rating of BBB or better, as determined by credit rating agencies such as Standard & Poor's, Moody's and Fitch Ratings. | |||||||||
UEPS-based microlending credit risk | |||||||||
The Company is exposed to credit risk in its UEPS-based microlending activities, which provides unsecured short-term loans to qualifying customers. The Company manages this risk by performing an affordability test for each prospective customer and assigns 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 fluctuate for a variety of reasons, consequently, the amount 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 incur 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 price, or at all. | |||||||||
Financial instruments | |||||||||
Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including the Company's own credit risk. | |||||||||
Fair value measurements and inputs are categorized into a fair value hierarchy which prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. | |||||||||
These levels are: | |||||||||
Level 1 – inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. | |||||||||
Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||
Level 3 – inputs are generally unobservable and 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. | |||||||||
The following section describes the valuation methodologies the Company uses to measure financial assets and liabilities at fair value. | |||||||||
Investments in common stock | |||||||||
In general, and where applicable, the Company uses quoted prices 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 are 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 Finbond Group Limited ("Finbond") | |||||||||
The Company's Level 3 asset represents an investment of 156,788,712 shares of common stock of Finbond, which are exchange-traded equity securities. Finbond's shares are traded on the Johannesburg Stock Exchange ("JSE") and the Company has designated such shares as available for sale investments. The Company has concluded that the market for Finbond shares is not active and consequently has employed alternative valuation techniques in order to determine the fair value of such stock. Finbond issues financial products and services under a mutual banking licence and also has a microlending offering. In determining the fair value of Finbond, the Company has considered amongst other things Finbond's historical financial information (including its most recent public accounts), press releases issued by Finbond and its published net asset value. The Company believes that the best indicator of fair value of Finbond is its published net asset value and has used this value to determine the fair value. | |||||||||
The fair value of these securities as of June 30, 2014, represented approximately 1% of the Company's total assets, including these securities. The Company expects to hold these securities for an extended period of time and it is not concerned with short-term equity price volatility with respect to these securities provided that the underlying business, economic and management characteristics of the company remain sound. | |||||||||
In March 2012, Finbond completed a rights issue and the Company acquired an additional 72,156,187 shares for approximately $1 million. The Company's ownership interest in Finbond as of June 30, 2014, is approximately 26%. The Company has no rights to participate in the financial, operating, or governance decisions made by Finbond. The Company also has no participation on Finbond's board of directors whether through contractual agreement or otherwise. Consequently, the Company has concluded that it does not have significant influence over Finbond and therefore equity accounting is not appropriate. | |||||||||
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 counterparties that have long-term credit ratings of BBB 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 measurement under level 1 or 3 of the fair value hierarchy. | |||||||||
The Company's outstanding foreign exchange contracts are as follows: | |||||||||
As of June 30, 2014 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
EUR | 182,272.50 | ZAR | 15.2077 | ZAR | 14.5803 | 21-Jul-14 | |||
EUR | 182,272.50 | ZAR | 15.3488 | ZAR | 14.5803 | 21-Jul-14 | |||
EUR | 180,022.50 | ZAR | 15.4228 | ZAR | 14.6542 | 20-Aug-14 | |||
EUR | 180,022.50 | ZAR | 15.2819 | ZAR | 14.6542 | 20-Aug-14 | |||
EUR | 180,022.50 | ZAR | 15.3623 | ZAR | 14.7367 | 22-Sep-14 | |||
EUR | 180,022.50 | ZAR | 15.5041 | ZAR | 14.7367 | 22-Sep-14 | |||
EUR | 181,570.50 | ZAR | 15.5739 | ZAR | 14.8119 | 20-Oct-14 | |||
EUR | 181,570.50 | ZAR | 15.4316 | ZAR | 14.8119 | 20-Oct-14 | |||
EUR | 180,022.50 | ZAR | 15.6552 | ZAR | 14.8982 | 20-Nov-14 | |||
EUR | 180,022.50 | ZAR | 15.5136 | ZAR | 14.8982 | 20-Nov-14 | |||
EUR | 180,022.50 | ZAR | 15.597 | ZAR | 14.9874 | 22-Dec-14 | |||
EUR | 180,022.50 | ZAR | 15.7391 | ZAR | 14.9874 | 22-Dec-14 | |||
EUR | 174,424.50 | ZAR | 15.8119 | ZAR | 15.0671 | 20-Jan-15 | |||
EUR | 174,424.50 | ZAR | 15.6729 | ZAR | 15.0671 | 20-Jan-15 | |||
As of June 30, 2013 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
USD | 4,000,000 | ZAR | 9.06 | ZAR | 10.1397 | 30-Sep-13 | |||
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2014, according to the fair value hierarchy: | |||||||||
Quoted | |||||||||
Price in | |||||||||
Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Assets | Inputs | Inputs | |||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||
Assets | |||||||||
Related to insurance business (included in | |||||||||
other long-term assets): | |||||||||
Cash and cash equivalents | $ | 1,800 | $ | - | $ | - | $ | 1,800 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 8,068 | 8,068 | |||||
Other | - | 47 | - | 47 | |||||
Total assets at fair value | $ | 1,800 | $ | 47 | $ | 8,068 | $ | 9,915 | |
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 164 | $ | - | $ | 164 | |
Total liabilities at fair value | $ | - | $ | 164 | $ | - | $ | 164 | |
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2013, according to the fair value hierarchy: | |||||||||
Quoted | |||||||||
Price in | |||||||||
Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Assets | Inputs | Inputs | |||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||
Assets | |||||||||
Related to insurance business (included in | |||||||||
other long-term assets): | |||||||||
Cash and cash equivalents | $ | 1,833 | $ | - | $ | - | $ | 1,833 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 8,303 | 8,303 | |||||
Other | - | 147 | - | 147 | |||||
Total assets at fair value | $ | 1,833 | $ | 147 | $ | 8,303 | $ | 10,283 | |
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 436 | $ | - | $ | 436 | |
Total liabilities at fair value | $ | - | $ | 436 | $ | - | $ | 436 | |
Changes in the Company's investment in Finbond (Level 3 that are measured at fair value on a recurring basis) were insignificant during the years ended June 30, 2014 and 2013, respectively. There have been no transfers in or out of Level 3 during the years ended June 30, 2014 and 2013, respectively. | |||||||||
Trade, finance loans and other receivables | |||||||||
Trade, finance loans and other receivables originated by the Company are stated at cost less allowance for doubtful accounts receivable. The fair value of trade, finance loans and other receivables approximate their carrying value due to their short-term nature. | |||||||||
Trade and other payables | |||||||||
The fair values of trade and other payables approximates their carrying amounts, due to their short-term nature. | |||||||||
Assets and liabilities measured at fair value on a nonrecurring basis | |||||||||
The Company measures its assets at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. The Company has no liabilities that are measured at fair value on a nonrecurring basis. The Company reviews the carrying values of its assets when events and circumstances warrant and considers all available evidence in evaluating when declines in fair value are other-than-temporary. The fair values of the Company's assets are determined using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. An impairment charge is recorded when the cost of the assets exceeds its fair value and the excess is determined to be other-than-temporary. The Company has not recorded any impairment charges during the reporting periods presented herein. | |||||||||
Property_Plant_And_Equipment_N
Property, Plant And Equipment, Net | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Property, Plant And Equipment, Net [Abstract] | ' | ||||
Property, Plant And Equipment, Net | ' | ||||
8. PROPERTY, PLANT AND EQUIPMENT, net | |||||
Summarized below is the cost, accumulated depreciation and carrying amount of property, plant and equipment as of June 30, 2014 and 2013: | |||||
2014 | 2013 | ||||
Cost: | |||||
Land | $ | 967 | $ | 858 | |
Building and structures | 530 | 471 | |||
Computer equipment | 110,393 | 101,536 | |||
Furniture and office equipment | 6,686 | 7,864 | |||
Motor vehicles | 20,575 | 22,127 | |||
Plant and equipment | 68 | 253 | |||
139,219 | 133,109 | ||||
Accumulated depreciation: | |||||
Land | - | - | |||
Building and structures | 128 | 92 | |||
Computer equipment | 73,908 | 69,573 | |||
Furniture and office equipment | 4,799 | 5,627 | |||
Motor vehicles | 12,519 | 9,263 | |||
Plant and equipment | 68 | 253 | |||
91,422 | 84,808 | ||||
Carrying amount: | |||||
Land | 967 | 858 | |||
Building and structures | 402 | 379 | |||
Computer equipment | 36,485 | 31,963 | |||
Furniture and office equipment | 1,887 | 2,237 | |||
Motor vehicles | 8,056 | 12,864 | |||
Plant and equipment | - | - | |||
$ | 47,797 | $ | 48,301 | ||
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets, Net | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Goodwill And Intangible Assets, Net [Abstract] | ' | ||||||||||||||
Goodwill And Intangible Assets, Net | ' | ||||||||||||||
9. GOODWILL AND INTANGIBLE ASSETS, net | |||||||||||||||
Goodwill | |||||||||||||||
Summarized below is the movement in the carrying value of goodwill for the years ended June 30, 2014, 2013 and 2012: | |||||||||||||||
Gross | Accumulated | Carrying | |||||||||||||
value | impairment | value | |||||||||||||
Balance as of July 1, 2011 | $ | 258,084 | $ | (48,514 | ) | $ | 209,570 | ||||||||
Reduction in goodwill: KSNET net settlement (Note 3) | (4,239 | ) | - | (4,239 | ) | ||||||||||
Foreign currency adjustment (1) | (28,957 | ) | 6,363 | (22,594 | ) | ||||||||||
Balance as of June 30, 2012 | 224,888 | (42,151 | ) | 182,737 | |||||||||||
Acquisition of N1MS (Note 3) | 1,710 | - | 1,710 | ||||||||||||
Acquisition of SmartSwitch Botswana (Note 3) | 657 | - | 657 | ||||||||||||
Foreign currency adjustment (1) | (8,697 | ) | (601 | ) | (9,298 | ) | |||||||||
Balance as of June 30, 2013 | 218,558 | (42,752 | ) | 175,806 | |||||||||||
Loss on liquidation of Net1 Universal Electronic | |||||||||||||||
Technologies (Austria) GmbH and associated entities ("Net1 | |||||||||||||||
UTA") (Note 19) | (44,445 | ) | 44,445 | - | |||||||||||
Foreign currency adjustment (1) | 12,463 | (1,693 | ) | 10,770 | |||||||||||
Balance as of June 30, 2014 | $ | 186,576 | $ | - | $ | 186,576 | |||||||||
(1) – the foreign currency adjustment represents the effects of the fluctuations between the South African rand and the South Korean won, and the US dollar on the carrying value. | |||||||||||||||
Goodwill associated with the acquisition of N1MS and SmartSwitch Botswana represents the excess of cost over the fair value of acquired net assets. The N1MS and SmartSwitch Botswana goodwill is not deductible for tax purposes. See Note 3 for the allocation of the purchase price to the fair value of acquired net assets. N1MS has been allocated to the Company's South African transaction processing operating segment and SmartSwitch Botswana to the International transaction processing operating segment. | |||||||||||||||
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 at June 30 of each year. The results of our impairment tests during the year ended June 30, 2014 and 2013, indicated that the fair value of the Company's reporting units exceeded their carrying values and therefore the Company's reporting units were not at risk of potential impairment. | |||||||||||||||
The Company changed its reportable segments during June 2014 (refer to Note 23). Goodwill has been allocated to the Company's reportable segments as follows: | |||||||||||||||
2014 | 2013 | ||||||||||||||
South African transaction processing | $ | 28,517 | $ | 30,525 | |||||||||||
International transaction processing | 128,427 | 113,972 | |||||||||||||
Financial inclusion and applied technologies | 29,632 | 31,309 | |||||||||||||
Total | $ | 186,576 | $ | 175,806 | |||||||||||
Intangible assets, net | |||||||||||||||
The Company assesses the carrying value of intangible assets for impairment whenever events occur or circumstances change indicating that the carrying amount of the intangible asset may not be recoverable. No intangible assets have been impaired during the years ended June 30, 2014, 2013 and 2012, respectively. | |||||||||||||||
Summarized below is the carrying value and accumulated amortization of intangible assets as of June 30, 2014 and 2013: | |||||||||||||||
As of June 30, 2014 | As of June 30, 2013 | ||||||||||||||
Gross | Net | Gross | Net | ||||||||||||
carrying | Accumulated | carrying | carrying | Accumulated | carrying | ||||||||||
value | amortization | value | value | amortization | value | ||||||||||
Finite-lived intangible assets: | |||||||||||||||
Customer relationships | $ | 98,676 | $ | (41,273 | ) | $ | 57,403 | $ | 90,469 | $ | (29,818 | ) | $ | 60,651 | |
Software and unpatented | |||||||||||||||
technology | 33,604 | (26,207 | ) | 7,397 | 34,951 | (22,151 | ) | 12,800 | |||||||
FTS patent | 3,619 | (3,619 | ) | - | 3,873 | (3,873 | ) | - | |||||||
Exclusive licenses | 4,506 | (4,506 | ) | - | 4,506 | (4,506 | ) | - | |||||||
Trademarks | 6,890 | (3,176 | ) | 3,714 | 6,611 | (2,805 | ) | 3,806 | |||||||
Customer database | - | - | - | 614 | (614 | ) | - | ||||||||
Total finite-lived intangible assets | $ | 147,295 | $ | (78,781 | ) | $ | 68,514 | $ | 141,024 | $ | (63,767 | ) | $ | 77,257 | |
Amortization expense charged for the years to June 30, 2014, 2013 and 2012 was $16.6 million, $18.2 million, and $19.4 million, respectively. | |||||||||||||||
Future estimated annual amortization expense for the next five fiscal years, assuming exchange rates prevailing on June 30, 2014, 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. | |||||||||||||||
2015 | $ | 15,831 | |||||||||||||
2016 | 11,838 | ||||||||||||||
2017 | 9,421 | ||||||||||||||
2018 | 9,421 | ||||||||||||||
2019 | 9,074 | ||||||||||||||
Thereafter | $ | 12,624 | |||||||||||||
Reinsurance_Assets_And_Policy_
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ' | ||||||
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts | ' | ||||||
10. REINSURANCE ASSETS AND POLICY HOLDER LIABILITIES UNDER INSURANCE AND INVESTMENT CONTRACTS | |||||||
Reinsurance assets and policy holder liabilities under insurance contracts | |||||||
Summarized below is the movement in reinsurance assets and policy holder liabilities under insurance contracts during the years ended June 30, 2014 and 2013: | |||||||
Reinsurance | Insurance | ||||||
assets (1) | contracts (2) | ||||||
Balances acquired on July 1, 2012 | $ | 23,595 | $ | (23,701 | ) | ||
Claims and policyholders' benefits under insurance contracts | (211 | ) | 146 | ||||
Foreign currency adjustment (3) | (3,827 | ) | 3,844 | ||||
Balance as of June 30, 2013 | 19,557 | (19,711 | ) | ||||
Claims and policyholders' benefits under insurance contracts | 2,790 | (3,063 | ) | ||||
Foreign currency adjustment (3) | (1,285 | ) | 1,296 | ||||
Balance as of June 30, 2014 | $ | 21,062 | $ | (21,478 | ) | ||
(1) Included in other long-term assets; | |||||||
(2) Included in other long-term liabilities; | |||||||
(3) The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US 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 best estimates 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 future mortality and morbidity (an appropriate base table of standard mortality is chosen depending on the type of contract and class of business), withdrawals (based on recent withdrawal investigations and expected future trends), investment returns (based on government treasury rates adjusted by an applicable margin), expense inflation (based on a 10 year real return on CPI-linked government bonds from the risk-free rate and adding an allowance for salary inflation and book shrinkage of 1% per annum) and claim reporting delays (based on average industry experience). | |||||||
Assets and policy holder liabilities under investment contracts | |||||||
Summarized below is the movement in assets and policy holder liabilities under investment contracts during the years ended June 30, 2014 and 2013: | |||||||
Investment | |||||||
Assets (1) | contracts (2) | ||||||
Balances acquired on July 1, 2012 | $ | 1,109 | $ | (1,109 | ) | ||
Foreign currency adjustment (3) | (156 | ) | 156 | ||||
Balance as of June 30, 2013 | 953 | (953 | ) | ||||
Maturity claims under investment contracts | (202 | ) | 202 | ||||
Foreign currency adjustment (3) | (63 | ) | 63 | ||||
Balance as of June 30, 2014 | $ | 688 | $ | (688 | ) | ||
(1) Included in other long-term assets; | |||||||
(2) Included in other long-term liabilities; | |||||||
(3) The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar. | |||||||
The Company does not offer any investment products with guarantees related to capital or returns. | |||||||
Other_Payables
Other Payables | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Other Payables [Abstract] | ' | ||||
Other Payables | ' | ||||
11. OTHER PAYABLES | |||||
Summarized below is the breakdown of other payables as of June 30, 2014 and 2013: | |||||
2014 | 2013 | ||||
Participating merchants settlement obligation | $ | 2,118 | $ | 2,005 | |
Payroll-related payables | 991 | 1,611 | |||
Accruals | 10,704 | 10,522 | |||
Value-added tax payable | 3,477 | 2,560 | |||
Other | 7,027 | 7,009 | |||
Provisions | 17,940 | 10,101 | |||
$ | 42,257 | $ | 33,808 | ||
ShortTerm_Facilities
Short-Term Facilities | 12 Months Ended |
Jun. 30, 2014 | |
Short-Term Facilities [Abstract] | ' |
Short-Term Facilities | ' |
12. SHORT-TERM FACILITIES | |
South Africa | |
The Company's short-term South African credit facility with Nedbank Limited comprises an overdraft facility of up to ZAR 250 million and indirect and derivative facilities of up to ZAR 150 million, which include letters of guarantee, letters of credit and forward exchange contracts. As of June 30, 2014, the interest rate on the overdraft facility was 7.85%. On July 18, 2014, the interest rate on the overdraft facility was increased to 8.10% due to an increase in the South Africa repurchase rate by 0.25%. The Company has ceded its investment in Cash Paymaster Services Proprietary Limited ("CPS"), a wholly owned South African subsidiary, as security for its repayment obligations under the facility. A commitment fee of 0.35% per annum is payable on the monthly unutilized amount of the overdraft portion of the short-term facility. The Company is required to comply with customary non-financial covenants, including, without limitation, covenants that restrict its ability to dispose of or encumber its assets, incur additional indebtedness or engage in certain business combinations. As of June 30, 2014, the Company had not utilized any of its ZAR 250.0 million ($23.6 million, translated at exchange rates applicable as of June 30, 2014) overdraft facility. The Company had utilized approximately ZAR 139.0 million ($13.1 million, translated at exchange rates applicable as of June 30, 2014) of its facility to obtain foreign exchange contracts from the bank and to enable the bank to issue guarantees, including stand-by letters of credit, in order for the Company to honor its obligations to third parties requiring such guarantees (refer to Note 24). As of June 30, 2013, the Company had utilized none of these facilities. | |
South Korea | |
The Company obtained a KRW 10 billion short-term overdraft facility from Hana Bank, a South Korean bank, in January 2014. As of June 30, 2014, the interest rate on the overdraft facility was 4.98%. The Company has ceded the warehouse it owns in South Korea as security for its repayment obligations under the facility. As of June 30, 2014, the Company had not utilized any of its KRW 10.0 billion ($9.9 million, translated at exchange rates applicable as of June 30, 2014) overdraft facility. The facility expires in January 2015. | |
LongTerm_Borrowings
Long-Term Borrowings | 12 Months Ended |
Jun. 30, 2014 | |
Long-Term Borrowings [Abstract] | ' |
Long-Term Borrowings | ' |
13. LONG-TERM BORROWINGS | |
In October 2013, the Company refinanced its long-term South Korean credit facility and signed a new five-year senior secured facilities agreement (the "Facilities Agreement") with a consortium of South Korean banks. The Facilities Agreement provides for three separate facilities to the Company's wholly owned subsidiary, Net1 Applied Technologies Korea ("Net1 Korea"): a Facility A loan of up to KRW 60.0 billion ($59.2 million), a Facility B loan of up to KRW 15 billion ($14.8 million) and a Facility C revolving credit facility of up to KRW 10.0 billion ($9.9 million) (all facilities denominated in KRW and translated at exchange rates applicable as of June 30, 2014). | |
The Facility A and B loans were fully drawn on October 29, 2013, and used to repay KRW 75.0 billion ($70.6 million) of the KRW 92.4 billion ($87.0 million) loan outstanding under the Company's refinanced South Korean credit facility. The remaining outstanding KRW 17.4 billion ($16.4 million) balance of that facility was paid from cash on hand on October 29, 2013. In addition, the Company drew KRW 1.1 billion ($1.0 million) of the revolving credit facility on October 29, 2013, to pay fees and expenses related to the Facilities Agreement and drew approximately KRW 2.2 billion ($2.1 million) during the last six months of the year ended June 30, 2014, to pay interest due under the Facilities Agreement. The carrying value as of June 30, 2014, was $77.2 million. As of June 30, 2014, the carrying amount of the long-term borrowings approximated its fair value. | |
Interest on the loans and revolving credit facility is payable quarterly and is based on the South Korean CD rate in effect from time to time plus a margin of 3.10% for the Facility A loan and Facility C revolving credit facility; and a margin of 2.90% for the Facility B loan. The CD rate was 2.65% on June 30, 2014 and therefore the interest rate in effect as of June 30, 2014, for the Facility A loan and Facility C revolving credit facility was 5.75% and for the Facility B loan was 5.55%, respectively. A commitment fee of 0.3% is payable on any un-drawn and un-cancelled amount of the revolving credit facility. | |
The Company paid facilities fees of approximately KRW 0.9 billion ($0.9 million) on October 29, 2013, and amortized approximately $0.3 million of these fees during the year ended June 30, 2014. The Company has expensed the remaining prepaid facility fees related to the Company's refinanced South Korean credit facility of approximately $0.4 million during the year ended June 30, 2014. Total interest expense related to the new and refinanced facilities during the year ended June 30, 2014, 2013 and 2012, was $4.8 million, $7.1 million and $8.8 million, respectively. | |
The Facility A loan is repayable in three scheduled annual installments of KRW 10 billion in April 2016, 2017 and 2018, with a final installment of KRW 30 billion due at the maturity date (October 29, 2018). The Facility B loan is repayable in full on October 29, 2014. The Facility C revolving credit facility is repayable in full on the maturity date. Prepayment of the revolving credit facility may be withdrawn at any time up to three months before the maturity date. | |
The loans under the Facilities Agreement are secured by a pledge by Net1 Korea of its entire equity interest in KSNET and a pledge by the immediate parent of Net1 Korea (also one of the Company's subsidiaries) of its entire equity interest in Net1 Korea. The Facilities Agreement contains customary covenants that require Net1 Korea to maintain agreed leverage and debt service coverage ratios and restricts Net1 Korea's ability to make certain distributions with respect to its capital stock, prepay other debt, encumber its assets, incur additional indebtedness, or engage in certain business combinations. The loans under the Facilities Agreement are without recourse to, and the covenants and other agreements contained therein do not apply to, the Company or any of the Company's subsidiaries (other than Net1 Korea). | |
Common_Stock
Common Stock | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Common Stock [Abstract] | ' | |||
Common Stock | ' | |||
14. COMMON STOCK | ||||
Common stock | ||||
Holders of shares of Net1's common stock are entitled to receive dividends and other distributions when declared by Net1's board of directors out of legally available funds. Payment of dividends and distributions is subject to certain restrictions under the Florida Business Corporation Act, including the requirement that after making any distribution Net1 must be able to meet its debts as they become due in the usual course of its business. | ||||
Upon voluntary or involuntary liquidation, dissolution or winding up of Net1, holders of common stock share ratably in the assets remaining after payments to creditors and provision for the preference of any preferred stock according to its terms. There are no pre-emptive or other subscription rights, conversion rights or redemption or scheduled installment payment provisions relating to shares of common stock. All of the outstanding shares of common stock are fully paid and non-assessable. | ||||
Each holder of common stock is entitled to one vote per share for the election of directors and for all other matters to be voted on by shareholders. Holders of common stock may not cumulate their votes in the election of directors, and are entitled to share equally and ratably in the dividends that may be declared by the board of directors, but only after payment of dividends required to be paid on outstanding shares of preferred stock according to its terms. The shares of Net1 common stock are not subject to redemption. | ||||
The Company's number of shares, net of treasury, presented in the consolidated balance sheets and consolidated statement of changes in equity includes participating non-vested equity shares (specifically contingently returnable shares) as described in Note 18—Amended and Restated Stock Incentive Plan—Restricted Stock—General Terms of Awards. The following table presents reconciliation between the number of shares, net of treasury, presented in the consolidated statement of changes in equity and the number of shares, net of treasury, excluding non-vested equity shares that have not vested during the years ended June 30, 2014, 2013 and 2012: | ||||
2014 | 2013 | 2012 | ||
Number of shares, net of treasury: | ||||
Statement of changes in equity | 47,819,299 | 45,592,550 | 45,548,902 | |
Less: Non-vested equity shares that have not vested as of end of | ||||
year (Note 18) | 385,778 | 405,226 | 646,617 | |
Number of shares, net of treasury excluding non-vested | ||||
equity shares that have not vested | 47,433,521 | 45,187,324 | 44,902,285 | |
Common stock repurchases | ||||
The Company's Board of Directors has authorized the repurchase of up to $100 million of common stock. The authorization does not have an expiration date. | ||||
The share repurchase authorization will be used at management's discretion, subject to limitations imposed by SEC Rule 10b-18 and other legal requirements and subject to price and other internal limitations established by the Board. Repurchases will be funded from the Company's available cash. Share repurchases may be made through open market purchases, privately negotiated transactions, or both. There can be no assurance that the Company will purchase any shares or any particular number of shares. | ||||
The authorization may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, liquidity and other factors that management deems appropriate. During the year ended June 30, 2012, the Company repurchased 180,656 shares for approximately $1.1 million. The Company did not repurchase any of its shares during the years ended June 30, 2014 and 2013, under this authorization. However, during the year ended June 30, 2014, the Company repurchased 2,428,122 shares for approximately $24.9 million as described below under "—December 2013 Black Economic Empowerment transactions—Salient terms of the BEE Relationship Agreements". | ||||
December 2013 Black Economic Empowerment transactions | ||||
On December 10, 2013, the Company entered into definitive agreements relating to two Black Economic Empowerment ("BEE") transactions. On April 16, 2014, the Company implemented these transactions and issued 4,400,000 shares of its common stock to its BEE partners after all the agreed conditions had been satisfied. On June 6, 2014, the Company repurchased approximately 2.4 million of these shares of common stock and the BEE partners used the proceeds from the repurchase to settle their obligations due to the South African subsidiary of the Company, as described below. | ||||
Salient terms of the BEE Relationship Agreements | ||||
Pursuant to Relationship Agreements between the Company and its BEE partners, the Company sold an aggregate of 4,400,000 shares of its common stock ("BEE shares"), which are contractually restricted as to resale as described below, for a purchase price of ZAR 60.00 per share. This price represented 75% of the closing price of the Company's common stock on the JSE on December 6, 2013, the date the Company completed final negotiation of the terms of these BEE transactions. | ||||
The Relationship Agreements provided for the entire purchase price for the BEE shares to be financed through a five-year loan to be extended to each of the BEE partners by a South African subsidiary of the Company. The obligations of the BEE partners under the loans were several, and not joint. Each of the BEE partners granted the lender a security interest in all the BEE shares purchased by such BEE partner to secure the repayment of its loan. The principal amount of the loans made by the subsidiary was contributed by Net1 to the equity capital of the subsidiary. As a result of the making of the loans, the net cash position of the Company after the sale of the BEE shares remained unchanged. | ||||
The loans bore interest at a rate equal to the Johannesburg Interbank Rate plus 300 basis points. Interest on the loans was payable semi-annually in arrears on January 1 and July 1 of each year. 10% of the outstanding principal amount of the loans was payable on each of the first and second anniversaries of the date of issuance of the BEE shares, 15% of the outstanding principal amount of the loans was payable on each of the third and fourth anniversaries of the date of issuance of the BEE shares and the remaining outstanding principal amount of the loans was payable on the fifth anniversary of the date of issuance of the BEE shares. Further, the entire outstanding principal amount of the loans was payable if the price of the Company's common stock on the JSE equals or exceeds ZAR 120.00 per share at any time during term of the loans. The loans to the BEE partners did not provide that they were recourse only to the BEE shares. Nevertheless, the Company expected that the sole source of repayment of the loans will be proceeds from the sale of its shares by the BEE partners from time to time, in open market or in privately negotiated transactions. | ||||
Upon the occurrence of certain "trigger events" with respect to a BEE partner, the BEE shares held by that BEE partner may be repurchased by the Company or one of its designees. These trigger events include the following: | ||||
failure by the BEE partner to pay any amount due on its loan (including interest) to the lender (in this case, the Company may repurchase only that number of shares which would raise sufficient funds to settle any amount due and unpaid); | ||||
any other breach by the BEE partner (or in certain circumstances its shareholders) of any provision of the Relationship Agreement, including without limitation, its failure to maintain its BEE status; | ||||
the Company's common stock trades at or below ZAR 60.00 on the JSE or at or below the equivalent trading price on Nasdaq; | ||||
the occurrence of certain insolvency events or liquidation proceedings affecting the BEE partner; or | ||||
the BEE partner fails to satisfy any judgment or arbitration award granted or made against it within 7 days. | ||||
If the trigger event involved a failure by a BEE partner to pay any amount due on its loan, then the repurchase price is the volume-weighted average price of the Company's common stock on the Nasdaq for the period of 30 trading days prior to the trigger event ("30-day VWAP"). In the case of other trigger events, the repurchase price is the lower of the 30-day VWAP or ZAR 60.00 per share. | ||||
The Company's share price exceeded ZAR 120.00 on June 4, 2014 and all outstanding amounts then became due and payable. The BEE partners were unable to pay all outstanding amounts due on June 5, 2014, and accordingly a trigger event occurred. The Company purchased a total of 2,428,122 shares of its common stock, at the determined VWAP of ZAR109.98, from the BEE partners. The BEE partners used the proceeds from the sale of these shares in order to settle all outstanding amounts due to the South African subsidiary of the Company. | ||||
The BEE shares are contractually restricted as to resale for a period of five years from the date of issuance, with the exception of periodic sales which would have been made to fund the repayment of principal and interest on the loans if they had not been repaid in full in June 2014. In addition, the Company may call the BEE shares then owned by the BEE partners, either in exchange for a minority interest in CPS or for a cash payment equal to the 30-day VWAP. Further, after the fifth anniversary of the date of issuance of the BEE shares, the Company will have a right of first refusal on the shares owned by the BEE partners. | ||||
Acquisition of KSNET non-controlling interests | ||||
During the year ended June 30, 2014, the Company acquired all of the issued share capital of KSNET, Inc. that it did not previously own for approximately $2.0 million in cash. The Company intends to realize certain South Korean tax efficiencies in the future and is currently discussing the feasibility with its South Korean tax advisors. The transaction was accounted for as an equity transaction with a non-controlling interest and accordingly, no gain or loss was recognized in the Company's consolidated statement of operations. The carrying amount of the non-controlling interest was adjusted to reflect the change in ownership interest in KSNET. The difference between the fair value of the consideration paid and the amount by which the non-controlling interest was adjusted, of $1.5 million, was recognized in total Net1 equity. | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Accumulated Other Comprehensive (Loss) Income [Abstract] | ' | |||||||||
Accumulated Other Comprehensive (Loss) Income | ' | |||||||||
15. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||
The table below presents the change in accumulated other comprehensive (loss) income per component during years ended June 30, 2014, 2013 and 2012: | ||||||||||
Accumulated | ||||||||||
Net | ||||||||||
unrealized | ||||||||||
Accumulated | income (loss) | |||||||||
Foreign | on asset | |||||||||
currency | available for | |||||||||
translation | sale, net of | |||||||||
reserve | tax | Total | ||||||||
'000 | '000 | '000 | ||||||||
Balance as of July 1, 2011 | $ | (31,647 | ) | $ | (2,132 | ) | $ | (33,779 | ) | |
Movement in foreign currency translation reserve | (43,490 | ) | - | (43,490 | ) | |||||
Unrealized loss on asset available for sale, net of tax of $602 . | - | 1,547 | 1,547 | |||||||
Balance as of June 30, 2012 | (75,137 | ) | (585 | ) | (75,722 | ) | ||||
Movement in foreign currency translation reserve | (26,051 | ) | - | (26,051 | ) | |||||
Unrealized loss on asset available for sale, net of tax of $356 . | - | 915 | 915 | |||||||
Balance as of June 30, 2013 | (101,188 | ) | 330 | (100,858 | ) | |||||
Movement in foreign currency translation reserve | 13,552 | - | 13,552 | |||||||
Release of foreign currency translation reserve related to sale/ | ||||||||||
liquidation of businesses | 4,277 | - | 4,277 | |||||||
Unrealized loss on asset available for sale, net of tax of $112 . | - | 288 | 288 | |||||||
Balance as of June 30, 2014 | $ | (83,359 | ) | $ | 618 | $ | (82,741 | ) | ||
The Company released a net loss of $4.3 million from its foreign currency translation reserve to selling, general and administration expense on its consolidated statement of operations during the year ended June 30, 2014, as a result of the sale and liquidation of certain subsidiaries (See also Note 19). There were no other reclassifications from accumulated other comprehensive loss to comprehensive (loss) income during the year ended June 30, 2014. There were no reclassifications from accumulated other comprehensive loss to comprehensive (loss) income during the year ended June 30, 2013. | ||||||||||
Revenue
Revenue | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Revenue [Abstract] | ' | ||||||
Revenue | ' | ||||||
16. REVENUE | |||||||
2014 | 2013 | 2012 | |||||
Services rendered – comprising mainly fees and commissions | $ | 518,297 | $ | 430,268 | $ | 362,679 | |
Loan-based fees received | 33,560 | 6,613 | 8,433 | ||||
Sale of goods – comprising mainly hardware and software sales | 29,799 | 15,266 | 19,152 | ||||
$ | 581,656 | $ | 452,147 | $ | 390,264 | ||
Services rendered – comprising mainly fees and commissions for the year ended June 30, 2014, includes a once-off receipt of $26.6 million related to the recovery of additional implementation costs incurred during the beneficiary re-registration process during the years ended June 30, 2013 and 2012. During the years ended June 30, 2014, 2013 and 2012, the Company did not recognize any revenue using the percentage of completion method. | |||||||
Equity_Instruments_Issued_Purs
Equity Instruments Issued Pursuant To BEE Transactions | 12 Months Ended |
Jun. 30, 2014 | |
Equity Instruments Issued Pursuant To BEE Transactions [Abstract] | ' |
Equity Instruments Issued Pursuant To BEE Transactions | ' |
17. EQUITY INSTRUMENTS ISSUED PURSUANT TO BEE TRANSACTIONS | |
2014 transactions | |
On April 16, 2014, the Company issued 4,400,000 shares of its common stock pursuant to the BEE transactions discussed in Note 14. The charge related to the equity instruments issued pursuant to the BEE transactions was determined to be approximately $11.3 million and was expensed in full during the year ended June 30, 2014, because the BEE partners owned the shares on the issue date. This was a book entry and no cash was actually paid. The charge recorded was determined as the difference between the fair value of the loans provided to the BEE partners and the fair value of the equity instruments granted to the BEE partners. | |
The fair value of the loans provided to the BEE partners was determined to be their face value. The fair value of the equity instruments was calculated utilizing an adjusted Monte Carlo simulation discounted cash flow model which was developed for the purpose of the valuation of these BEE transactions. Cash flows were calculated for each simulated share price path, taking into account the bespoke features of the BEE transactions, as well as the expected interest and capital repayments (funded through the expected sales of BEE shares). The "adjustment" to the Monte Carlo simulation model incorporates a "jump diffusion" process to the standard Geometric Brownian Motion simulation, in order to capture the discontinuous share price jumps observed in the Company's share price movements on stock exchanges on which it is listed. Therefore, the simulated share price paths capture the idiosyncrasies of the observed Company share price movements. For each simulation, the resulting expected cash flows were discounted to the valuation date. | |
The Company used an expected volatility of 21.04%, an expected life of five years, a risk free rate of 7.90% and no future dividends in its calculation of the fair value of the equity instrument. The estimated expected volatility was calculated based on the Company's 30 day VWAP share price using the exponentially weighted moving average of returns. | |
2012 transaction | |
On April 19, 2012, the Company issued an option to purchase 8,955,000 shares of its common stock to a BEE consortium pursuant to a BEE transaction that it entered into on January 25, 2012. The option expired unexercised on April 19, 2013. The fair value of the option was determined as approximately $14.2 million and was expensed in full during the year ended June 30, 2012 because the option vested immediately on the grant date. This was a book entry and no cash was actually paid. Accordingly, the expense recorded during the year ended June 30, 2012, was not reversed during the year ended June 30, 2013, because the option had vested in full on the grant date. | |
The fair value was determined on the date that all conditions to the BEE transaction had been fulfilled using the Cox Ross Rubinstein binomial model. The Company used an expected volatility of 47%, an expected life of one year, a risk free rate of 0.90% and no future dividends in its calculation of the fair value. The estimated expected volatility was calculated based on the Company's 250 day volatility. | |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||
Stock-Based Compensation | ' | |||||||||
18. STOCK-BASED COMPENSATION | ||||||||||
Amended and Restated Stock Incentive Plan | ||||||||||
The Company's Amended and Restated Stock Incentive Plan (the "Plan") has been approved by its shareholders. No evergreen provisions are included in the Plan. This means that the maximum number of shares issuable under the Plan is fixed and cannot be increased without shareholder approval, the plan expires by its terms upon a specified date, and no new stock options are awarded automatically upon exercise of an outstanding stock option. Shareholder approval is required for the repricing of awards or the implementation of any award exchange program. The Plan permits Net1 to grant to its employees, directors and consultants incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, performance-based awards and other awards based on its common stock. The Remuneration Committee of the Company's Board of Directors ("Remuneration Committee") administers the Plan. | ||||||||||
The total number of shares of common stock issuable under the Plan is 8,552,580. The maximum number of shares for which awards, other than performance-based awards, may be granted in any combination during a calendar year to any participant is 569,120. The maximum limits on performance-based awards that any participant may be granted during a calendar year are 569,120 shares subject to stock option awards and $20 million with respect to awards other than stock options. Shares that are subject to awards which terminate or lapse without the payment of consideration may be granted again under the Plan. Shares delivered to the Company as part or full payment for the exercise of an option or to satisfy withholding obligations upon the exercise of an option may be granted again under the Plan in the Remuneration Committee's discretion. No awards may be granted under the Plan after June 7, 2019, but awards granted on or before such date may extend to later dates. | ||||||||||
Options | ||||||||||
General Terms of Awards | ||||||||||
Option awards are generally granted with an exercise price equal to the market price of the Company's stock at the date of grant, with vesting conditioned upon the recipient's continuous service through the applicable vesting date and expire 10 years after the date of grant. The options generally become exercisable in accordance with a vesting schedule ratably over a period of five years from the date of grant. The Company issues new shares to satisfy stock option award exercises but may also use treasury shares. | ||||||||||
Valuation Assumptions | ||||||||||
The fair value of each option is estimated on the date of grant using the Cox Ross Rubinstein binomial model that uses the assumptions noted in the following table. The estimated expected volatility is calculated based on the Company's 250 day volatility. The estimated expected life of the option was determined based historical behavior of employees who were granted options with similar terms. The Company has estimated no forfeitures for options awarded in 2014, 2013 and 2012. The table below presents the range of assumptions used to value options granted during the years ended June 30, 2014, 2013 and 2012: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Expected volatility | 50% | 49% | 37% - 39% | |||||||
Expected dividends | 0% | 0% | 0% | |||||||
Expected life (in years) | 3 | 3 | 3 | |||||||
Risk-free rate | 0.90% | 0.30% | 1.9% - 0.9% | |||||||
Restricted Stock | ||||||||||
General Terms of Awards | ||||||||||
Shares of restricted stock are considered to be participating non-vested equity shares (specifically contingently returnable shares) for the purposes of calculating earnings per share (refer Note 21) because, as discussed in more detail below, the recipient is obligated to transfer any unvested restricted stock back to the Company for no consideration and these shares of restricted stock are eligible to receive non-forfeitable dividend equivalents at the same rate as common stock. Restricted stock generally vests ratably over a three year period, with vesting conditioned upon the recipient's continuous service through the applicable vesting date and under certain circumstances, the achievement of certain performance targets, as described below. | ||||||||||
Restricted stock awarded to non-employee directors and employees of the Company vests ratably over a three-year period. Recipients are entitled to all rights of a stockholder of the Company except as otherwise provided in the restricted stock agreements. These rights include the right to vote and receive dividends and/or other distributions. However, the restricted stock agreements generally prohibit transfer of any nonvested and forfeitable restricted stock. If a recipient ceases to be a member of the Board of Directors or an employee for any reason, all shares of his restricted stock that are not then vested and nonforfeitable will be immediately forfeited and transferred to the Company for no consideration. | ||||||||||
The Company issues new shares to satisfy restricted stock awards. | ||||||||||
Valuation Assumptions | ||||||||||
The fair value of restricted stock is based on the closing price of the Company's stock quoted on The Nasdaq Global Select Market on the date of grant. | ||||||||||
Performance Conditions - Restricted Stock Granted in October and November 2010 | ||||||||||
In October 2010, the Remuneration Committee approved an award of 60,000 shares of restricted stock to an executive officer of the Company. Under the terms of the award, the shares would vest on June 30, 2014, conditioned upon the employee's continuous service through June 30, 2014, and on the employee receiving an incremental incentive bonus, as defined in the employee's employment agreement for each of the periods ended June 30, 2011, 2012, 2013 and 2014. | ||||||||||
Any outstanding award shares that had not become vested and nonforfeitable as of June 30, 2014, would be forfeited by the recipient on June 30, 2014, and transferred to the Company for no consideration. The October 2010 restricted stock award did not vest because the financial performance target was not met for June 30, 2011. Refer also "—Stock option and restricted stock activity—restricted stock" below. | ||||||||||
In November 2010, the Remuneration Committee approved an award of 83,000 shares of restricted stock to two of the Company's executive officers. The award provided for vesting of one-third of the award shares on each of November 10, 2011, 2012 and 2013, conditioned upon each recipient's continuous service through the applicable vesting date and the Company achieving the financial performance target for that vesting date. Specifically, the financial performance targets were Fundamental EPS, as defined below, of $1.44, $1.60 and $1.90 for the years ended June 30, 2011, 2012 and 2013, respectively. For the purpose of this award, Fundamental EPS was calculated as Company's diluted earnings per share as reflected in the Company's consolidated financial statements, measured in U.S. dollars and determined in accordance with GAAP, adjusted to exclude the effects related to the amortization of intangible assets and acquisition-related costs, stock-based compensation charges, foreign exchange gains and losses arising from foreign currency hedging transactions, and other items that the Committee determined in its discretion to be appropriate (for example, accounting changes and one-time or unusual items), and assumes a constant tax rate equal to the Company's effective tax rate for the year ended June 30, 2010. If Fundamental EPS for the specified fiscal year was not equal to or exceeded the Fundamental EPS target for such year, no award shares would vest or become nonforfeitable on the corresponding vesting date but would have been available to become vested and nonforfeitable as of a subsequent vesting date if the Fundamental EPS target for a subsequent fiscal year was met; provided that the recipient's service continued through such subsequent vesting date. | ||||||||||
Any outstanding award shares that have not become vested and nonforfeitable as of November 10, 2013, will be forfeited by the recipient on November 10, 2013, and transferred to the Company for no consideration. One-third of the award shares vested on November 10, 2011. The remaining two-thirds of the restricted stock award did not vest because the financial performance target of $1.90 was not met for June 30, 2013. Refer also "—Stock option and restricted stock activity—restricted stock" below. | ||||||||||
Stock Appreciation Rights | ||||||||||
The Remuneration Committee also may grant stock appreciation rights, either singly or in tandem with underlying stock options. Stock appreciation rights entitle the holder upon exercise to receive an amount in any combination of cash or shares of common stock (as determined by the Remuneration Committee) equal in value to the excess of the fair market value of the shares covered by the right over the grant price. No stock appreciation rights have been granted. | ||||||||||
Stock option and restricted stock activity | ||||||||||
Options | ||||||||||
The following table summarizes stock option activity for the years ended June 30, 2014, 2013 and 2012: | ||||||||||
Weighted | ||||||||||
Average | Weighted | |||||||||
Weighted | Remaining | Aggregate | Average | |||||||
average | Contractual | Intrinsic | Grant | |||||||
Number of | exercise | Term | Value | Date Fair | ||||||
shares | price ($) | (in years) | ($'000) | Value ($) | ||||||
Outstanding – July 1, 2011 | 2,120,656 | 18.44 | 6.82 | 243 | ||||||
Granted under Plan: August 2011 | 165,000 | 6.59 | 10 | 297 | 1.8 | |||||
Granted under Plan: October 2011 | 202,000 | 7.98 | 10 | 442 | 2.19 | |||||
Forfeitures | (240,073 | ) | 21.68 | - | ||||||
Outstanding – June 30, 2012 | 2,247,583 | 16.28 | 6.43 | 602 | - | |||||
Granted under Plan: August 2012 | 431,000 | 8.75 | 10 | 1,249 | 2.9 | |||||
Exercised | (30,000 | ) | 7.98 | 24 | ||||||
Outstanding – June 30, 2013 | 2,648,583 | 15.15 | 5.98 | 313 | ||||||
Granted under Plan: August 2013 | 224,896 | 7.35 | 10 | 568 | 2.53 | |||||
Exercised | (26,667 | ) | 7 | 91 | ||||||
Forfeited | (136,420 | ) | 23.51 | - | ||||||
Outstanding – June 30, 2014 | 2,710,392 | 14.16 | 5.38 | 3,909 | ||||||
The following table presents stock options vesting and expecting to vest as of June 30, 2014: | ||||||||||
Weighted | ||||||||||
Weighted | Average | |||||||||
average | Remaining | Aggregate | ||||||||
exercise | Contractual | Intrinsic | ||||||||
Number of | price | Term | Value | |||||||
shares | ($) | (in years) | ($'000) | |||||||
Vested and expecting to vest | ||||||||||
– June 30, 2014 | 2,710,392 | 14.16 | 5.38 | 3,909 | ||||||
These options have an exercise price range of $6.59 to $24.46. | ||||||||||
The following table presents stock options that are exercisable as of June 30, 2014: | ||||||||||
Weighted | ||||||||||
Average | ||||||||||
Weighted | Remaining | Aggregate | ||||||||
average | Contractual | Intrinsic | ||||||||
Number of | exercise | Term | Value | |||||||
shares | price ($) | (in years) | ($'000) | |||||||
Exercisable – June 30, 2014 | 2,085,830 | 16.01 | 4.54 | 1,789 | ||||||
During the years ended June 30, 2014, 2013 and 2012, approximately 462,333, 442,666, and 300,000 stock options became exercisable, respectively. Included in the 442,666 stock options are 30,000 stock options with respect to which the Remuneration Committee of the Board agreed to accelerate vesting prior to the resignation of a non-employee director. The stock option vesting was accelerated in recognition of this director's long service and valued contributions. During the year ended June 30, 2014, the Company received $0.2 million from 26,667 stock options exercised by employees. During the year ended June 30, 2013, the Company received approximately $0.2 million from 30,000 stock options exercised by the non-employee director that resigned. No stock options were exercised during the year ended June 30, 2012. During the years ended June 30, 2014 and 2012, respectively, employees forfeited 136,420 and 240,073 stock options. There were no forfeitures during the years ended June 30, 2013. The Company issues new shares to satisfy stock option exercises. | ||||||||||
Restricted stock | ||||||||||
The following table summarizes restricted stock activity for the years ended June 30, | ||||||||||
2014, 2013 and 2012: | ||||||||||
Weighted | ||||||||||
Number of | Average | |||||||||
Shares of | Grant Date | |||||||||
Restricted | Fair Value | |||||||||
Stock | ($'000) | |||||||||
Non-vested – July 1, 2011 | 103,672 | |||||||||
Granted – August 2011 | 30,155 | 199 | ||||||||
Granted – February 2012 | 550,000 | 6,111 | ||||||||
Granted – May 2012 | 2,574 | 23 | ||||||||
Vested - August 2011 | (6,141 | ) | 40 | |||||||
Vested - November 2011 | (27,667 | ) | 209 | |||||||
Total vested | (33,808 | ) | ||||||||
Forfeitures | (5,976 | ) | 50 | |||||||
Non-vested – June 30, 2012 | 646,617 | 7,061 | ||||||||
Granted – August 2012 | 21,569 | 189 | ||||||||
Vested – August 2012 | (23,436 | ) | 216 | |||||||
Vested – February 2013 | (183,333 | ) | 1,016 | |||||||
Vested – May 2013 | (858 | ) | 7 | |||||||
Total vested | (207,627 | ) | ||||||||
Forfeitures | (55,333 | ) | 407 | |||||||
Non-vested – June 30, 2013 | 405,226 | 4,393 | ||||||||
Granted – August 2013 | 187,963 | 1,382 | ||||||||
Vested – August 2013 | (16,907 | ) | 161 | |||||||
Vested – February 2014 | (183,333 | ) | 1,742 | |||||||
Total vested | (200,240 | ) | ||||||||
Forfeitures | (7,171 | ) | 84 | |||||||
Non-vested – June 30, 2014 | 385,778 | 3,534 | ||||||||
The fair value of restricted stock vested during the years ended June 30, 2014, 2013 and 2012, was $1.9 million, $1.2 million and $0.2 million, respectively. Non-employee directors resigning during the years ended June 30, 2014 and 2012, respectively forfeited 7,171 and 5,976 shares of restricted stock that had not vested. Included in the 23,436 shares of restricted stock that vested in August 2012 are 8,547 shares with respect to which the Remuneration Committee of the Board agreed to accelerate vesting prior to the resignation of a non-employee director. The second and third tranche totaling 55,333 shares of restricted stock granted in November 2010 to two executive officers did not vest because the agreed performance target was not achieved. | ||||||||||
Forfeited shares of restricted stock are returned to the Company and, in accordance with the Plan, are available for future issuances by the Remuneration Committee. | ||||||||||
Stock-based compensation charge and unrecognized compensation cost | ||||||||||
The Company has recorded a net stock compensation charge of $3.7 million, $3.9 million and $2.8 million for the years ended June 30, 2014, 2013 and 2012, respectively, which comprised: | ||||||||||
Allocated to | ||||||||||
cost of goods | ||||||||||
sold, IT | Allocated to | |||||||||
Total | processing, | selling, | ||||||||
charge | servicing | general and | ||||||||
(reversal) | and support | administration | ||||||||
Year ended June 30, 2014 | ||||||||||
Stock-based compensation charge | $ | 3,724 | $ | - | $ | 3,724 | ||||
Reversal of stock compensation charge related to restricted stock | ||||||||||
forfeited | (6 | ) | - | (6 | ) | |||||
Total – year ended June 30, 2014 | $ | 3,718 | $ | - | $ | 3,718 | ||||
Year ended June 30, 2013 | ||||||||||
Stock-based compensation charge | $ | 4,387 | $ | - | $ | 4,387 | ||||
Reversal of stock compensation charge related to restricted stock | ||||||||||
forfeited | (480 | ) | - | (480 | ) | |||||
Total – year ended June 30, 2013 | $ | 3,907 | $ | - | $ | 3,907 | ||||
Year ended June 30, 2012 | ||||||||||
Stock-based compensation charge | $ | 2,909 | $ | - | $ | 2,909 | ||||
Reversal of stock compensation charge related to options | ||||||||||
forfeited | (134 | ) | - | (134 | ) | |||||
Total – year ended June 30, 2012 | $ | 2,775 | $ | - | $ | 2,775 | ||||
The stock compensation charge and reversals have been allocated to cost of goods sold, IT processing, servicing and support and selling, general and administration based on the allocation of the cash compensation paid to the employees. | ||||||||||
As of June 30, 2014, the total unrecognized compensation cost related to stock options was approximately $0.9 million, which the Company expects to recognize over approximately two years. As of June 30, 2014, the total unrecognized compensation cost related to restricted stock awards was approximately $2.3 million, which the Company expects to recognize over approximately two years. | ||||||||||
Tax consequences | ||||||||||
There are no tax consequences related to options and restricted stock granted to employees of Company subsidiaries incorporated in South Africa. The Company has recorded a deferred tax asset of approximately $1.6 million and $1.4 million, respectively, for the years ended June 30, 2014 and 2013, related to the stock-based compensation charge recognized related to employees of Net1 as it is able to deduct 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. | ||||||||||
Deconsolidation_Of_Businesses_
Deconsolidation Of Businesses Sold Or Liquidated And Disposal Of Business | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Deconsolidation Of Businesses Sold Or Liquidated And Disposal Of Business [Abstract] | ' | |||||||
Deconsolidation Of Businesses Sold Or Liquidated And Disposal Of Business | ' | |||||||
19. DECONSOLIDATION OF BUSINESSES SOLD OR LIQUIDATED AND DISPOSAL OF BUSINESS | ||||||||
The profit (loss) on deconsolidation of businesses sold or liquidated and disposal of business during the years ended June 30, 2014, 2013 and 2012 are summarized in the table below: | ||||||||
2014 | 2013 | 2012 | ||||||
Profit on sale of MediKredit Integrated Healthcare Solutions Proprietary Limited | ||||||||
("MediKredit") | $ | 4,125 | $ | - | $ | - | ||
Profit on disposal of assets related to the business of Net 1 Universal Electronic | ||||||||
Technological Solutions (Pty) Ltd ("NUETS business") | 2,081 | - | - | |||||
Loss on liquidation of Net1 UTA | (6,261 | ) | - | - | ||||
Profit on liquidation of SmartSwitch Nigeria | - | - | 3,994 | |||||
Net profit (loss) for the year ended June 30, | $ | (55 | ) | $ | - | $ | 3,994 | |
2014 transactions | ||||||||
Sale of MediKredit | ||||||||
On June 17, 2014, the Company sold its MediKredit subsidiary to an unrelated third party. The Company has recorded a profit of approximately $4.1 million related to the sale in selling, general and administration expense on its consolidated statement of operations for the year ended June 30, 2014. The profit has been allocated to corporate/eliminations. The sales price will be paid in three tranches, approximately 57% on June 17, 2014, approximately 14% on June 1, 2015, and the remainder on June 1, 2016. In addition, the parties have agreed that MediKredit may continue to operate at the Company's premises at no cost to the purchaser until September 30, 2014. Furthermore, the parties have agreed that MediKredit will provide certain development, support and maintenance services (collectively "Services") related to technology used in the United States at no cost to the Company up to an amount of $0.3 million, translated at the foreign exchange rates applicable as of June 30, 2014. The Company determined that the Services comprise part of the sales price of MediKredit and have increased the profit on sale accordingly. In addition, the Company has determined that the provision of an operating area within the Company's premises represents an obligation on it, and has reduced the profit on sale accordingly. The fair value of the Services and free rental of premises has been determined using prices that would have been charged between unrelated third parties. Finally, the Company was required to release a gain of approximately $2.0 million from its foreign currency transaction reserve which has been included in the profit on sale. During the year ended June 30, 2014, the Company incurred transaction-related expenditure of $0.01 million related to the sale of MediKredit. | ||||||||
The purchaser is contingently obligated to pay the Company additional amounts based on future expansion of the MediKredit business in certain circumstances. The Company has not recorded any of these amounts during the year ended June 30, 2014, as none of the contingent events have occurred as of June 30, 2014. | ||||||||
Disposal of assets related to NUETS business | ||||||||
On June 30, 2014, the Company sold the NUETS business, which consisted primarily of customer contracts, other than contracts for UEPS systems in Botswana and Namibia, and equipment for approximately $2.2 million in cash. The Company received $0.2 million of these cash proceeds in June 2014, and the remaining $2.0 million was received in July 2014, and is included in accounts receivable, net, as of June 30, 2014. The Company has recorded a profit of approximately $2.1 million on the sale in selling, general and administration expense on its consolidated statement of operations for the year ended June 30, 2014. The profit has been allocated to corporate/eliminations. The shareholders of the purchaser comprise a former employee of the Company, a US-based economic development equity fund and other unrelated individuals and private companies. The Company has provided the purchaser with a non-exclusive, perpetual, worldwide license to use the Company's UEPS technology. The purchaser may not use this technology in South Africa to provide payment services and specifically may not use the technology in any manner to service the Ministry of Social Development in South Africa and/or SASSA. The parties have agreed that the Company will provide certain administrative and technical support services related to the NUETS business until March 2015. During the year ended June 30, 2014, the Company incurred transaction-related expenditure of $0.06 million related to the sale of NUETS business. | ||||||||
Liquidation of Net1 UTA | ||||||||
The Company has substantially liquidated its Net1 UTA business due to an inability to implement and expand its technology into new markets on a profitable basis. Net1 UTA's operations were streamlined a number of years ago and the Company did not incur significant cash costs to liquidate Net1 UTA. However, the Company was required to release approximately $6.3 million from its foreign currency transaction reserve which has resulted in a loss on liquidation of Net1 UTA. This non-cash loss on liquidation of Net1 UTA has been recorded in selling, general and administration expense on its consolidated statement of operations for the year ended June 30, 2014. The loss has been allocated to corporate/eliminations. | ||||||||
2012 transaction | ||||||||
Liquidation of SmartSwitch Nigeria | ||||||||
The Company ceased operations in the Federation of Nigeria due to an inability to implement its technology on a profitable basis. During the year ended June 30, 2012, the Company, together with the other shareholders, agreed to liquidate SmartSwitch Nigeria, the company through which operating activities in Nigeria were performed. SmartSwitch Nigeria was capitalized primarily with shareholder loans. The shareholders of SmartSwitch Nigeria agreed to waive all outstanding capital and interest repayments related to the loan funding initially provided as part of the liquidation processes. The non-cash profit on liquidation of SmartSwitch Nigeria of $4.0 million includes the write back of all assets and liabilities, including non-controlling interest loans, of SmartSwitch Nigeria, except for expected liabilities related to the liquidation of SmartSwitch Nigeria. The Company has recorded the profit in selling, general and administration expense on its consolidated statement of operations for the year ended June 30, 2012. The profit has been allocated to corporate/eliminations. | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||
20. INCOME TAXES | |||||||||||||||||||
Income tax provision | |||||||||||||||||||
The table below presents the components of income before income taxes for the years ended June 30, 2014, 2013 and 2012: | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
South Africa | $ | 121,338 | $ | 38,654 | $ | 67,054 | |||||||||||||
United States | (9,923 | ) | (10,075 | ) | (6,340 | ) | |||||||||||||
Other | (2,273 | ) | (1,300 | ) | (333 | ) | |||||||||||||
Income before income taxes | $ | 109,142 | $ | 27,279 | $ | 60,381 | |||||||||||||
Presented below is the provision for income taxes by location of the taxing jurisdiction for the years ended June 30, 2014, 2013 and 2012: | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Current income tax | $ | 61,902 | $ | 33,968 | $ | 49,092 | |||||||||||||
South Africa | 41,326 | 15,418 | 26,787 | ||||||||||||||||
United States | 14,838 | 16,061 | 20,746 | ||||||||||||||||
Other | 5,738 | 2,489 | 1,559 | ||||||||||||||||
Deferred taxation (benefit) charge | (7,887 | ) | (4,915 | ) | (4,598 | ) | |||||||||||||
South Africa | (3,345 | ) | (2,037 | ) | (2,941 | ) | |||||||||||||
United States | (107 | ) | (331 | ) | 31 | ||||||||||||||
Other | (4,435 | ) | (2,547 | ) | (1,688 | ) | |||||||||||||
Capital gains tax | 202 | 7 | 1,465 | ||||||||||||||||
Secondary taxation on companies | - | - | 327 | ||||||||||||||||
Change in tax rate | - | - | (18,315 | ) | |||||||||||||||
Foreign tax credits generated – United States | (14,838 | ) | (14,404 | ) | (12,035 | ) | |||||||||||||
Income tax provision | $ | 39,379 | $ | 14,656 | $ | 15,936 | |||||||||||||
There were no significant capital gains taxes paid during the years ended June 30, 2014 and 2013, respectively. The capital gains tax paid during the year ended June 30, 2012, represents the taxes paid resulting from an intercompany capital transaction in South Africa. | |||||||||||||||||||
The Company's South African subsidiary paid a dividend to Net1 after the tax law had changed but before the effective date of the South African dividends withholding tax which resulted in the payment of STC in the third quarter of the year ended June 30, 2012. For the first half of the year ended June 30, 2012, the Company's effective tax rate included an accrual for STC and therefore any STC obligation arising during these periods was charged against the STC liability provided. This STC liability was released during the year end June 30, 2012, as a result of the change in tax law discussed below. | |||||||||||||||||||
There were no changes to the enacted tax rate in the years ended June 30, 2014 and 2013. On December 20, 2011, there was a change in South African tax law to impose a dividends withholding tax (a tax levied and withheld by a company on distributions to its shareholders) to replace STC. The change was effective on April 1, 2012. As a result, the Company has recorded a net deferred taxation benefit of approximately $18.3 million in income taxation expense in its consolidated statements of operations during the year ended June 30, 2012. | |||||||||||||||||||
The movement in the valuation allowance for the year ended June 30, 2014, relates to releases of the valuation allowance resulting from the utilization of foreign tax credits during the year and deconsolidation of net operating loss carryforwards for MediKredit. The movement in the valuation allowance for the year ended June 30, 2013, relates to valuation allowances for foreign tax credits and valuation allowances related to net operating loss carryforwards for the Company's South African subsidiaries, primarily MediKredit. As a result of the change in South African tax law during the year ended June 30, 2012, and the Company's intention to permanently reinvest its undistributed earnings in South Africa, the Company did not believe it would be able to recover foreign tax credits previously recognized of $8.2 million. The movement in the valuation allowance during the year ended June 30, 2012, included a valuation allowance related to this foreign tax credits. | |||||||||||||||||||
Net1 included actual and deemed dividends received from one of its South African subsidiaries in its years ended June 30, 2014, 2013 and 2012, taxation computation. Net1 applied net operating losses against this income. Net1 generated foreign tax credits as a result of the inclusion of the dividends in its taxable income. Net1 has applied certain of these foreign tax credits against its current income tax provision for the year ended June 30, 2014, 2013 and 2012, respectively. | |||||||||||||||||||
A reconciliation of income taxes, calculated at the fully-distributed South African income tax rate to the Company's effective tax rate, for the years ended June 30, 2014, 2013 and 2012 is as follows: | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Income tax rate reconciliation: | |||||||||||||||||||
Income taxes at fully-distributed South African tax rates | 28 | % | 28 | % | 28 | % | |||||||||||||
Non-deductible items | 4.71 | % | 6.78 | % | 6.6 | % | |||||||||||||
Foreign tax rate differential | 1.89 | % | 10.39 | % | 7.22 | % | |||||||||||||
Foreign tax credits | (13.59 | %) | (52.80 | %) | (21.12 | %) | |||||||||||||
Taxation on deemed dividends in the United States | 13.46 | % | 57.32 | % | 31.29 | % | |||||||||||||
Capital gains tax paid | 0.19 | % | 0.03 | % | 2.43 | % | |||||||||||||
Secondary taxation on companies | - | % | - | % | 0.54 | % | |||||||||||||
Movement in valuation allowance | 1.23 | % | 9.4 | % | 1.23 | % | |||||||||||||
Prior year adjustments | 0.19 | % | (5.39 | %) | 0.53 | % | |||||||||||||
Change in tax law | - | % | - | % | (30.33 | %) | |||||||||||||
Income tax provision | 36.08 | % | 53.73 | % | 26.39 | % | |||||||||||||
The non-deductible items during the year ended June 30, 2014, relates principally to expenses that are not deductible for tax purposes, including the charge related to the equity awards issued pursuant to the Company's BEE transactions, stock-based compensation charges, costs incurred to support foreign related entities and interest expense. The non-deductible items during the year ended June 30, 2013, relates principally to expenses that are not deductible for tax purposes, including stock-based compensation charges, costs incurred to support foreign related entities and interest expense. The non-deductible items during the year ended June 30, 2012, relates principally to expenses that are not deductible for tax purposes, including stock-based compensation charges, interest expense and an equity award issued pursuant to the Company's BEE transaction. The foreign tax rate differential represents the difference between statutory tax rates in South Africa and foreign jurisdictions, primarily the United States. | |||||||||||||||||||
Deferred tax assets and liabilities | |||||||||||||||||||
Deferred income taxes reflect the temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The primary components of the temporary differences that gave rise to the Company's deferred tax assets and liabilities as at June 30, and their classification, were as follows : | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Total deferred tax assets | |||||||||||||||||||
Net operating loss carryforwards | $ | 1,901 | $ | 12,024 | |||||||||||||||
Provisions and accruals | 5,470 | 3,164 | |||||||||||||||||
FTS patent | 909 | 1,088 | |||||||||||||||||
Intangible assets | 123 | 17,150 | |||||||||||||||||
Foreign tax credits | 23,338 | 24,637 | |||||||||||||||||
Other | 7,765 | 5,537 | |||||||||||||||||
Total deferred tax assets before valuation allowance | 39,506 | 63,600 | |||||||||||||||||
Valuation allowances | (25,153 | ) | (54,117 | ) | |||||||||||||||
Total deferred tax assets, net of valuation allowance | 14,353 | 9,483 | |||||||||||||||||
Total deferred tax liabilities: | |||||||||||||||||||
Intangible assets | 16,600 | 18,729 | |||||||||||||||||
Other | 5,824 | 4,543 | |||||||||||||||||
Total deferred tax liabilities | 22,424 | 23,272 | |||||||||||||||||
Reported as | |||||||||||||||||||
Current deferred tax assets | 7,451 | 4,938 | |||||||||||||||||
Long term deferred tax liabilities | 15,522 | 18,727 | |||||||||||||||||
Net deferred income tax liabilities | $ | 8,071 | $ | 13,789 | |||||||||||||||
Decrease in total deferred tax assets before valuation allowance | |||||||||||||||||||
Net operating loss carryforwards | |||||||||||||||||||
Net operating loss carryforwards have decreased primarily due to the sale of MediKredit and substantial liquidation of Net1 UTA during the year ended June 30, 2014. | |||||||||||||||||||
Net operating loss carryforwards related to these entities as of June 30, 2013, were provided in full in previous years. In addition, the Company provided for the full net operating losses incurred by MediKredit and Net1 UTA during the year ended June 30, 2014. The Company deconsolidated MediKredit's net operating loss carryforwards and associated valuation allowance of $3.1 million when it was sold in June 2014. Furthermore, as a result of the substantial liquidation of Net1 UTA in 2014, the full valuation allowance of $8.9 million has been applied against its net operating loss carryforwards. | |||||||||||||||||||
Intangible assets | |||||||||||||||||||
Included in total deferred tax assets – intangible assets as of June 30, 2013, is an intangible asset related to license rights in Net1 UTA. These license rights are termed software for Austrian tax purposes and were valued for Austrian tax purposes based on previous license payments at €50.76 million in June 2006. The Company expected to amortize these license rights in its tax returns over a period of 15 years. Any unused amounts were not expected to be carried forward to the subsequent year of assessment. During the years ended June 30, 2014, 2013 and 2012, Net1 UTA utilized approximately $0.02 million, $0.05 million and $0.04 million, respectively, of these license rights against its taxable income. As a result of the substantial liquidation of Net1 UTA in 2014, the full valuation allowance of $8.0 million has been applied against the gross carrying value of this deferred tax asset. Accordingly, there was no impact on the Company's income tax expense during the year ended June 30, 2014. | |||||||||||||||||||
Net1 Applied Technologies Austria GmbH ("Net1Austria") generated tax deductible goodwill related to the acquisition of Net1 UTA in August 2008 and under Austrian tax law Net1Austria can deduct up to 50% of the goodwill recognized, as defined under Austrian tax law, over a period of 15 years. Unused amounts are carried forward to subsequent years of assessment and are included in net operating loss carryforwards. The Company did not utilize the goodwill deferred tax asset during the years ended June 30, 2014 and 2013, respectively. As a result of the substantial liquidation of Net1 UTA in 2014, the full valuation allowance of $7.9 million has been applied against the gross carrying value of this deferred tax asset. Accordingly, there was no impact on the Company's income tax expense during the year ended June 30, 2014. | |||||||||||||||||||
Decrease in total deferred tax liabilities | |||||||||||||||||||
Intangible assets | |||||||||||||||||||
Deferred tax liabilities – intangible assets have decreased during the year ended June 30, 2014, primarily as a result of the amortization of the underlying KSNET intangible assets during the year. | |||||||||||||||||||
Decrease in valuation allowance | |||||||||||||||||||
At June 30, 2014, the Company had deferred tax assets of $14.4 million (2013: $9.5 million), net of the valuation allowance. Management believes, based on the weight of available positive and negative evidence it is more likely than not that the Company will realize the benefits of these deductible differences, net of the valuation allowance. However, the amount of the deferred tax asset considered realizable could be adjusted in the future if estimates of taxable income are revised. | |||||||||||||||||||
At June 30, 2014, the Company had a valuation allowance of $25.2 million (2013: $54.1 million) to reduce its deferred tax assets to estimated realizable value. | |||||||||||||||||||
The movement in the valuation allowance for the years ended June 30, 2014 and 2013, is presented below: | |||||||||||||||||||
Net | |||||||||||||||||||
Foreign | Tax | operating | |||||||||||||||||
tax | deductible | loss carry- | FTS | ||||||||||||||||
Total | credits | goodwill | forwards | patent | Other | ||||||||||||||
1-Jul-12 | $ | 47,496 | $ | 19,089 | $ | 17,985 | $ | 9,560 | $ | 660 | $ | 202 | |||||||
Reversed to statement of operations | - | - | - | - | - | - | |||||||||||||
Charged to statement of operations | 8,201 | 5,547 | - | 2,621 | - | 33 | |||||||||||||
Utilized | (1,733 | ) | - | (1,643 | ) | - | (90 | ) | - | ||||||||||
Foreign currency adjustment | 153 | - | 615 | (367 | ) | (96 | ) | 1 | |||||||||||
30-Jun-13 | 54,117 | 24,636 | 16,957 | 11,814 | 474 | 236 | |||||||||||||
Reversed to statement of operations | (1,412 | ) | (1,412 | ) | - | - | - | - | |||||||||||
Charged to statement of operations | 1,442 | 113 | - | 1,329 | - | - | |||||||||||||
Utilized | (26,698 | ) | - | (17,682 | ) | (9,016 | ) | - | - | ||||||||||
Deconsolidation | (3,075 | ) | - | - | (3,075 | ) | - | - | |||||||||||
Foreign currency adjustment | 779 | - | 725 | 192 | (105 | ) | (33 | ) | |||||||||||
30-Jun-14 | $ | 25,153 | $ | 23,337 | $ | - | $ | 1,244 | $ | 369 | $ | 203 | |||||||
Net operating loss carryforwards and foreign tax credits | |||||||||||||||||||
United States | |||||||||||||||||||
As of June 30, 2014, Net1 had net operating loss carryforwards that will expire, if unused, as follows: | |||||||||||||||||||
Year of expiration | US net | ||||||||||||||||||
operating loss | |||||||||||||||||||
carry | |||||||||||||||||||
forwards | |||||||||||||||||||
2024 | $ | 3,340 | |||||||||||||||||
During the year ended June 30, 2014 and 2013, Net1 generated additional foreign tax credits related to the cash dividends received. Net1 had no net unused foreign tax credits that are more likely than not to be realized as of June 30, 2014 and 2013, respectively. The unused foreign tax credits generated expire after ten years in 2023, 2022, 2021, 2020 and 2019. | |||||||||||||||||||
South Africa | |||||||||||||||||||
Net operating losses incurred in South Africa generally expire if a company does not trade during the year. In South Africa, the subsidiary companies that incurred the losses are currently trading and will continue to trade for the foreseeable future. | |||||||||||||||||||
Uncertain tax positions | |||||||||||||||||||
As of each of June 30, 2014 and 2013, respectively the Company has unrecognized tax benefits of $1.2 million, all of which would impact the Company's effective tax rate. The Company files income tax returns mainly in South Africa, South Korea, Austria, Botswana and in the US federal jurisdiction. As of June 30, 2014, 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, 2009. The Company is subject to income tax in other jurisdictions outside South Africa, none of which are individually material to its financial position, statement of cash flows, or results of operations. The Company does not expect the change related to unrecognized tax benefits will have a significant impact on its results of operations or financial position in the next 12 months. | |||||||||||||||||||
The following is a reconciliation of the total amounts of unrecognized tax benefits for the year ended June 30, 2014, 2013 and 2012: | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Unrecognized tax benefits - opening balance | $ | 1,150 | $ | 1,314 | $ | 2,664 | |||||||||||||
Gross decreases - tax positions in prior periods | - | (170 | ) | (1,159 | ) | ||||||||||||||
Gross increases - tax positions in current period | 38 | 216 | 97 | ||||||||||||||||
Lapse of statute limitations | - | - | - | ||||||||||||||||
Foreign currency adjustment | (28 | ) | (210 | ) | (288 | ) | |||||||||||||
Unrecognized tax benefits - closing balance | $ | 1,160 | $ | 1,150 | $ | 1,314 | |||||||||||||
As of each of June 30, 2014 and 2013, the Company had accrued interest related to uncertain tax positions of approximately $0.2 million, respectively, on its balance sheet. | |||||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Earnings Per Share | ' | |||||||||
21. EARNINGS PER SHARE | ||||||||||
Basic earnings per share include 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 same rate as common stock. Basic earnings per share have been calculated using the two-class method and basic earnings per share for the years ended June 30, 2014, 2013 and 2012, reflects only undistributed earnings. The computation below of basic earnings per share excludes the net income 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 stock from the denominator. | ||||||||||
Diluted 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 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. The calculation of diluted earnings per share includes the dilutive effect of a portion of the restricted stock granted to employees in October 2010, November 2010 and February 2012 as these shares of restricted stock are considered contingently returnable shares for the purposes of the diluted earnings per share calculation and the vesting conditions in respect of a portion of the restricted stock had been satisfied. The vesting conditions are discussed in Note 18. | ||||||||||
The following table presents net income attributable to Net1 (income from continuing operations) and the share data used in the basic and diluted earnings per share computations using the two-class method for the years ended June 30, 2014, 2013 and 2012: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands except percent and | ||||||||||
per share data) | ||||||||||
Numerator: | ||||||||||
Net income attributable to Net1 | $ | 70,111 | $ | 12,977 | $ | 44,651 | ||||
Undistributed earnings | 70,111 | 12,977 | 44,651 | |||||||
Percent allocated to common shareholders (Calculation 1) | 99 | % | 99 | % | 99 | % | ||||
Numerator for earnings per share: basic and diluted | $ | 69,376 | $ | 12,836 | $ | 44,397 | ||||
Denominator: | ||||||||||
Denominator for basic earnings per share: weighted-average common | ||||||||||
shares outstanding | 45,997 | 45,057 | 44,930 | |||||||
Effect of dilutive securities: | ||||||||||
Performance shares related to acquisition | - | 95 | - | |||||||
Stock options | 119 | 30 | 45 | |||||||
Denominator for diluted earnings per share: adjusted weighted | ||||||||||
average common shares outstanding and assumed conversion | 46,116 | 45,182 | 44,975 | |||||||
Earnings per share: | ||||||||||
Basic | $ | 1.51 | $ | 0.28 | $ | 0.99 | ||||
Diluted | $ | 1.5 | $ | 0.28 | $ | 0.99 | ||||
(Calculation 1) | ||||||||||
Basic weighted-average common shares outstanding (A) | 45,997 | 45,057 | 44,930 | |||||||
Basic weighted-average common shares outstanding and unvested | ||||||||||
restricted shares expected to vest (B) | 46,484 | 45,553 | 45,187 | |||||||
Percent allocated to common shareholders (A) / (B) | 99 | % | 99 | % | 99 | % | ||||
Options to purchase 1,516,240 shares of the Company's common stock at prices ranging from $7.35 to $24.46 per share were outstanding during the year ended June 30, 2014, but were not included in the computation of diluted earnings per share because the options' exercise price were greater than the average market price of the Company's common shares. The options, which expire at various dates through on August 22, 2022, were still outstanding as of June 30, 2014. | ||||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||
Supplemental Cash Flow Information | ' | ||||||
22. SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Supplemental cash flow information: | |||||||
The following table presents the supplemental cash flow disclosures for the years ended June 30, 2014, 2013 and 2012: | |||||||
2014 | 2013 | 2012 | |||||
Cash received from interest | $ | 14,703 | $ | 12,043 | $ | 9,180 | |
Cash paid for interest | $ | 6,969 | $ | 7,927 | $ | 9,773 | |
Cash paid for income taxes | $ | 42,417 | $ | 21,900 | $ | 30,704 | |
The cash flows associated with the December 2013 BEE transactions and buy back of shares from the BEE partners as described in Note 14 were all denominated in South African rand and net settled and there were no actual cash flow transactions between the parties. The Company would have recorded the following movements in its investing and financing activities in its consolidated statement of cash flows for the year ended June 30, 2014, if cash had actually flowed between the parties as follows: | |||||||
2014 | |||||||
Cash (used in ) provided by investing activities: | |||||||
Loans provided to BEE partners | ($ | 25,054 | ) | ||||
Loans repaid by BEE partners | $ | 24,574 | |||||
Cash provided by (used in) financing activities: | |||||||
Issue of shares of the Company's common stock to BEE partners | $ | 25,054 | |||||
Purchase of shares from BEE partners | ($ | 24,858 | ) | ||||
In addition, the equity instrument charges discussed in Note 17 and expensed during the years ended June 30, 2014 and 2012, respectively, are book entries and were not paid in cash. | |||||||
Operating_Segments
Operating Segments | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Operating Segments [Abstract] | ' | |||||||||
Operating Segments | ' | |||||||||
23. OPERATING SEGMENTS | ||||||||||
Change to internal reporting structure and restatement of previously reported information | ||||||||||
During June 2014, the Company's chief operating decision maker simplified its operating and internal reporting structures from five reportable segments to three. Previously reported information has been restated. | ||||||||||
Operating segments | ||||||||||
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. | ||||||||||
The Company currently has three reportable segments: South African transaction processing, International transaction processing and Financial inclusion and applied technologies. The South African transaction processing and Financial inclusion and applied technologies segments operate mainly within South Africa and the International transaction processing segment operates mainly within South Korea. The Company's reportable segments offer different products and services and require different resources and marketing strategies and share the Company's assets. | ||||||||||
The South African transaction processing segment currently consists mainly of a welfare benefit distribution service provided to the South African government and transaction processing for retailers, utilities, medical-related claim service customers and banks. Fee income is earned based on the number of recipient cardholders paid. Utility providers and banks are charged a fee for transaction processing services performed on their behalf at retailers. This segment has individually significant customers that each provides more than 10% of the total revenue of the Company. For the year ended June 30, 2014, there was one such customer, providing 27% of total revenue (2013: one such customer, providing 42% of total revenue; 2012: one such customer, providing 41% of total revenue). | ||||||||||
The International transaction processing segment consists mainly of activities in South Korea from which the Company generates revenue from the provision of payment processing services to merchants and card issuers through its VAN. This segment generates fee revenue from the provision of payment processing services and to a lesser extent from the sale of goods, primarily point of sale terminals, to customers in South Korea. The segment also generates transaction fee revenue from transaction processing of UEPS-enabled smartcards in Botswana and, until February 2013, through NUETS initiative in Iraq as well as transaction processing of medical-related claims in the United States. | ||||||||||
The Financial inclusion and applied technologies segment derives revenue from the provision of smart card accounts, as a fixed monthly fee per card is charged for the maintenance of these accounts, and the provision of short-term loans as a principal. This segment also includes fee income and associated expenses from merchants and card holders using the Company's merchant acquiring system, the sale of prepaid products (electricity and airtime) as well as the sale of hardware and software. Finally, the Company earns premium income from the sale of life insurance products and investment income through its insurance business. | ||||||||||
Corporate/eliminations includes the Company's head office cost center and the amortization of acquisition-related intangible assets. The charges related to the BEE equity instrument issued during the years ended June 30, 2014 and 2012 (refer to Note 17), and the profit related to the deconsolidation of subsidiaries and disposal of business (refer to Note 19), during the years ended June 30, 2014 and 2012, has been allocated to corporate/eliminations. | ||||||||||
The reconciliation of the reportable segments revenue to revenue from external customers for the years ended June 30, 2014, 2013 and 2012, respectively, is as follows: | ||||||||||
Revenue | ||||||||||
From | ||||||||||
Reportable | Inter- | external | ||||||||
Segment | segment | customers | ||||||||
South African transaction processing | $ | 261,577 | $ | 11,543 | $ | 250,034 | ||||
International transaction processing | 152,725 | - | 152,725 | |||||||
Financial inclusion and applied technologies | 207,595 | 28,698 | 178,897 | |||||||
Total for the year ended June 30, 2014 | 621,897 | 40,241 | 581,656 | |||||||
South African transaction processing | 242,739 | 495 | 242,244 | |||||||
International transaction processing | 135,954 | - | 135,954 | |||||||
Financial inclusion and applied technologies | 108,001 | 34,052 | 73,949 | |||||||
Total for the year ended June 30, 2013 | 486,694 | 34,547 | 452,147 | |||||||
South African transaction processing | 194,630 | 3,011 | 191,619 | |||||||
International transaction processing | 120,625 | - | 120,625 | |||||||
Financial inclusion and applied technologies | 90,792 | 12,772 | 78,020 | |||||||
Total for the year ended June 30, 2012 | $ | 406,047 | $ | 15,783 | $ | 390,264 | ||||
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 allocated to Corporate/Eliminations, all under GAAP. The reconciliation of the reportable segments measure of profit or loss to income before income taxes for the years ended June 30, 2014, 2013 and 2012, respectively, is as follows: | ||||||||||
For the years ended June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Reportable segments measure of profit or loss | $ | 144,038 | $ | 50,383 | $ | 94,439 | ||||
Operating income: Corporate/Eliminations | (42,240 | ) | (27,221 | ) | (33,289 | ) | ||||
Interest income | 14,817 | 12,083 | 8,576 | |||||||
Interest expense | (7,473 | ) | (7,966 | ) | (9,345 | ) | ||||
Income before income taxes | $ | 109,142 | $ | 27,279 | $ | 60,381 | ||||
The following tables summarize segment information which is prepared in accordance with GAAP for the years ended June 30, 2014, 2013 and 2012: | ||||||||||
For the years ended June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Revenues | ||||||||||
South African transaction processing | $ | 261,577 | $ | 242,739 | $ | 194,630 | ||||
International transaction processing | 152,725 | 135,954 | 120,625 | |||||||
Financial inclusion and applied technologies | 207,595 | 108,001 | 90,792 | |||||||
Total | 621,897 | 486,694 | 406,047 | |||||||
Operating income (loss) | ||||||||||
South African transaction processing | 61,401 | (21,316 | ) | 33,906 | ||||||
International transaction processing | 21,952 | 14,208 | 14,649 | |||||||
Financial inclusion and applied technologies | 60,685 | 57,491 | 45,884 | |||||||
Subtotal: Operating segments | 144,038 | 50,383 | 94,439 | |||||||
Corporate/Eliminations | (42,240 | ) | (27,221 | ) | (33,289 | ) | ||||
Total | 101,798 | 23,162 | 61,150 | |||||||
Depreciation and amortization | ||||||||||
South African transaction processing | 7,036 | 7,516 | 2,982 | |||||||
International transaction processing | 15,823 | 14,183 | 13,209 | |||||||
Financial inclusion and applied technologies | 874 | 678 | 751 | |||||||
Subtotal: Operating segments | 23,733 | 22,377 | 16,942 | |||||||
Corporate/Eliminations | 16,553 | 18,222 | 19,557 | |||||||
Total | 40,286 | 40,599 | 36,499 | |||||||
Expenditures for long-lived assets | ||||||||||
South African transaction processing | 3,425 | 9,400 | 23,332 | |||||||
International transaction processing | 19,393 | 12,490 | 14,994 | |||||||
Financial inclusion and applied technologies | 1,088 | 857 | 841 | |||||||
Subtotal: Operating segments | 23,906 | 22,747 | 39,167 | |||||||
Corporate/Eliminations | - | - | - | |||||||
Total | $ | 23,906 | $ | 22,747 | $ | 39,167 | ||||
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. | ||||||||||
It is impractical to disclose revenues from external customers for each product and service or each group of similar products and services. | ||||||||||
Geographic Information | ||||||||||
Revenues based on the geographic location from which the sale originated for the years ended June 30, are presented in the table below: | ||||||||||
2014 | 2013 | 2012 | ||||||||
South Africa | $ | 428,931 | $ | 317,916 | $ | 272,063 | ||||
South Korea | 146,667 | 129,338 | 114,096 | |||||||
Rest of world | 6,058 | 4,893 | 4,105 | |||||||
Total | $ | 581,656 | $ | 452,147 | $ | 390,264 | ||||
Long-lived assets based on the geographic location for the years ended June 30, are presented in the table below: | ||||||||||
Long-lived assets | ||||||||||
2014 | 2013 | 2012 | ||||||||
South Africa | $ | 105,627 | $ | 117,858 | $ | 140,308 | ||||
South Korea | 229,830 | 213,589 | 224,272 | |||||||
Rest of world | 6,593 | 7,676 | 6,911 | |||||||
Total | $ | 342,050 | $ | 339,123 | $ | 371,491 | ||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | ||
Jun. 30, 2014 | |||
Commitments And Contingencies [Abstract] | ' | ||
Commitments And Contingencies | ' | ||
24. COMMITMENTS AND CONTINGENCIES | |||
Operating lease commitments | |||
The Company leases certain premises. At June 30, 2014, the future minimum payments under operating leases consist of: | |||
Due within 1 year | $ | 3,490 | |
Due within 2 years | 2,608 | ||
Due within 3 years | 1,126 | ||
Due within 4 years | 363 | ||
Due within 5 years | $ | - | |
Operating lease payments related to the premises and equipment were $7.5 million, $15.9 million and $7.5 million, respectively, for the years ended June 2014, 2013 and 2012, respectively. | |||
Capital commitments | |||
As of June 30, 2014 and 2013, the Company had outstanding capital commitments of approximately $0.2 million and $0.3 million, respectively. | |||
Purchase obligations | |||
As of June 30, 2014 and 2013, the Company had purchase obligations totaling $5.5 million and $3.9 million, respectively. The purchase obligations as of June 30, 2014, primarily include inventory that will be delivered to the Company and sold to customers in the next twelve months. | |||
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 required to procure these guarantees for these third parties to operate its business. | |||
Nedbank has issued guarantees to these third parties amounting to ZAR 135.1 million ($12.8 million, translated at exchange rates applicable as of June 30, 2014) and thereby utilizing part of the Company's short-term facility. The Company in turn has provided nonrecourse, unsecured counter-guarantees to Nedbank for ZAR 125.0 million ($11.8 million, translated at exchange rates applicable as of June 30, 2014). The Company pays commission of between 0.2% per annum to 2.0% 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-guarantees in its consolidated balance sheet as of June 30, 2014. The maximum potential amount that the Company could pay under these guarantees is ZAR 135.1 million ($12.8 million, translated at exchange rates applicable as of June 30, 2014). The guarantees have reduced the amount available for borrowings under the Company's short-term credit facility described in Note 12. | |||
Contingencies | |||
Securities Litigation | |||
On December 24, 2013, Net1, its chief executive officer and its chief financial officer were named as defendants in a purported class action lawsuit filed in the United States District Court for the Southern District of New York alleging violations of the federal securities laws. | |||
The lawsuit alleges that Net1 made materially false and misleading statements regarding its business and compliance policies in its SEC filings and other public disclosures. The lawsuit was brought on behalf of a purported shareholder of Net1 and all other similarly situated shareholders who purchased its securities between August 27, 2009 and November 27, 2013. The lawsuit seeks unspecified damages. The Company believes this lawsuit has no merit and intends to defend it vigorously. | |||
The Company is subject to a variety of insignificant claims and suits that arise from time to time in the ordinary course of business. | |||
Management currently believes that the resolution of these matters, individually or in the aggregate, will not have a material adverse impact on the Company's financial position, results of operations and cash flows. | |||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
25. RELATED PARTY TRANSACTIONS | |
As described in Note 3, on September 14, 2012, the Company acquired all of the outstanding and issued ordinary shares in N1MS. In 2010, the Company had engaged the services of N1MS to perform software development services, primarily software utilized on mobile phones and by cash-accepting kiosks. All software developed under this engagement became the Company's property. During the years ended June 30, 2013 and 2012, the Company recognized expenses of approximately $0.1 million and $0.8, respectively, for software development services provided by N1MS prior to it becoming a subsidiary of the Company. As of June 30, 2013, and since acquisition, the Company's has eliminated all intercompany balance sheet accounts with N1MS on consolidation. | |
Unaudited_Quartely_Results
Unaudited Quartely Results | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Unaudited Quarterly Results [Abstract] | ' | |||||||||||
Unaudited Quarterly Results | ' | |||||||||||
26. UNAUDITED QUARTERLY RESULTS | ||||||||||||
The following tables contain selected unaudited consolidated statements of operations information for each quarter of fiscal 2014 and 2013: | ||||||||||||
Three months ended | ||||||||||||
Year | ||||||||||||
ended | ||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | June 30, | ||||||||
2014 | 2014 | 2013 | 2013 | 2014 | ||||||||
(In thousands except per share data) | ||||||||||||
Revenue | $ | 182,753 | $ | 138,126 | $ | 137,283 | $ | 123,494 | $ | 581,656 | ||
Operating income | 42,647 | 23,949 | 18,802 | 16,400 | 101,798 | |||||||
Net income attributable to Net1 | $ | 28,584 | $ | 17,182 | $ | 12,749 | $ | 11,596 | $ | 70,111 | ||
Net income per share, in United States dollars | ||||||||||||
Basic earnings attributable to Net1 shareholders | $ | 0.59 | $ | 0.38 | $ | 0.28 | $ | 0.25 | $ | 1.51 | ||
Diluted earnings attributable to Net1 shareholders | $ | 0.58 | $ | 0.37 | $ | 0.28 | $ | 0.25 | $ | 1.5 | ||
Three months ended | ||||||||||||
Year | ||||||||||||
ended | ||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | June 30, | ||||||||
2013 | 2013 | 2012 | 2012 | 2013 | ||||||||
(In thousands except per share data) | ||||||||||||
Revenue | $ | 117,882 | $ | 111,141 | $ | 111,442 | $ | 111,682 | $ | 452,147 | ||
Operating (loss) income | 13,591 | (4,726 | ) | 4,972 | 9,325 | 23,162 | ||||||
Net income (loss) attributable to Net1 | $ | 8,285 | $ | (4,681 | ) | $ | 2,629 | $ | 6,744 | $ | 12,977 | |
Net income (loss per share, in United States dollars | ||||||||||||
Basic earnings (loss) attributable to Net1 shareholders | $ | 0.18 | $ | (0.10 | ) | $ | 0.06 | $ | 0.15 | $ | 0.28 | |
Diluted earnings (loss) attributable to Net1 shareholders | $ | 0.18 | $ | (0.10 | ) | $ | 0.06 | $ | 0.15 | $ | 0.28 |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
27. SUBSEQUENT EVENTS | |
On August 27, 2014, the Company entered into a sale and subscription agreement with Business Venture Investments No 1567 (Proprietary) Limited (RF) ("BVI"), one of the Company's BEE partners, in preparation for any new potential SASSA tender. Pursuant to the sale and subscription agreement: (i) the Company repurchased BVI's remaining 1,837,432, shares of the Company's common stock for approximately $9.2 million in cash (translated at exchange rates prevailing as of August 27, 2014) and (ii) BVI has subscribed for new ordinary shares of CPS representing approximately 12.5% of CPS' ordinary shares outstanding after the subscription for $1.4 million in cash (translated at exchange rates prevailing as of August 27, 2014). In connection with transactions described above, the CPS shareholder agreement that was negotiated as part of the original December 2013 Relationship Agreement became effective. | |
Significant_Accounting_Policie1
Significant Accounting Policies (Policy) | 12 Months Ended | |
Jun. 30, 2014 | ||
Significant Accounting Policies [Abstract] | ' | |
Principles Of Consolidation | ' | |
Principles of consolidation | ||
The financial statements of entities which are controlled by Net1, referred to as subsidiaries, are consolidated. Inter-company accounts and transactions are eliminated upon consolidation. | ||
The Company, if it is the primary beneficiary, consolidates entities which are considered to be variable interest entities ("VIE"). The primary beneficiary is considered to be the entity that will absorb a majority of the entity's expected losses, receive a majority of the entity's expected residual returns, or both. No entities were required to be consolidated in terms of these requirements during the years ended June 30, 2014, 2013 and 2012. | ||
Use Of Estimates | ' | |
Use of estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Translation Of Foreign Currencies | ' | |
Translation of foreign currencies | ||
The primary functional currency of the Company is the South African Rand ("ZAR") and its reporting currency is the US dollar. The Company also has consolidated entities which have other currencies, primarily South Korean won ("KRW"), as their functional currency. Assets and liabilities are translated at the exchange rates in effect at the balance sheet date. Revenues and expenses are translated at average rates for the period. Translation gains and losses are reported in accumulated other comprehensive income in total equity. | ||
Foreign exchange transactions are translated at the spot rate ruling at the date of the transaction. Monetary items are translated at the closing spot rate at the balance sheet date. Transactional gains and losses are recognized in selling, general and administration expense on the Company's consolidated statement of operations for the period. | ||
Loan Provisions And Allowance for Doubtful Accounts Receivable | ' | |
Allowance for doubtful accounts receivable | ||
Allowance for doubtful finance loans receivable | ||
The Company regularly reviews the ageing of outstanding amounts due from borrowers and adjusts the allowance based on management's estimate of the recoverability of the finance loans receivable. The Company writes off finance loans receivable and related service fees if a borrower is in arrears with repayments for more than three months or dies. | ||
Allowance for doubtful accounts receivable | ||
A specific provision is established where it is considered likely that all or a portion of the amount due from customers renting point of sale ("POS") equipment, receiving support and maintenance or transaction services or purchasing licenses from the Company will not be recovered. Non-recoverability is assessed based on a review by management of the ageing of outstanding amounts, the location of the customer and the payment history in relation to those specific amounts. | ||
Inventory | ' | |
Inventory | ||
Inventory is valued at the lower of cost and market value. Cost is determined on a first-in, first-out basis and includes transport and handling costs. | ||
Equity-Accounted Investments | ' | |
Equity-accounted investments | ||
The Company uses the equity method to account for investments in companies when it has significant influence but not control over the operations of the equity-accounted company. Under the equity method, the Company initially records the investment at cost and then adjusts the carrying value of the investment to recognize the proportional share of the equity-accounted company's net income or loss. The Company does not recognize cumulative losses in excess of its investment or loans in an equity-accounted investment except if it has an obligation to provide additional financial support. Dividends received from an equity-accounted investment reduce the carrying value of the Company's investment. | ||
Leasehold Improvement Costs | ' | |
Leasehold improvement costs | ||
Costs incurred in the adaptation of leased properties to serve the requirements of the Company are capitalized and amortized over the shorter of the estimated useful life of the asset and the remaining term of the lease. | ||
Property, Plant And Equipment | ' | |
Property, plant and equipment | ||
Property, plant and equipment are shown at cost less accumulated depreciation. Property, plant and equipment are depreciated on the straight-line basis at rates which are estimated to amortize the assets to their anticipated residual values over their useful lives. Within the following asset classifications, the expected economic lives are approximately: | ||
Computer equipment | 3to 5 years | |
Office equipment | 2 to 10 years | |
Vehicles | 4 to 8 years | |
Furniture and fittings | 5 to 10 years | |
Plant and equipment | 5 to 10 years | |
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in income. | ||
Goodwill | ' | |
Goodwill | ||
Goodwill represents the excess of the purchase price of an acquired enterprise over the fair values of the identifiable assets acquired and liabilities assumed. The Company tests for impairment of goodwill on an annual basis and at any other time if events or circumstances change that would more likely than not reduce the fair value of the reporting unit goodwill below its carrying amount. | ||
Circumstances that could trigger an impairment test include but are not limited to: a significant adverse change in the business climate or legal factors; an adverse action or assessment by a regulator; unanticipated competition; loss of key personnel; the likelihood that a reporting unit or significant portion of a reporting unit will be sold or otherwise disposed; and results of testing for recoverability of a significant asset group within a reporting unit. | ||
If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recorded in the statement of operations. Measurement of the fair value of a reporting unit is based on one or more of the following fair value measures: the amount at which the unit as a whole could be bought or sold in a current transaction between willing parties; present value techniques of estimated future cash flows; or valuation techniques based on multiples of earnings or revenue, or a similar performance measure. | ||
Intangible Assets | ' | |
Intangible assets | ||
Intangible assets are shown at cost less accumulated amortization. Intangible assets are amortized over the following useful lives: | ||
Customer relationships | 1 to 15 years | |
Software and unpatented technology | 3 to 5 years | |
FTS patent | 10 years | |
Exclusive licenses | 7 years | |
Trademarks | 3 to 20 years | |
Customer databases | 3 years | |
Intangible assets are periodically evaluated for recoverability, and those evaluations take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. | ||
Policy Reserves And Liabilities | ' | |
Policy reserves and liabilities | ||
Reserves for future policy benefits and claims payable | ||
The Company determines its reserves for future policy benefits under its life insurance products using the financial soundness valuation method and assumptions as of the issue date as to mortality, interest, persistency and expenses plus provisions for adverse deviations. | ||
Deposits on investment contracts | ||
For the Company's interest-sensitive life contracts, liabilities approximate the policyholder's account value. For deferred annuities, the fixed option on variable annuities, guaranteed investment contracts and other investment contracts, the liability is the policyholder's account value. | ||
Reinsurance Contracts Held | ' | |
Reinsurance contracts held | ||
The Company enters into reinsurance contracts with reinsurers under which the Company is compensated for the entire amount or a portion of losses arising on one or more of the insurance contracts it issues. | ||
The expected benefits to which the Company is entitled under its reinsurance contracts held are recognized as reinsurance assets. These assets consist of short-term balances due from reinsurers (classified within accounts receivable, net) as well as long-term receivables (classified within other long-term assets) that are dependent on the present value of expected claims and benefits arising net of expected premiums payable under the related reinsurance contracts. Amounts recoverable from or due to reinsurers are measured consistently with the amounts associated with the reinsured contracts and in accordance with the terms of each reinsurance contract. | ||
Reinsurance assets are assessed for impairment at each balance sheet date. If there is reliable objective evidence that amounts due may not be recoverable, the Company reduces the carrying amount of the reinsurance asset to its recoverable amount and recognizes that impairment loss in its condensed consolidated statement of operations. | ||
Reinsurance premiums are recognized when due for payment under each reinsurance contract. | ||
Sales Tax | ' | |
Sales taxes | ||
Revenue and expenses are presented net of sales, use and value added taxes, as the case may be. | ||
Revenue Recognition | ' | |
Revenue recognition | ||
The Company recognizes revenue when: | ||
there is persuasive evidence of an agreement or arrangement; | ||
delivery of products has occurred or services have been rendered; | ||
the seller's price to the buyer is fixed or determinable; and | ||
collectability is reasonably assured. | ||
Fees | ' | |
Fees | ||
Pension and welfare and South African participating merchants | ||
The Company provides a welfare benefit distribution service to the South Africa Social Security Agency. Fee income received for these services is recognized in the statement of operations when distributions have been made to the recipient cardholders. | ||
Recipient cardholders are able to load their welfare grants at merchants enrolled in the Company's participating merchant system in certain provinces. There is no charge to the recipient cardholders to load the grant onto a smart card at the merchant location, however, a fee is charged to the merchant for purchases made at the merchant using the smart card. A fee is also charged to the merchant when the recipient cardholders makes a cash withdrawal. Fee income received for these services is recognized in the statement of operations when the transaction occurs. | ||
Card VAN, banking VAN and payment gateway | ||
Card VAN services consist of services relating to authorization of credit card transactions including transmission of transaction details ("authorization service"), and collection of receipts associated with the credit card transactions ("collection service"). With its authorization service, the Company connects credit card companies with merchants online when a customer uses his/her credit card via terminals installed at merchants' sites and the Company's central processing server for approval of credit card transactions. Immediately after approval of credit card transactions, the Company transmits details of the transactions to credit card companies online for processing payments. Collection service captures the transaction data and gathers receipts as documented evidence and provides them to credit card companies upon request. The Company earns service fees based on the number of transactions processed for credit card companies when services are rendered in accordance with the contracts entered into between credit card companies and the Company. The Company bills for its service charges to credit card companies each month. Each service could be provided either individually or collectively, based on terms of contracts. | ||
The Company charges commission fees to credit card companies for the authorization service provided based on the number of approvals transferred. The right to receive a service fee is due once a credit card transaction has been approved and details of the transaction are transmitted by the Company. Therefore, revenues from the authorization service are recognized when the credit card transactions are authorized and details of the transactions are transmitted. The Company earns a collection service fee once it has provided settled funds to the credit card companies. Therefore, revenue from the collection service is recognized when the Company collects the receipts and provides them to the card companies. | ||
For multiple-element arrangements, the Company has identified two deliverables. The first deliverable is the authorization service, and the second deliverable is the collection service. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value and there are no customer-negotiated refunds or return rights for the delivered elements. If the arrangement includes a customer-negotiated refund or return right relative to the delivered item and the delivery and performance of the undelivered item is considered probable and substantially in the Company's control, the delivered element constitutes a separate unit of accounting. In instances when the aforementioned criteria are not met, the deliverable is combined with the undelivered elements and the allocation of the arrangement consideration and revenue recognition is determined for the combined unit as single unit. Allocation of the consideration is determined at arrangement inception on the basis of each unit's relative selling price In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value ("VSOE"), (ii) third-party evidence of selling price ("TPE"), and (iii) best estimate of the selling price ("ESP"). | ||
VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. ESPs reflect the Company's best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. Because the Company has neither VSOE nor TPE for the two deliverables, the allocation of revenue has been based on the Company's ESPs. Amounts allocated to the authorization and the collection service are recognized at the time of service provided, the other conditions for revenue recognition have been met. | ||
The Company's process for determining its ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. Key factors considered by the Company in developing the ESPs include prices charged by the Company, historical pricing practices and controls, range of prices for various customers and the nature of the services. Consideration is also given to market conditions such as competitor pricing strategies and market perception. | ||
Banking VAN is a division supporting a company's fund management business (large payment transfers, collections, etc.) by relaying financial transactions between client companies and financial institutions. Financial transactions between two or more business enterprises, or between business enterprises and their customers, are conducted through the transaction-processing network established between the Company and the banks. Revenue from the banking VAN service is recognized when the service is rendered by the Company. | ||
With its PG service, the Company provides the Internet-based settlement service between an on-line shopping mall and a credit card company when a customer uses his/her credit card, debit card or on-line payment to pay for goods or services. The Company receives fees for carrying out settlements for electronic transactions. Revenue from the PG service is recognized when the service is rendered by the Company. | ||
Microlending service fee | ||
The Company provides short-term loans to customers in South Africa and charges and recognizes monthly service fee revenue over the term of the loan. The monthly service fee amount is fixed upon initiation and does not change over the term of the loan. | ||
Other fees and commissions | ||
The Company provides an automated payment collection service to third parties, for which it charges monthly fees. These fees are recognized in the statement of operations as the underlying services are performed. | ||
The Company provides medical-related claims adjudication, reconciliation and settlement services ("medical-related claim service") to customers, for which it charges fees. These fees are recognized in the statement of operations as the underlying services are performed. The Company sells prepaid electricity and recognizes a commission in its statement of operations once the prepaid electricity token has been delivered to the customer. | ||
Contract Variations Fees | ' | |
Contract variations fees | ||
The Company records additional revenue from variations to contracts for the provision of welfare benefits, if: | ||
there is persuasive evidence of an agreement; | ||
collectability is reasonably assured; and | ||
all material terms and conditions of the agreement have been adhered to. | ||
Hardware And Prepaid Airtime Voucher Sales | ' | |
Hardware and prepaid airtime voucher sales | ||
Revenue from hardware and airtime voucher sales is recognized when risk of loss has transferred to the customer and there are no unfulfilled Company obligations that affect the customer's final acceptance of the arrangement. Any cost of warranties and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenue is recognized. | ||
The Company buys terminals from manufacturers, and subsequently sells them through its agencies. Revenue is recognized when significant risks and rewards of ownership of terminals have passed to the buyer, usually on delivery of the terminals to the buyer. | ||
To the extent that sales of hardware are made in an arrangement that includes software that is more than incidental, the Company considers post-contract maintenance and technical support or other future obligations which could impact the timing and amount of revenue recognized. | ||
Software | ' | |
Software | ||
Revenue from licensed software is recognized on a subscription basis over the period that the client is entitled to use the license. Revenue from the sale of software is recognized if all revenue recognition criteria have been met. Post-contract maintenance and technical support in respect of software is generally negotiated and sold as a separate service and is recognized over the period such items are delivered. | ||
System Implementation Projects | ' | |
Systems implementation projects | ||
The Company undertakes smart card system implementation projects. The hardware and software installed in these projects are in the form of customized systems, which ordinarily involve modification to meet the customer's specifications. Software delivered under such arrangements is available to the customer permanently, subject to the payment of annual license fees. Revenue for such arrangements is recognized under the percentage of completion method, save for annual license fees, which are recognized in the period to which they relate. Up-front and interim payments received are recorded as client deposits until customer acceptance. | ||
The Company's customer arrangements may have multiple deliverables. Generally, the Company's multiple element arrangements fall within the scope of specific accounting standards that provide guidance regarding the separation of elements in multiple-deliverable arrangements and the allocation of consideration among those elements. If not, the Company unbundles multiple element arrangements into separate units of accounting when the delivered element(s) has stand-alone value and fair value of the undelivered element(s) exists. | ||
Terminal Rental Income | ' | |
Terminal rental income | ||
The Company leases terminals to merchants participating in its merchant acquiring system. Operating rental income is recognized monthly on a straight-line basis in accordance with the lease agreement. | ||
Other Income | ' | |
Other income | ||
Revenue from service and maintenance activities is charged to customers on a time-and-materials basis and is recognized in the statement of operations as services are delivered to customers. | ||
Research And Development Expenditure | ' | |
Research and development expenditure | ||
Research and development expenditures is charged to net income in the period in which it is incurred. During the years ended June 30, 2013, 2012 and 2011, the Company incurred research and development expenditures of $2.2 million, $1.3 million and $3.9 million, respectively. | ||
Computer Software Development | ' | |
Computer software development | ||
Product development costs in respect of software intended for sale to licensees are expensed as incurred until technological feasibility is attained. Technological feasibility is attained when the Company's software has completed system testing and has been determined to be viable for its intended use. The time between the attainment of technological feasibility and completion of software development is generally short with immaterial amounts of development costs incurred during this period. | ||
Costs in respect of the development of software for the Company's internal use are expensed as incurred, except to the extent that these costs are incurred during the application development stage. All other costs including those incurred in the project development and post-implementation stages are expensed as incurred. | ||
Income Taxes | ' | |
Income taxes | ||
The Company provides for income taxes using the asset and liability method. This approach recognizes the amount of taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequence of events recognized in the financial statements and tax returns. Deferred income taxes are adjusted to reflect the effects of changes in tax laws or enacted tax rates. | ||
The Company measured its South African income taxes and deferred income taxes for the years ended June 30, 2014, 2013 and 2012, using the enacted statutory tax rate in South Africa of 28%. On December 20, 2011, there was a change in South African tax law to impose a dividends withholding tax (a tax levied and withheld by a company on distributions to its shareholders) to replace the Secondary Taxation on Companies (a tax levied directly on a company on dividend distributions) ("STC"). The change was effective on April 1, 2012. | ||
As of June 30, 2014, the Company intends to permanently reinvest its non-US undistributed earnings of $356.5 million in those non-US jurisdictions. Accordingly, the Company has not recognized a deferred tax liability related to future distributions of these undistributed earnings. It is not practicable for the Company to estimate the amount of unrecognized deferred tax liability because of the complexities of the calculations involved. The Company will be required to record a tax charge if it is no longer able to permanently reinvest its undistributed earnings. This may result in an increase in the Company's effective tax rate in future periods. | ||
In establishing the appropriate deferred tax asset valuation allowances, the Company assesses the realizability of its deferred tax assets, and based on all available evidence, both positive and negative, determines whether it is more likely than not that the deferred tax assets or a portion thereof will be realized. | ||
Reserves for uncertain tax positions are recognized in the financial statements for positions which are not considered more likely than not of being sustained based on the technical merits of the position on audit by the tax authorities. For positions that meet the more likely than not standard, the measurement of the tax benefit recognized in the financial statements is based upon the largest amount of tax benefit that, in management's judgement, is greater than 50% likely of being realized based on a cumulative probability assessment of the possible outcomes. | ||
The Company's policy is to include interest related to unrecognized tax benefits in interest expense and penalties in selling, general and administration in the consolidated statements of operations. | ||
Stock-Based Compensation | ' | |
Stock-based compensation | ||
Stock-based compensation represents the cost related to stock-based awards granted. The Company measures equity-based stock-based compensation cost at the grant date, based on the estimated fair value of the award, and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period. In respect of awards with only service conditions that have a graded vesting schedule, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. The forfeiture rate is estimated using historical trends of the number of awards forfeited prior to vesting. The expense is recorded in the statement of operations and classified based on the recipients' respective functions. | ||
The Company records deferred tax assets for awards that result in deductions on the Company's income tax returns, based on the amount of compensation cost recognized and the Company's statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the Company's income tax return are recorded in additional paid-in capital (if the tax deduction exceeds the deferred tax asset) or in the statement of operations (if the deferred tax asset exceeds the tax deduction and no additional paid-in capital exists from previous awards). | ||
Equity Instruments Issued To Third Parties | ' | |
Equity instruments issued to third parties | ||
Equity instruments issued to third parties represents the cost related to equity instruments granted. The Company measures this cost at the grant date, based on the estimated fair value of the award, and recognizes the cost as an expense on a straight-line basis (net of estimated forfeitures) over the requisite service period. The forfeiture rate is estimated based on the Company's expectation of the number of awards that will be forfeited prior to vesting. | ||
The Company records deferred tax assets for equity instrument awards that result in deductions on the Company's income tax returns, based on the amount of equity instrument cost recognized and the Company's statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the Company's income tax return are recorded in the statement of operations. | ||
Settlement Assets And Settlement Obligations | ' | |
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 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 and (3) as of June 30, 2013, cash received from healthcare plans which the Company disburses to healthcare service providers once it adjudicates claims. | ||
Settlement obligations comprise (1) amounts that the Company is obligated to disburse to recipient cardholders of social welfare grants, (2) amounts that the Company is obligated to pay to customer employees, payroll-related payees and other payees designated by the customer and (3) as of June 30, 2013, amounts which are due to healthcare service providers after claims have been adjudicated and reconciled, provided that the Company shall have previously received such funds from healthcare plan customers. | ||
The balances at each reporting date may vary widely depending on the timing of the receipts and payments of these assets and obligations. | ||
Recent Accounting Pronouncements | ' | |
Recent accounting pronouncements adopted | ||
The following summary of recent accounting pronouncements reflects only the new authoritative accounting guidance issued that is relevant and applicable to the Company. | ||
In February 2013, the FASB issued guidance regarding Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance requires entities to present (either on the face of the statement of operations or in the notes) the effects on the line items of the statement of operations for amounts reclassified out of accumulated other comprehensive income. The guidance is effective for the Company beginning July 1, 2013 and is applied prospectively. The adoption of this guidance did not have a material impact on the Company's financial statements. | ||
Recent accounting pronouncements not yet adopted as of June 30, 2014 | ||
In March 2013, the FASB issued guidance regarding Parent's Accounting for the Cumulative Translation Adjustment Upon Derecognition of Certain Subsidiaries or Groups of Assets Within a Foreign Entity or of an Investment in a Foreign Entity. This guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective for the Company beginning July 1, 2014. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its financial statements on adoption. | ||
In May 2014, the FASB issued guidance regarding Revenue from Contracts with Customers. This guidance requires an entity to recognize revenue when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for the Company beginning July 1, 2017. Early adoption is not permitted. The Company expects that this guidance will have a material impact on its financial statements and is currently evaluating the impact of this guidance on its financial statements on adoption. | ||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |
Jun. 30, 2014 | ||
Significant Accounting Policies [Abstract] | ' | |
Schedule Of Property Plant And Equipment Expected Economic Lives | ' | |
Computer equipment | 3to 5 years | |
Office equipment | 2 to 10 years | |
Vehicles | 4 to 8 years | |
Furniture and fittings | 5 to 10 years | |
Plant and equipment | 5 to 10 years | |
Schedule Of Intangible Assets Useful Lives | ' | |
Customer relationships | 1 to 15 years | |
Software and unpatented technology | 3 to 5 years | |
FTS patent | 10 years | |
Exclusive licenses | 7 years | |
Trademarks | 3 to 20 years | |
Customer databases | 3 years |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Business Acquisition [Line Items] | ' | |||||||||
Schedule Of Cash Paid Net Of Cash Received Related To Company Acquisitions | ' | |||||||||
2014 | 2013 | 2012 | ||||||||
Net1 Mobile Solutions Proprietary Limited ("N1MS") (formerly Pbel) | $ | - | $ | 1,913 | $ | - | ||||
SmartSwitch Botswana (Proprietary) Limited ("SmartSwitch Botswana") | - | 230 | - | |||||||
The Smart Life Insurance Company Limited ("Smart Life") | - | - | 1,673 | |||||||
Prepaid business | - | - | 4,481 | |||||||
Total cash paid, net of cash received | $ | - | $ | 2,143 | $ | 6,154 | ||||
SmartSwitch Botswana And N1MS [Member] | ' | |||||||||
Business Acquisition [Line Items] | ' | |||||||||
Schedule Of Preliminary Purchase Price Allocation | ' | |||||||||
SmartSwitch | ||||||||||
Botswana | N1MS | Total | ||||||||
Cash and cash equivalents | $ | 584 | $ | 660 | $ | 1,244 | ||||
Accounts receivable, net | - | 234 | 234 | |||||||
Inventory | 150 | - | 150 | |||||||
Other current assets | - | - | - | |||||||
Property, plant and equipment, net | 472 | 92 | 564 | |||||||
Intangible assets (Note 9) | - | 1,785 | 1,785 | |||||||
Goodwill (Note 9) | 657 | 1,710 | 2,367 | |||||||
Other payables | (218 | ) | (65 | ) | (283 | ) | ||||
Income taxes payable | - | (93 | ) | (93 | ) | |||||
Deferred tax liabilities | (17 | ) | (494 | ) | (511 | ) | ||||
Fair value of assets and liabilities on acquisition | 1,628 | 3,829 | 5,457 | |||||||
Less: gain on re-measurement of previously held interest in | ||||||||||
SmartSwitch Botswana | (328 | ) | - | (328 | ) | |||||
Less: carrying value of SmartSwitch Botswana, an equity | ||||||||||
accounted investment, at the acquisition date | (486 | ) | - | (486 | ) | |||||
Total purchase price | $ | 814 | $ | 3,829 | $ | 4,643 | ||||
Prepaid Business And SmartLife [Member] | ' | |||||||||
Business Acquisition [Line Items] | ' | |||||||||
Schedule Of Preliminary Purchase Price Allocation | ' | |||||||||
Prepaid | Smart Life | Total | ||||||||
business | ||||||||||
Accounts receivable, net | $ | 1,083 | $ | 152 | $ | 1,235 | ||||
Inventory | 305 | - | 305 | |||||||
Customer relationships | 895 | - | 895 | |||||||
Software and unpatented technology | 2,449 | - | 2,449 | |||||||
Deferred tax liability | (251 | ) | - | (251 | ) | |||||
Cash and cash equivalents | - | 169 | 169 | |||||||
Financial investments (allocated to other long-term assets) | - | 3,059 | 3,059 | |||||||
Reinsurance assets (allocated to other long-term assets) | - | 28,492 | 28,492 | |||||||
Other payables | - | (185 | ) | (185 | ) | |||||
Policy holder liabilities (allocated to other long-term liabilities) | - | (29,845 | ) | (29,845 | ) | |||||
Total purchase price | $ | 4,481 | $ | 1,842 | $ | 6,323 |
Accounts_Receivable_Net_And_Fi1
Accounts Receivable, Net And Finance Loans Receivable, Net (Tables) | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Accounts Receivable, Net And Finance Loans Receivable, Net [Abstract] | ' | ||||||
Schedule Of Accounts Receivable | ' | ||||||
2014 | 2013 | ||||||
Accounts receivable, trade, net | $ | 64,885 | $ | 41,225 | |||
Accounts receivable, trade, gross | 66,198 | 45,926 | |||||
Allowance for doubtful accounts receivable, end of year | 1,313 | 4,701 | |||||
Beginning of year | 4,701 | 788 | |||||
Deconsolidation | (32 | ) | - | ||||
Reversed to statement of operations | (1,455 | ) | (93 | ) | |||
Charged to statement of operations | 714 | 4,622 | |||||
Utilized | (2,451 | ) | (5 | ) | |||
Foreign currency adjustment | (164 | ) | (611 | ) | |||
Cash payments to agents in South Korea that are amortized over the contract period | 46,591 | 32,412 | |||||
Other receivables | 36,591 | 28,977 | |||||
Total accounts receivable, net | $ | 148,067 | $ | 102,614 | |||
Schedule Of Finance Loans Receivable | ' | ||||||
2014 | 2013 | ||||||
Finance loans receivable, gross | $ | 56,207 | $ | 8,350 | |||
Allowance for doubtful finance loans receivable, end of year | 3,083 | - | |||||
Beginning of year | - | - | |||||
Charged to statement of operations | 3,652 | - | |||||
Utilized | (513 | ) | - | ||||
Foreign currency adjustment | (56 | ) | - | ||||
Total finance loans receivable, net | $ | 53,124 | $ | 8,350 |
Inventory_Tables
Inventory (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Inventory [Abstract] | ' | ||||
Schedule Of Inventory By Categories | ' | ||||
2014 | 2013 | ||||
Finished goods | $ | 10,785 | $ | 12,222 | |
$ | 10,785 | $ | 12,222 |
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Fair Value Of Financial Instruments [Abstract] | ' | ||||||||
Outstanding Foreign Exchange Contracts | ' | ||||||||
The Company's outstanding foreign exchange contracts are as follows: | |||||||||
As of June 30, 2014 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
EUR | 182,272.50 | ZAR | 15.2077 | ZAR | 14.5803 | 21-Jul-14 | |||
EUR | 182,272.50 | ZAR | 15.3488 | ZAR | 14.5803 | 21-Jul-14 | |||
EUR | 180,022.50 | ZAR | 15.4228 | ZAR | 14.6542 | 20-Aug-14 | |||
EUR | 180,022.50 | ZAR | 15.2819 | ZAR | 14.6542 | 20-Aug-14 | |||
EUR | 180,022.50 | ZAR | 15.3623 | ZAR | 14.7367 | 22-Sep-14 | |||
EUR | 180,022.50 | ZAR | 15.5041 | ZAR | 14.7367 | 22-Sep-14 | |||
EUR | 181,570.50 | ZAR | 15.5739 | ZAR | 14.8119 | 20-Oct-14 | |||
EUR | 181,570.50 | ZAR | 15.4316 | ZAR | 14.8119 | 20-Oct-14 | |||
EUR | 180,022.50 | ZAR | 15.6552 | ZAR | 14.8982 | 20-Nov-14 | |||
EUR | 180,022.50 | ZAR | 15.5136 | ZAR | 14.8982 | 20-Nov-14 | |||
EUR | 180,022.50 | ZAR | 15.597 | ZAR | 14.9874 | 22-Dec-14 | |||
EUR | 180,022.50 | ZAR | 15.7391 | ZAR | 14.9874 | 22-Dec-14 | |||
EUR | 174,424.50 | ZAR | 15.8119 | ZAR | 15.0671 | 20-Jan-15 | |||
EUR | 174,424.50 | ZAR | 15.6729 | ZAR | 15.0671 | 20-Jan-15 | |||
As of June 30, 2013 | |||||||||
Fair market | |||||||||
Notional amount | Strike price | value price | Maturity | ||||||
USD | 4,000,000 | ZAR | 9.06 | ZAR | 10.1397 | 30-Sep-13 | |||
Fair Value Of Assets And Liabilities Measured On Recurring Basis | ' | ||||||||
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2014, according to the fair value hierarchy: | |||||||||
Quoted | |||||||||
Price in | |||||||||
Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Assets | Inputs | Inputs | |||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||
Assets | |||||||||
Related to insurance business (included in | |||||||||
other long-term assets): | |||||||||
Cash and cash equivalents | $ | 1,800 | $ | - | $ | - | $ | 1,800 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 8,068 | 8,068 | |||||
Other | - | 47 | - | 47 | |||||
Total assets at fair value | $ | 1,800 | $ | 47 | $ | 8,068 | $ | 9,915 | |
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 164 | $ | - | $ | 164 | |
Total liabilities at fair value | $ | - | $ | 164 | $ | - | $ | 164 | |
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2013, according to the fair value hierarchy: | |||||||||
Quoted | |||||||||
Price in | |||||||||
Active | Significant | ||||||||
Markets for | Other | Significant | |||||||
Identical | Observable | Unobservable | |||||||
Assets | Inputs | Inputs | |||||||
(Level 1) | (Level 2) | (Level 3) | Total | ||||||
Assets | |||||||||
Related to insurance business (included in | |||||||||
other long-term assets): | |||||||||
Cash and cash equivalents | $ | 1,833 | $ | - | $ | - | $ | 1,833 | |
Investment in Finbond (available for sale | |||||||||
assets included in other long-term assets) | - | - | 8,303 | 8,303 | |||||
Other | - | 147 | - | 147 | |||||
Total assets at fair value | $ | 1,833 | $ | 147 | $ | 8,303 | $ | 10,283 | |
Liabilities | |||||||||
Foreign exchange contracts | $ | - | $ | 436 | $ | - | $ | 436 | |
Total liabilities at fair value | $ | - | $ | 436 | $ | - | $ | 436 | |
Property_Plant_And_Equipment_N1
Property, Plant And Equipment, Net (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Property, Plant And Equipment, Net [Abstract] | ' | ||||
Schedule Of Property Plant And Equipment Net | ' | ||||
2014 | 2013 | ||||
Cost: | |||||
Land | $ | 967 | $ | 858 | |
Building and structures | 530 | 471 | |||
Computer equipment | 110,393 | 101,536 | |||
Furniture and office equipment | 6,686 | 7,864 | |||
Motor vehicles | 20,575 | 22,127 | |||
Plant and equipment | 68 | 253 | |||
139,219 | 133,109 | ||||
Accumulated depreciation: | |||||
Land | - | - | |||
Building and structures | 128 | 92 | |||
Computer equipment | 73,908 | 69,573 | |||
Furniture and office equipment | 4,799 | 5,627 | |||
Motor vehicles | 12,519 | 9,263 | |||
Plant and equipment | 68 | 253 | |||
91,422 | 84,808 | ||||
Carrying amount: | |||||
Land | 967 | 858 | |||
Building and structures | 402 | 379 | |||
Computer equipment | 36,485 | 31,963 | |||
Furniture and office equipment | 1,887 | 2,237 | |||
Motor vehicles | 8,056 | 12,864 | |||
Plant and equipment | - | - | |||
$ | 47,797 | $ | 48,301 |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Goodwill And Intangible Assets, Net [Abstract] | ' | ||||||||||||||
Carrying Value Of Goodwill | ' | ||||||||||||||
Gross | Accumulated | Carrying | |||||||||||||
value | impairment | value | |||||||||||||
Balance as of July 1, 2011 | $ | 258,084 | $ | (48,514 | ) | $ | 209,570 | ||||||||
Reduction in goodwill: KSNET net settlement (Note 3) | (4,239 | ) | - | (4,239 | ) | ||||||||||
Foreign currency adjustment (1) | (28,957 | ) | 6,363 | (22,594 | ) | ||||||||||
Balance as of June 30, 2012 | 224,888 | (42,151 | ) | 182,737 | |||||||||||
Acquisition of N1MS (Note 3) | 1,710 | - | 1,710 | ||||||||||||
Acquisition of SmartSwitch Botswana (Note 3) | 657 | - | 657 | ||||||||||||
Foreign currency adjustment (1) | (8,697 | ) | (601 | ) | (9,298 | ) | |||||||||
Balance as of June 30, 2013 | 218,558 | (42,752 | ) | 175,806 | |||||||||||
Loss on liquidation of Net1 Universal Electronic | |||||||||||||||
Technologies (Austria) GmbH and associated entities ("Net1 | |||||||||||||||
UTA") (Note 19) | (44,445 | ) | 44,445 | - | |||||||||||
Foreign currency adjustment (1) | 12,463 | (1,693 | ) | 10,770 | |||||||||||
Balance as of June 30, 2014 | $ | 186,576 | $ | - | $ | 186,576 | |||||||||
(1) – the foreign currency adjustment represents the effects of the fluctuations between the South African rand and the South Korean won, and the US dollar on the carrying value. | |||||||||||||||
Goodwill Allocated To Reportable Segments | ' | ||||||||||||||
2014 | 2013 | ||||||||||||||
South African transaction processing | $ | 28,517 | $ | 30,525 | |||||||||||
International transaction processing | 128,427 | 113,972 | |||||||||||||
Financial inclusion and applied technologies | 29,632 | 31,309 | |||||||||||||
Total | $ | 186,576 | $ | 175,806 | |||||||||||
Carrying Value And Accumulated Amortization Of Intangible Assets | ' | ||||||||||||||
As of June 30, 2014 | As of June 30, 2013 | ||||||||||||||
Gross | Net | Gross | Net | ||||||||||||
carrying | Accumulated | carrying | carrying | Accumulated | carrying | ||||||||||
value | amortization | value | value | amortization | value | ||||||||||
Finite-lived intangible assets: | |||||||||||||||
Customer relationships | $ | 98,676 | $ | (41,273 | ) | $ | 57,403 | $ | 90,469 | $ | (29,818 | ) | $ | 60,651 | |
Software and unpatented | |||||||||||||||
technology | 33,604 | (26,207 | ) | 7,397 | 34,951 | (22,151 | ) | 12,800 | |||||||
FTS patent | 3,619 | (3,619 | ) | - | 3,873 | (3,873 | ) | - | |||||||
Exclusive licenses | 4,506 | (4,506 | ) | - | 4,506 | (4,506 | ) | - | |||||||
Trademarks | 6,890 | (3,176 | ) | 3,714 | 6,611 | (2,805 | ) | 3,806 | |||||||
Customer database | - | - | - | 614 | (614 | ) | - | ||||||||
Total finite-lived intangible assets | $ | 147,295 | $ | (78,781 | ) | $ | 68,514 | $ | 141,024 | $ | (63,767 | ) | $ | 77,257 | |
Future Estimated Annual Amortization Expense | ' | ||||||||||||||
2015 | $ | 15,831 | |||||||||||||
2016 | 11,838 | ||||||||||||||
2017 | 9,421 | ||||||||||||||
2018 | 9,421 | ||||||||||||||
2019 | 9,074 | ||||||||||||||
Thereafter | $ | 12,624 |
Reinsurance_Assets_And_Policy_1
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Tables) | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ' | ||||||
Summary Of The Movement In Reinsurance Assets And Policy Holder Liabilities Under Insurance Contracts | ' | ||||||
Reinsurance | Insurance | ||||||
assets (1) | contracts (2) | ||||||
Balances acquired on July 1, 2012 | $ | 23,595 | $ | (23,701 | ) | ||
Claims and policyholders' benefits under insurance contracts | (211 | ) | 146 | ||||
Foreign currency adjustment (3) | (3,827 | ) | 3,844 | ||||
Balance as of June 30, 2013 | 19,557 | (19,711 | ) | ||||
Claims and policyholders' benefits under insurance contracts | 2,790 | (3,063 | ) | ||||
Foreign currency adjustment (3) | (1,285 | ) | 1,296 | ||||
Balance as of June 30, 2014 | $ | 21,062 | $ | (21,478 | ) | ||
(1) Included in other long-term assets; | |||||||
(2) Included in other long-term liabilities; | |||||||
(3) The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar. | |||||||
Summary Of Movement In Assets And Policy Holder Liabilities Under Investment Contracts | ' | ||||||
Investment | |||||||
Assets (1) | contracts (2) | ||||||
Balances acquired on July 1, 2012 | $ | 1,109 | $ | (1,109 | ) | ||
Foreign currency adjustment (3) | (156 | ) | 156 | ||||
Balance as of June 30, 2013 | 953 | (953 | ) | ||||
Maturity claims under investment contracts | (202 | ) | 202 | ||||
Foreign currency adjustment (3) | (63 | ) | 63 | ||||
Balance as of June 30, 2014 | $ | 688 | $ | (688 | ) | ||
(1) Included in other long-term assets; | |||||||
(2) Included in other long-term liabilities; | |||||||
(3) The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar. | |||||||
Other_Payables_Tables
Other Payables (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Other Payables [Abstract] | ' | ||||
Schedule Of Other Payables | ' | ||||
2014 | 2013 | ||||
Participating merchants settlement obligation | $ | 2,118 | $ | 2,005 | |
Payroll-related payables | 991 | 1,611 | |||
Accruals | 10,704 | 10,522 | |||
Value-added tax payable | 3,477 | 2,560 | |||
Other | 7,027 | 7,009 | |||
Provisions | 17,940 | 10,101 | |||
$ | 42,257 | $ | 33,808 |
Common_Stock_Tables
Common Stock (Tables) | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Common Stock [Abstract] | ' | |||
Number Of Shares, Net Of Treasury | ' | |||
2014 | 2013 | 2012 | ||
Number of shares, net of treasury: | ||||
Statement of changes in equity | 47,819,299 | 45,592,550 | 45,548,902 | |
Less: Non-vested equity shares that have not vested as of end of | ||||
year (Note 18) | 385,778 | 405,226 | 646,617 | |
Number of shares, net of treasury excluding non-vested | ||||
equity shares that have not vested | 47,433,521 | 45,187,324 | 44,902,285 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Accumulated Other Comprehensive (Loss) Income [Abstract] | ' | |||||||||
Changes In Accumulated Other Comprehensive (Loss) Income | ' | |||||||||
Accumulated | ||||||||||
Net | ||||||||||
unrealized | ||||||||||
Accumulated | income (loss) | |||||||||
Foreign | on asset | |||||||||
currency | available for | |||||||||
translation | sale, net of | |||||||||
reserve | tax | Total | ||||||||
'000 | '000 | '000 | ||||||||
Balance as of July 1, 2011 | $ | (31,647 | ) | $ | (2,132 | ) | $ | (33,779 | ) | |
Movement in foreign currency translation reserve | (43,490 | ) | - | (43,490 | ) | |||||
Unrealized loss on asset available for sale, net of tax of $602 . | - | 1,547 | 1,547 | |||||||
Balance as of June 30, 2012 | (75,137 | ) | (585 | ) | (75,722 | ) | ||||
Movement in foreign currency translation reserve | (26,051 | ) | - | (26,051 | ) | |||||
Unrealized loss on asset available for sale, net of tax of $356 . | - | 915 | 915 | |||||||
Balance as of June 30, 2013 | (101,188 | ) | 330 | (100,858 | ) | |||||
Movement in foreign currency translation reserve | 13,552 | - | 13,552 | |||||||
Release of foreign currency translation reserve related to sale/ | ||||||||||
liquidation of businesses | 4,277 | - | 4,277 | |||||||
Unrealized loss on asset available for sale, net of tax of $112 . | - | 288 | 288 | |||||||
Balance as of June 30, 2014 | $ | (83,359 | ) | $ | 618 | $ | (82,741 | ) |
Revenue_Tables
Revenue (Tables) | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Revenue [Abstract] | ' | ||||||
Schedule Of Revenue | ' | ||||||
2014 | 2013 | 2012 | |||||
Services rendered – comprising mainly fees and commissions | $ | 518,297 | $ | 430,268 | $ | 362,679 | |
Loan-based fees received | 33,560 | 6,613 | 8,433 | ||||
Sale of goods – comprising mainly hardware and software sales | 29,799 | 15,266 | 19,152 | ||||
$ | 581,656 | $ | 452,147 | $ | 390,264 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||
Range Of Assumptions Used To Value Options Granted | ' | |||||||||
2014 | 2013 | 2012 | ||||||||
Expected volatility | 50% | 49% | 37% - 39% | |||||||
Expected dividends | 0% | 0% | 0% | |||||||
Expected life (in years) | 3 | 3 | 3 | |||||||
Risk-free rate | 0.90% | 0.30% | 1.9% - 0.9% | |||||||
Summarized Stock Option Activity | ' | |||||||||
The following table summarizes stock option activity for the years ended June 30, 2014, 2013 and 2012: | ||||||||||
Weighted | ||||||||||
Average | Weighted | |||||||||
Weighted | Remaining | Aggregate | Average | |||||||
average | Contractual | Intrinsic | Grant | |||||||
Number of | exercise | Term | Value | Date Fair | ||||||
shares | price ($) | (in years) | ($'000) | Value ($) | ||||||
Outstanding – July 1, 2011 | 2,120,656 | 18.44 | 6.82 | 243 | ||||||
Granted under Plan: August 2011 | 165,000 | 6.59 | 10 | 297 | 1.8 | |||||
Granted under Plan: October 2011 | 202,000 | 7.98 | 10 | 442 | 2.19 | |||||
Forfeitures | (240,073 | ) | 21.68 | - | ||||||
Outstanding – June 30, 2012 | 2,247,583 | 16.28 | 6.43 | 602 | - | |||||
Granted under Plan: August 2012 | 431,000 | 8.75 | 10 | 1,249 | 2.9 | |||||
Exercised | (30,000 | ) | 7.98 | 24 | ||||||
Outstanding – June 30, 2013 | 2,648,583 | 15.15 | 5.98 | 313 | ||||||
Granted under Plan: August 2013 | 224,896 | 7.35 | 10 | 568 | 2.53 | |||||
Exercised | (26,667 | ) | 7 | 91 | ||||||
Forfeited | (136,420 | ) | 23.51 | - | ||||||
Outstanding – June 30, 2014 | 2,710,392 | 14.16 | 5.38 | 3,909 | ||||||
The following table presents stock options vesting and expecting to vest as of June 30, 2014: | ||||||||||
Weighted | ||||||||||
Weighted | Average | |||||||||
average | Remaining | Aggregate | ||||||||
exercise | Contractual | Intrinsic | ||||||||
Number of | price | Term | Value | |||||||
shares | ($) | (in years) | ($'000) | |||||||
Vested and expecting to vest | ||||||||||
– June 30, 2014 | 2,710,392 | 14.16 | 5.38 | 3,909 | ||||||
These options have an exercise price range of $6.59 to $24.46. | ||||||||||
The following table presents stock options that are exercisable as of June 30, 2014: | ||||||||||
Weighted | ||||||||||
Average | ||||||||||
Weighted | Remaining | Aggregate | ||||||||
average | Contractual | Intrinsic | ||||||||
Number of | exercise | Term | Value | |||||||
shares | price ($) | (in years) | ($'000) | |||||||
Exercisable – June 30, 2014 | 2,085,830 | 16.01 | 4.54 | 1,789 | ||||||
Restricted Stock Activity | ' | |||||||||
Weighted | ||||||||||
Number of | Average | |||||||||
Shares of | Grant Date | |||||||||
Restricted | Fair Value | |||||||||
Stock | ($'000) | |||||||||
Non-vested – July 1, 2011 | 103,672 | |||||||||
Granted – August 2011 | 30,155 | 199 | ||||||||
Granted – February 2012 | 550,000 | 6,111 | ||||||||
Granted – May 2012 | 2,574 | 23 | ||||||||
Vested - August 2011 | (6,141 | ) | 40 | |||||||
Vested - November 2011 | (27,667 | ) | 209 | |||||||
Total vested | (33,808 | ) | ||||||||
Forfeitures | (5,976 | ) | 50 | |||||||
Non-vested – June 30, 2012 | 646,617 | 7,061 | ||||||||
Granted – August 2012 | 21,569 | 189 | ||||||||
Vested – August 2012 | (23,436 | ) | 216 | |||||||
Vested – February 2013 | (183,333 | ) | 1,016 | |||||||
Vested – May 2013 | (858 | ) | 7 | |||||||
Total vested | (207,627 | ) | ||||||||
Forfeitures | (55,333 | ) | 407 | |||||||
Non-vested – June 30, 2013 | 405,226 | 4,393 | ||||||||
Granted – August 2013 | 187,963 | 1,382 | ||||||||
Vested – August 2013 | (16,907 | ) | 161 | |||||||
Vested – February 2014 | (183,333 | ) | 1,742 | |||||||
Total vested | (200,240 | ) | ||||||||
Forfeitures | (7,171 | ) | 84 | |||||||
Non-vested – June 30, 2014 | 385,778 | 3,534 | ||||||||
Recorded Net Stock Compensation Charge | ' | |||||||||
Allocated to | ||||||||||
cost of goods | ||||||||||
sold, IT | Allocated to | |||||||||
Total | processing, | selling, | ||||||||
charge | servicing | general and | ||||||||
(reversal) | and support | administration | ||||||||
Year ended June 30, 2014 | ||||||||||
Stock-based compensation charge | $ | 3,724 | $ | - | $ | 3,724 | ||||
Reversal of stock compensation charge related to restricted stock | ||||||||||
forfeited | (6 | ) | - | (6 | ) | |||||
Total – year ended June 30, 2014 | $ | 3,718 | $ | - | $ | 3,718 | ||||
Year ended June 30, 2013 | ||||||||||
Stock-based compensation charge | $ | 4,387 | $ | - | $ | 4,387 | ||||
Reversal of stock compensation charge related to restricted stock | ||||||||||
forfeited | (480 | ) | - | (480 | ) | |||||
Total – year ended June 30, 2013 | $ | 3,907 | $ | - | $ | 3,907 | ||||
Year ended June 30, 2012 | ||||||||||
Stock-based compensation charge | $ | 2,909 | $ | - | $ | 2,909 | ||||
Reversal of stock compensation charge related to options | ||||||||||
forfeited | (134 | ) | - | (134 | ) | |||||
Total – year ended June 30, 2012 | $ | 2,775 | $ | - | $ | 2,775 |
Deconsolidation_Of_Businesses_1
Deconsolidation Of Businesses Sold Or Liquidated And Disposal Of Business (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Deconsolidation Of Businesses Sold Or Liquidated And Disposal Of Business [Abstract] | ' | |||||||
Profit (Loss) On Deconsolidation Of Businesses Sold Or Liquidated And Disposal Of Business | ' | |||||||
2014 | 2013 | 2012 | ||||||
Profit on sale of MediKredit Integrated Healthcare Solutions Proprietary Limited | ||||||||
("MediKredit") | $ | 4,125 | $ | - | $ | - | ||
Profit on disposal of assets related to the business of Net 1 Universal Electronic | ||||||||
Technological Solutions (Pty) Ltd ("NUETS business") | 2,081 | - | - | |||||
Loss on liquidation of Net1 UTA | (6,261 | ) | - | - | ||||
Profit on liquidation of SmartSwitch Nigeria | - | - | 3,994 | |||||
Net profit (loss) for the year ended June 30, | $ | (55 | ) | $ | - | $ | 3,994 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||||||||
Components Of Income Before Income Taxes | ' | ||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
South Africa | $ | 121,338 | $ | 38,654 | $ | 67,054 | |||||||||||||
United States | (9,923 | ) | (10,075 | ) | (6,340 | ) | |||||||||||||
Other | (2,273 | ) | (1,300 | ) | (333 | ) | |||||||||||||
Income before income taxes | $ | 109,142 | $ | 27,279 | $ | 60,381 | |||||||||||||
Provision For Income Taxes By Location Of Taxing Jurisdiction | ' | ||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Current income tax | $ | 61,902 | $ | 33,968 | $ | 49,092 | |||||||||||||
South Africa | 41,326 | 15,418 | 26,787 | ||||||||||||||||
United States | 14,838 | 16,061 | 20,746 | ||||||||||||||||
Other | 5,738 | 2,489 | 1,559 | ||||||||||||||||
Deferred taxation (benefit) charge | (7,887 | ) | (4,915 | ) | (4,598 | ) | |||||||||||||
South Africa | (3,345 | ) | (2,037 | ) | (2,941 | ) | |||||||||||||
United States | (107 | ) | (331 | ) | 31 | ||||||||||||||
Other | (4,435 | ) | (2,547 | ) | (1,688 | ) | |||||||||||||
Capital gains tax | 202 | 7 | 1,465 | ||||||||||||||||
Secondary taxation on companies | - | - | 327 | ||||||||||||||||
Change in tax rate | - | - | (18,315 | ) | |||||||||||||||
Foreign tax credits generated – United States | (14,838 | ) | (14,404 | ) | (12,035 | ) | |||||||||||||
Income tax provision | $ | 39,379 | $ | 14,656 | $ | 15,936 | |||||||||||||
Reconciliation Of Income Taxes | ' | ||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Income tax rate reconciliation: | |||||||||||||||||||
Income taxes at fully-distributed South African tax rates | 28 | % | 28 | % | 28 | % | |||||||||||||
Non-deductible items | 4.71 | % | 6.78 | % | 6.6 | % | |||||||||||||
Foreign tax rate differential | 1.89 | % | 10.39 | % | 7.22 | % | |||||||||||||
Foreign tax credits | (13.59 | %) | (52.80 | %) | (21.12 | %) | |||||||||||||
Taxation on deemed dividends in the United States | 13.46 | % | 57.32 | % | 31.29 | % | |||||||||||||
Capital gains tax paid | 0.19 | % | 0.03 | % | 2.43 | % | |||||||||||||
Secondary taxation on companies | - | % | - | % | 0.54 | % | |||||||||||||
Movement in valuation allowance | 1.23 | % | 9.4 | % | 1.23 | % | |||||||||||||
Prior year adjustments | 0.19 | % | (5.39 | %) | 0.53 | % | |||||||||||||
Change in tax law | - | % | - | % | (30.33 | %) | |||||||||||||
Income tax provision | 36.08 | % | 53.73 | % | 26.39 | % | |||||||||||||
Schedule Of Deferred Tax Assets And Liabilities | ' | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Total deferred tax assets | |||||||||||||||||||
Net operating loss carryforwards | $ | 1,901 | $ | 12,024 | |||||||||||||||
Provisions and accruals | 5,470 | 3,164 | |||||||||||||||||
FTS patent | 909 | 1,088 | |||||||||||||||||
Intangible assets | 123 | 17,150 | |||||||||||||||||
Foreign tax credits | 23,338 | 24,637 | |||||||||||||||||
Other | 7,765 | 5,537 | |||||||||||||||||
Total deferred tax assets before valuation allowance | 39,506 | 63,600 | |||||||||||||||||
Valuation allowances | (25,153 | ) | (54,117 | ) | |||||||||||||||
Total deferred tax assets, net of valuation allowance | 14,353 | 9,483 | |||||||||||||||||
Total deferred tax liabilities: | |||||||||||||||||||
Intangible assets | 16,600 | 18,729 | |||||||||||||||||
Other | 5,824 | 4,543 | |||||||||||||||||
Total deferred tax liabilities | 22,424 | 23,272 | |||||||||||||||||
Reported as | |||||||||||||||||||
Current deferred tax assets | 7,451 | 4,938 | |||||||||||||||||
Long term deferred tax liabilities | 15,522 | 18,727 | |||||||||||||||||
Net deferred income tax liabilities | $ | 8,071 | $ | 13,789 | |||||||||||||||
Movement In Valuation Allowance | ' | ||||||||||||||||||
Net | |||||||||||||||||||
Foreign | Tax | operating | |||||||||||||||||
tax | deductible | loss carry- | FTS | ||||||||||||||||
Total | credits | goodwill | forwards | patent | Other | ||||||||||||||
1-Jul-12 | $ | 47,496 | $ | 19,089 | $ | 17,985 | $ | 9,560 | $ | 660 | $ | 202 | |||||||
Reversed to statement of operations | - | - | - | - | - | - | |||||||||||||
Charged to statement of operations | 8,201 | 5,547 | - | 2,621 | - | 33 | |||||||||||||
Utilized | (1,733 | ) | - | (1,643 | ) | - | (90 | ) | - | ||||||||||
Foreign currency adjustment | 153 | - | 615 | (367 | ) | (96 | ) | 1 | |||||||||||
30-Jun-13 | 54,117 | 24,636 | 16,957 | 11,814 | 474 | 236 | |||||||||||||
Reversed to statement of operations | (1,412 | ) | (1,412 | ) | - | - | - | - | |||||||||||
Charged to statement of operations | 1,442 | 113 | - | 1,329 | - | - | |||||||||||||
Utilized | (26,698 | ) | - | (17,682 | ) | (9,016 | ) | - | - | ||||||||||
Deconsolidation | (3,075 | ) | - | - | (3,075 | ) | - | - | |||||||||||
Foreign currency adjustment | 779 | - | 725 | 192 | (105 | ) | (33 | ) | |||||||||||
30-Jun-14 | $ | 25,153 | $ | 23,337 | $ | - | $ | 1,244 | $ | 369 | $ | 203 | |||||||
Schedule Of Operating Loss Carryforwards | ' | ||||||||||||||||||
Year of expiration | US net | ||||||||||||||||||
operating loss | |||||||||||||||||||
carry | |||||||||||||||||||
forwards | |||||||||||||||||||
2024 | $ | 3,340 | |||||||||||||||||
Schedule Of Reconciliation Of Total Amounts Of Unrecognized Tax Benefits | ' | ||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Unrecognized tax benefits - opening balance | $ | 1,150 | $ | 1,314 | $ | 2,664 | |||||||||||||
Gross decreases - tax positions in prior periods | - | (170 | ) | (1,159 | ) | ||||||||||||||
Gross increases - tax positions in current period | 38 | 216 | 97 | ||||||||||||||||
Lapse of statute limitations | - | - | - | ||||||||||||||||
Foreign currency adjustment | (28 | ) | (210 | ) | (288 | ) | |||||||||||||
Unrecognized tax benefits - closing balance | $ | 1,160 | $ | 1,150 | $ | 1,314 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Income From Continuing Operations And Share Data Used In Basic And Diluted Earnings Per Share Computations | ' | |||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands except percent and | ||||||||||
per share data) | ||||||||||
Numerator: | ||||||||||
Net income attributable to Net1 | $ | 70,111 | $ | 12,977 | $ | 44,651 | ||||
Undistributed earnings | 70,111 | 12,977 | 44,651 | |||||||
Percent allocated to common shareholders (Calculation 1) | 99 | % | 99 | % | 99 | % | ||||
Numerator for earnings per share: basic and diluted | $ | 69,376 | $ | 12,836 | $ | 44,397 | ||||
Denominator: | ||||||||||
Denominator for basic earnings per share: weighted-average common | ||||||||||
shares outstanding | 45,997 | 45,057 | 44,930 | |||||||
Effect of dilutive securities: | ||||||||||
Performance shares related to acquisition | - | 95 | - | |||||||
Stock options | 119 | 30 | 45 | |||||||
Denominator for diluted earnings per share: adjusted weighted | ||||||||||
average common shares outstanding and assumed conversion | 46,116 | 45,182 | 44,975 | |||||||
Earnings per share: | ||||||||||
Basic | $ | 1.51 | $ | 0.28 | $ | 0.99 | ||||
Diluted | $ | 1.5 | $ | 0.28 | $ | 0.99 | ||||
(Calculation 1) | ||||||||||
Basic weighted-average common shares outstanding (A) | 45,997 | 45,057 | 44,930 | |||||||
Basic weighted-average common shares outstanding and unvested | ||||||||||
restricted shares expected to vest (B) | 46,484 | 45,553 | 45,187 | |||||||
Percent allocated to common shareholders (A) / (B) | 99 | % | 99 | % | 99 | % |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||
Schedule Of Supplemental Cash Flow Disclosures | ' | ||||||
2014 | 2013 | 2012 | |||||
Cash received from interest | $ | 14,703 | $ | 12,043 | $ | 9,180 | |
Cash paid for interest | $ | 6,969 | $ | 7,927 | $ | 9,773 | |
Cash paid for income taxes | $ | 42,417 | $ | 21,900 | $ | 30,704 | |
Cash Flow Movements If Cash Had Been Transferred | ' | ||||||
2014 | |||||||
Cash (used in ) provided by investing activities: | |||||||
Loans provided to BEE partners | ($ | 25,054 | ) | ||||
Loans repaid by BEE partners | $ | 24,574 | |||||
Cash provided by (used in) financing activities: | |||||||
Issue of shares of the Company's common stock to BEE partners | $ | 25,054 | |||||
Purchase of shares from BEE partners | ($ | 24,858 | ) |
Operating_Segments_Tables
Operating Segments (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Operating Segments [Abstract] | ' | |||||||||
Reconciliation Of Reportable Segments Revenue | ' | |||||||||
Revenue | ||||||||||
From | ||||||||||
Reportable | Inter- | external | ||||||||
Segment | segment | customers | ||||||||
South African transaction processing | $ | 261,577 | $ | 11,543 | $ | 250,034 | ||||
International transaction processing | 152,725 | - | 152,725 | |||||||
Financial inclusion and applied technologies | 207,595 | 28,698 | 178,897 | |||||||
Total for the year ended June 30, 2014 | 621,897 | 40,241 | 581,656 | |||||||
South African transaction processing | 242,739 | 495 | 242,244 | |||||||
International transaction processing | 135,954 | - | 135,954 | |||||||
Financial inclusion and applied technologies | 108,001 | 34,052 | 73,949 | |||||||
Total for the year ended June 30, 2013 | 486,694 | 34,547 | 452,147 | |||||||
South African transaction processing | 194,630 | 3,011 | 191,619 | |||||||
International transaction processing | 120,625 | - | 120,625 | |||||||
Financial inclusion and applied technologies | 90,792 | 12,772 | 78,020 | |||||||
Total for the year ended June 30, 2012 | $ | 406,047 | $ | 15,783 | $ | 390,264 | ||||
Reconciliation Of Reportable Segments Measure Of Profit Or Loss To Income | ' | |||||||||
For the years ended June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Reportable segments measure of profit or loss | $ | 144,038 | $ | 50,383 | $ | 94,439 | ||||
Operating income: Corporate/Eliminations | (42,240 | ) | (27,221 | ) | (33,289 | ) | ||||
Interest income | 14,817 | 12,083 | 8,576 | |||||||
Interest expense | (7,473 | ) | (7,966 | ) | (9,345 | ) | ||||
Income before income taxes | $ | 109,142 | $ | 27,279 | $ | 60,381 | ||||
Summary Of Segment Information | ' | |||||||||
For the years ended June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Revenues | ||||||||||
South African transaction processing | $ | 261,577 | $ | 242,739 | $ | 194,630 | ||||
International transaction processing | 152,725 | 135,954 | 120,625 | |||||||
Financial inclusion and applied technologies | 207,595 | 108,001 | 90,792 | |||||||
Total | 621,897 | 486,694 | 406,047 | |||||||
Operating income (loss) | ||||||||||
South African transaction processing | 61,401 | (21,316 | ) | 33,906 | ||||||
International transaction processing | 21,952 | 14,208 | 14,649 | |||||||
Financial inclusion and applied technologies | 60,685 | 57,491 | 45,884 | |||||||
Subtotal: Operating segments | 144,038 | 50,383 | 94,439 | |||||||
Corporate/Eliminations | (42,240 | ) | (27,221 | ) | (33,289 | ) | ||||
Total | 101,798 | 23,162 | 61,150 | |||||||
Depreciation and amortization | ||||||||||
South African transaction processing | 7,036 | 7,516 | 2,982 | |||||||
International transaction processing | 15,823 | 14,183 | 13,209 | |||||||
Financial inclusion and applied technologies | 874 | 678 | 751 | |||||||
Subtotal: Operating segments | 23,733 | 22,377 | 16,942 | |||||||
Corporate/Eliminations | 16,553 | 18,222 | 19,557 | |||||||
Total | 40,286 | 40,599 | 36,499 | |||||||
Expenditures for long-lived assets | ||||||||||
South African transaction processing | 3,425 | 9,400 | 23,332 | |||||||
International transaction processing | 19,393 | 12,490 | 14,994 | |||||||
Financial inclusion and applied technologies | 1,088 | 857 | 841 | |||||||
Subtotal: Operating segments | 23,906 | 22,747 | 39,167 | |||||||
Corporate/Eliminations | - | - | - | |||||||
Total | $ | 23,906 | $ | 22,747 | $ | 39,167 | ||||
Revenue Based On Geographic Location | ' | |||||||||
2014 | 2013 | 2012 | ||||||||
South Africa | $ | 428,931 | $ | 317,916 | $ | 272,063 | ||||
South Korea | 146,667 | 129,338 | 114,096 | |||||||
Rest of world | 6,058 | 4,893 | 4,105 | |||||||
Total | $ | 581,656 | $ | 452,147 | $ | 390,264 | ||||
Long-Lived Assets Based On Geographical Location | ' | |||||||||
Long-lived assets | ||||||||||
2014 | 2013 | 2012 | ||||||||
South Africa | $ | 105,627 | $ | 117,858 | $ | 140,308 | ||||
South Korea | 229,830 | 213,589 | 224,272 | |||||||
Rest of world | 6,593 | 7,676 | 6,911 | |||||||
Total | $ | 342,050 | $ | 339,123 | $ | 371,491 |
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | ||
Jun. 30, 2014 | |||
Commitments And Contingencies [Abstract] | ' | ||
Future Minimum Payments Under Operating Leases | ' | ||
Due within 1 year | $ | 3,490 | |
Due within 2 years | 2,608 | ||
Due within 3 years | 1,126 | ||
Due within 4 years | 363 | ||
Due within 5 years | $ | - |
Unaudited_Quartely_Results_Tab
Unaudited Quartely Results (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Unaudited Quarterly Results [Abstract] | ' | |||||||||||
Schedule Of Unaudited Consolidated Statements Of (Loss) Income | ' | |||||||||||
Three months ended | ||||||||||||
Year | ||||||||||||
ended | ||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | June 30, | ||||||||
2014 | 2014 | 2013 | 2013 | 2014 | ||||||||
(In thousands except per share data) | ||||||||||||
Revenue | $ | 182,753 | $ | 138,126 | $ | 137,283 | $ | 123,494 | $ | 581,656 | ||
Operating income | 42,647 | 23,949 | 18,802 | 16,400 | 101,798 | |||||||
Net income attributable to Net1 | $ | 28,584 | $ | 17,182 | $ | 12,749 | $ | 11,596 | $ | 70,111 | ||
Net income per share, in United States dollars | ||||||||||||
Basic earnings attributable to Net1 shareholders | $ | 0.59 | $ | 0.38 | $ | 0.28 | $ | 0.25 | $ | 1.51 | ||
Diluted earnings attributable to Net1 shareholders | $ | 0.58 | $ | 0.37 | $ | 0.28 | $ | 0.25 | $ | 1.5 | ||
Three months ended | ||||||||||||
Year | ||||||||||||
ended | ||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | June 30, | ||||||||
2013 | 2013 | 2012 | 2012 | 2013 | ||||||||
(In thousands except per share data) | ||||||||||||
Revenue | $ | 117,882 | $ | 111,141 | $ | 111,442 | $ | 111,682 | $ | 452,147 | ||
Operating (loss) income | 13,591 | (4,726 | ) | 4,972 | 9,325 | 23,162 | ||||||
Net income (loss) attributable to Net1 | $ | 8,285 | $ | (4,681 | ) | $ | 2,629 | $ | 6,744 | $ | 12,977 | |
Net income (loss per share, in United States dollars | ||||||||||||
Basic earnings (loss) attributable to Net1 shareholders | $ | 0.18 | $ | (0.10 | ) | $ | 0.06 | $ | 0.15 | $ | 0.28 | |
Diluted earnings (loss) attributable to Net1 shareholders | $ | 0.18 | $ | (0.10 | ) | $ | 0.06 | $ | 0.15 | $ | 0.28 |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
item | |||
contract | |||
Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of contracts in which reinsurers compensate losses arising on contracts it issues | 1 | ' | ' |
Number of deliverables identified for multiple element arrangements | 2 | ' | ' |
Research and development expenditures | $2.20 | $1.30 | $3.90 |
Income tax rate | 28.00% | ' | ' |
Undistributed earnings | $356.50 | ' | ' |
Minimum probability of tax benefit realization percentage | 50.00% | ' | ' |
FTS Patent [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortized useful lives of intangible assets | '10 years | ' | ' |
Exclusive Licenses [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortized useful lives of intangible assets | '7 years | ' | ' |
Customer Databases [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortized useful lives of intangible assets | '3 years | ' | ' |
Maximum [Member] | Customer Relationships [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortized useful lives of intangible assets | '15 years | ' | ' |
Maximum [Member] | Software And Unpatented Technology [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortized useful lives of intangible assets | '5 years | ' | ' |
Maximum [Member] | Trademarks [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortized useful lives of intangible assets | '20 years | ' | ' |
Minimum [Member] | Customer Relationships [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortized useful lives of intangible assets | '1 year | ' | ' |
Minimum [Member] | Software And Unpatented Technology [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortized useful lives of intangible assets | '3 years | ' | ' |
Minimum [Member] | Trademarks [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Amortized useful lives of intangible assets | '3 years | ' | ' |
Computer Equipment [Member] | Maximum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Expected economic lives of property, plant and equipment | '5 years | ' | ' |
Computer Equipment [Member] | Minimum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Expected economic lives of property, plant and equipment | '3 years | ' | ' |
Furniture And Office Equipment [Member] | Maximum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Expected economic lives of property, plant and equipment | '10 years | ' | ' |
Furniture And Office Equipment [Member] | Minimum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Expected economic lives of property, plant and equipment | '2 years | ' | ' |
Motor Vehicles [Member] | Maximum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Expected economic lives of property, plant and equipment | '8 years | ' | ' |
Motor Vehicles [Member] | Minimum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Expected economic lives of property, plant and equipment | '4 years | ' | ' |
Furniture and Fittings [Member] | Maximum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Expected economic lives of property, plant and equipment | '10 years | ' | ' |
Furniture and Fittings [Member] | Minimum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Expected economic lives of property, plant and equipment | '5 years | ' | ' |
Plant And Equipment [Member] | Maximum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Expected economic lives of property, plant and equipment | '10 years | ' | ' |
Plant And Equipment [Member] | Minimum [Member] | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Expected economic lives of property, plant and equipment | '5 years | ' | ' |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||
Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2011 | Dec. 31, 2011 | Oct. 29, 2010 | Oct. 29, 2010 | Jun. 30, 2014 | Jul. 01, 2011 | Sep. 14, 2012 | Sep. 14, 2012 | Sep. 14, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 01, 2011 | Jul. 01, 2011 | Jul. 01, 2011 | Nov. 30, 2011 | Jun. 30, 2014 | Dec. 07, 2012 | Dec. 07, 2012 | Sep. 14, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Oct. 03, 2011 | Jun. 30, 2014 | Sep. 14, 2012 | Jun. 30, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | KSNET [Member] | KSNET [Member] | KSNET [Member] | KSNET [Member] | Prepaid Business And SmartLife [Member] | Net1 Mobile Solutions [Member] | Net1 Mobile Solutions [Member] | Net1 Mobile Solutions [Member] | Net1 Mobile Solutions [Member] | Net1 Mobile Solutions [Member] | Prepaid Business [Member] | SmartLife [Member] | SmartLife [Member] | SmartLife [Member] | SmartLife [Member] | SmartSwitch Botswana [Member] | SmartSwitch Botswana [Member] | SmartSwitch Botswana [Member] | SmartSwitch Botswana [Member] | SmartSwitch Botswana [Member] | Eason & Son, Ltd [Member] | Eason & Son, Ltd [Member] | SmartSwitch Botswana And N1MS [Member] | SmartSwitch Botswana And N1MS [Member] | |
USD ($) | USD ($) | KRW | USD ($) | USD ($) | USD ($) | ZAR | ZAR | item | USD ($) | USD ($) | USD ($) | ZAR | USD ($) | USD ($) | BWP | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition date | ' | ' | ' | ' | ' | ' | ' | 29-Oct-10 | ' | ' | ' | ' | 14-Sep-12 | ' | ' | ' | ' | ' | 1-Jul-11 | ' | ' | ' | 7-Dec-12 | ' | ' | 3-Oct-11 | ' | ' |
Percentage acquired in acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, cost of acquired entity, cash paid | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | ' | ' | 23,000,000 | ' | ' | ' | ' | ' | 13,000,000 | ' | ' | $800,000 | 6,300,000 | ' | ' | ' | $4,500,000 | ' | ' | ' |
Cash received from acquisition | ' | ' | ' | ' | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of shares issued in acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued in acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 142,236 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, number of tranches | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, number of shares in each tranches | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,412 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, contributed revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' |
Business acquisition, contributed net loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' |
Consideration transferred | ' | ' | ' | ' | ' | 240,000,000 | 270,000,000,000 | ' | 6,323,000 | 3,829,000 | 33,000,000 | ' | ' | ' | 4,481,000 | 1,842,000 | ' | ' | ' | ' | ' | 814,000 | ' | ' | ' | ' | 4,643,000 | ' |
Percentage of business sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of business to strategic partner | 107,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on sale of subsidiary interest to strategic partner | 81,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition transaction-related expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 |
Difference between the fair value of consideration paid and the non-controlling interest adjusted amount | $224,888,000 | $186,576,000 | $218,558,000 | $258,084,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Schedule_Of_Cash_
Acquisitions (Schedule Of Cash Paid Net Of Cash Received Related To Company Acquisitions) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 |
Business Acquisition [Line Items] | ' | ' |
Total cash paid, net of cash received | $2,143 | $6,154 |
Net1 Mobile Solutions [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total cash paid, net of cash received | 1,913 | ' |
SmartSwitch Botswana [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total cash paid, net of cash received | 230 | ' |
SmartLife [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total cash paid, net of cash received | ' | 1,673 |
Prepaid Business [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total cash paid, net of cash received | ' | $4,481 |
Acquisitions_Schedule_Of_Preli
Acquisitions (Schedule Of Preliminary Purchase Price Allocation Translated At Applicable Foreign Exchange Rate) (Details) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jul. 01, 2011 | Jul. 01, 2011 | Jul. 01, 2011 | Jul. 01, 2011 | Jul. 01, 2011 | Jul. 01, 2011 | Sep. 14, 2012 | Sep. 14, 2012 | Sep. 14, 2012 | Sep. 14, 2012 | Sep. 14, 2012 | Sep. 14, 2012 | Sep. 14, 2012 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | Prepaid Business [Member] | Prepaid Business [Member] | SmartLife [Member] | SmartLife [Member] | Prepaid Business And SmartLife [Member] | Prepaid Business And SmartLife [Member] | SmartSwitch Botswana [Member] | SmartSwitch Botswana [Member] | Net1 Mobile Solutions [Member] | Net1 Mobile Solutions [Member] | Net1 Mobile Solutions [Member] | SmartSwitch Botswana And N1MS [Member] | SmartSwitch Botswana And N1MS [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ZAR | USD ($) | USD ($) | USD ($) | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | $169 | ' | $169 | ' | $584 | ' | ' | $660 | ' | $1,244 |
Accounts receivable, net | ' | ' | ' | ' | ' | 1,083 | ' | 152 | ' | 1,235 | ' | ' | ' | ' | 234 | ' | 234 |
Property, plant and equipment, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 472 | ' | ' | 92 | ' | 564 |
Inventory | ' | ' | ' | ' | ' | 305 | ' | ' | ' | 305 | ' | 150 | ' | ' | ' | ' | 150 |
Other current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 186,576 | 175,806 | 182,737 | 209,570 | ' | ' | ' | ' | ' | ' | ' | 657 | ' | ' | 1,710 | ' | 2,367 |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,785 | ' | 1,785 |
Customer relationships | ' | ' | ' | ' | ' | 895 | ' | ' | ' | 895 | ' | ' | ' | ' | ' | ' | ' |
Software and unpatented technology | ' | ' | ' | ' | ' | 2,449 | ' | ' | ' | 2,449 | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liabilities | ' | ' | ' | ' | ' | -251 | ' | ' | ' | -251 | ' | -17 | ' | ' | -494 | ' | -511 |
Financial investments (allocated to other long-term assets) | ' | ' | ' | ' | ' | ' | ' | 3,059 | ' | 3,059 | ' | ' | ' | ' | ' | ' | ' |
Reinsurance assets (allocated to other long-term assets) | ' | ' | ' | ' | ' | ' | ' | 28,492 | ' | 28,492 | ' | ' | ' | ' | ' | ' | ' |
Other payables | ' | ' | ' | ' | ' | ' | ' | -185 | ' | -185 | ' | -218 | ' | ' | -65 | ' | -283 |
Income taxes payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -93 | ' | -93 |
Policy holder liabilities (allocated to other long-term liabilities) | ' | ' | ' | ' | ' | ' | ' | -29,845 | ' | -29,845 | ' | ' | ' | ' | ' | ' | ' |
Fair value of assets and liabilities on acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,628 | ' | ' | 3,829 | ' | 5,457 |
Less: gain on re-measurement of previously held interest in SmartSwitch Botswana | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -328 | ' | ' | ' | ' | -328 | ' |
Less: carrying value of SmartSwitch Botswana, an equity-accounted investment at the acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -486 | ' | ' | ' | ' | -486 | ' |
Total purchase price | ' | ' | ' | ' | $4,481 | ' | $1,842 | ' | $6,323 | ' | $814 | ' | $3,829 | 33,000 | ' | $4,643 | ' |
Accounts_Receivable_Net_And_Fi2
Accounts Receivable, Net And Finance Loans Receivable, Net (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Accounts Receivable [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Bad debt expense | $0.60 | $0.40 | $0.20 |
Financing Loan Receivable [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Bad debt expense | $0 | $0.20 | $0.20 |
Accounts_Receivable_Net_And_Fi3
Accounts Receivable, Net And Finance Loans Receivable, Net (Schedule Of Accounts Receivable) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Accounts Receivable, Net And Finance Loans Receivable, Net [Abstract] | ' | ' |
Accounts receivable, trade, net | $64,885 | $41,225 |
Accounts receivable, trade, gross | 66,198 | 45,926 |
Allowance for doubtful accounts receivable, end of year | 1,313 | 4,701 |
Allowance for doubtful accounts receivable, beginning of year | 4,701 | 788 |
Deconsolidated | -32 | ' |
Reversed to statement of operations | -1,455 | -93 |
Charged to statement of operations | 714 | 4,622 |
Utilized | -2,451 | -5 |
Foreign currency adjustment | -164 | -611 |
Cash payments to agents in South Korea that are amortized over the contract period | 46,591 | 32,412 |
Other receivables | 36,591 | 28,977 |
Total accounts receivable, net | $148,067 | $102,614 |
Accounts_Receivable_Net_And_Fi4
Accounts Receivable, Net And Finance Loans Receivable, Net (Schedule Of Finance Loans Receivable) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Accounts Receivable, Net And Finance Loans Receivable, Net [Abstract] | ' | ' |
Finance loans receivable, gross | $56,207 | $8,350 |
Allowance for doubtful finance loans receivable, end of year | 3,083 | ' |
Charged to statement of operations | 3,652 | ' |
Utilized | -513 | ' |
Foreign currency adjustment | -56 | ' |
Accounts, Notes, Loans and Financing Receivable, Net, Current, Total | $53,124 | $8,350 |
Inventory_Details
Inventory (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Abstract] | ' | ' |
Finished goods | $10,785 | $12,222 |
Inventory | $10,785 | $12,222 |
Fair_Value_Of_Financial_Instru2
Fair Value Of Financial Instruments (Narrative) (Details) (USD $) | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2012 | |
Finbond [Member] | Finbond [Member] | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' |
Years of significant fluctuation of US Dollar to ZAR exchange rate | '3 years | ' | ' | ' |
Equity method investment, shares | ' | ' | 156,788,712 | ' |
Percentage of total assets represented by acquisition of share capital. | 1.00% | ' | ' | ' |
Equity method investment, additional shares | ' | ' | ' | 72,156,187 |
Equity method investment, additional shares acquisition value | ' | ' | ' | $1,000,000 |
Equity method investment, ownership percentage | ' | ' | 26.00% | ' |
Transfers in or out of Level 3 | 0 | 0 | ' | ' |
Impairment charges | $0 | $0 | ' | ' |
Fair_Value_Of_Financial_Instru3
Fair Value Of Financial Instruments (Outstanding Foreign Exchange Contracts) (Details) | 12 Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | ZAR | Foreign Exchange Contract 1 [Member] | Foreign Exchange Contract 1 [Member] | Foreign Exchange Contract 2 [Member] | Foreign Exchange Contract 2 [Member] | Foreign Exchange Contract 3 [Member] | Foreign Exchange Contract 3 [Member] | Foreign Exchange Contract 4 [Member] | Foreign Exchange Contract 4 [Member] | Foreign Exchange Contract 5 [Member] | Foreign Exchange Contract 5 [Member] | Foreign Exchange Contract 6 [Member] | Foreign Exchange Contract 6 [Member] | Foreign Exchange Contract 7 [Member] | Foreign Exchange Contract 7 [Member] | Foreign Exchange Contract 8 [Member] | Foreign Exchange Contract 8 [Member] | Foreign Exchange Contract 9 [Member] | Foreign Exchange Contract 9 [Member] | Foreign Exchange Contract 10 [Member] | Foreign Exchange Contract 10 [Member] | Foreign Exchange Contract 11 [Member] | Foreign Exchange Contract 11 [Member] | Foreign Exchange Contract 12 [Member] | Foreign Exchange Contract 12 [Member] | Foreign Exchange Contract 13 [Member] | Foreign Exchange Contract 13 [Member] | Foreign Exchange Contract 14 [Member] | Foreign Exchange Contract 14 [Member] | |
EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | EUR (€) | ZAR | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | $4,000,000,000 | ' | € 182,272.50 | ' | € 182,272.50 | ' | € 180,022.50 | ' | € 180,022.50 | ' | € 180,022.50 | ' | € 180,022.50 | ' | € 181,570.50 | ' | € 181,570.50 | ' | € 180,022.50 | ' | € 180,022.50 | ' | € 180,022.50 | ' | € 180,022.50 | ' | € 174,424.50 | ' | € 174,424.50 | ' |
Strike price (ZAR) | 9.06 | 9.06 | 15.2077 | 15.2077 | 15.3488 | 15.3488 | 15.4228 | 15.4228 | 15.2819 | 15.2819 | 15.3623 | 15.3623 | 15.5041 | 15.5041 | 15.5739 | 15.5739 | 15.4316 | 15.4316 | 15.6552 | 15.6552 | 15.5136 | 15.5136 | 15.597 | 15.597 | 15.7391 | 15.7391 | 15.8119 | 15.8119 | 15.6729 | 15.6729 |
Fair market value price (ZAR) | ' | 10.1397 | ' | 14.5803 | ' | 14.5803 | ' | 14.6542 | ' | 14.6542 | ' | 14.7367 | ' | 14.7367 | ' | 14.8119 | ' | 14.8119 | ' | 14.8982 | ' | 14.8982 | ' | 14.9874 | ' | 14.9874 | ' | 15.0671 | ' | 15.0671 |
Maturity | 30-Sep-13 | 30-Sep-13 | 21-Jul-14 | 21-Jul-14 | 21-Jul-14 | 21-Jul-14 | 20-Aug-14 | 20-Aug-14 | 20-Aug-14 | 20-Aug-14 | 22-Sep-14 | 22-Sep-14 | 22-Sep-14 | 22-Sep-14 | 20-Oct-14 | 20-Oct-14 | 20-Oct-14 | 20-Oct-14 | 20-Nov-14 | 20-Nov-14 | 20-Nov-14 | 20-Nov-14 | 22-Dec-14 | 22-Dec-14 | 22-Dec-14 | 22-Dec-14 | 20-Jan-15 | 20-Jan-15 | 20-Jan-15 | 20-Jan-15 |
Fair_Value_Of_Financial_Instru4
Fair Value Of Financial Instruments (Fair Value Of Assets And Liabilities Measured On Recurring Basis) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | $1,800 | $1,833 |
Investments in Finbond (available for sale assets included in other long-term assets) | 8,068 | 8,303 |
Other | 47 | 147 |
Total assets at fair value | 9,915 | 10,283 |
Foreign exchange contracts | 164 | 436 |
Total liabilities at fair value | 164 | 436 |
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 and cash equivalents | 1,800 | 1,833 |
Investments in Finbond (available for sale assets included in other long-term assets) | ' | ' |
Other | ' | ' |
Total assets at fair value | 1,800 | 1,833 |
Foreign exchange contracts | ' | ' |
Total liabilities at fair value | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other | 47 | 147 |
Total assets at fair value | 47 | 147 |
Foreign exchange contracts | 164 | 436 |
Total liabilities at fair value | 164 | 436 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments in Finbond (available for sale assets included in other long-term assets) | 8,068 | 8,303 |
Total assets at fair value | $8,068 | $8,303 |
Property_Plant_And_Equipment_N2
Property, Plant And Equipment, Net (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | $139,219 | $133,109 |
Accumulated depreciation | 91,422 | 84,808 |
Carrying amount | 47,797 | 48,301 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 967 | 858 |
Accumulated depreciation | ' | ' |
Carrying amount | 967 | 858 |
Building And Structures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 530 | 471 |
Accumulated depreciation | 128 | 92 |
Carrying amount | 402 | 379 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 110,393 | 101,536 |
Accumulated depreciation | 73,908 | 69,573 |
Carrying amount | 36,485 | 31,963 |
Furniture And Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 6,686 | 7,864 |
Accumulated depreciation | 4,799 | 5,627 |
Carrying amount | 1,887 | 2,237 |
Motor Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 20,575 | 22,127 |
Accumulated depreciation | 12,519 | 9,263 |
Carrying amount | 8,056 | 12,864 |
Plant And Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | 68 | 253 |
Accumulated depreciation | $68 | $253 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets, Net (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Goodwill And Intangible Assets, Net [Abstract] | ' | ' | ' |
Amortization expense charged | $16.60 | $18.20 | $19.40 |
Impairment of intangible asset | $0 | $0 | $0 |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets, Net (Carrying Value Of Goodwill) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
Goodwill [Line Items] | ' | ' | ' | |||
Gross value, Beginning Balance | $218,558 | $224,888 | $258,084 | |||
Gross value, Foreign currency adjustment | 12,463 | [1] | -8,697 | [1] | -28,957 | [1] |
Gross value, Ending Balance | 186,576 | 218,558 | 224,888 | |||
Accumulated impairment, Beginning Balance | -42,752 | -42,151 | -48,514 | |||
Accumulated impairment, Foreign currency adjustment | -1,693 | [1] | -601 | [1] | 6,363 | [1] |
Accumulated impairment, Ending Balance | ' | -42,752 | -42,151 | |||
Carrying value, Beginning Balance | 175,806 | 182,737 | 209,570 | |||
Carrying value, Foreign currency adjustment | 10,770 | [1] | -9,298 | [1] | -22,594 | [1] |
Carrying value, Ending Balance | 186,576 | 175,806 | 182,737 | |||
KSNET [Member] | ' | ' | ' | |||
Goodwill [Line Items] | ' | ' | ' | |||
Gross value, Reduction in goodwill related to net settlement (Note 3) | ' | ' | -4,239 | |||
Carrying value, Reduction in goodwill related to net settlement (Note 3) | ' | ' | -4,239 | |||
Net1 Mobile Solutions [Member] | ' | ' | ' | |||
Goodwill [Line Items] | ' | ' | ' | |||
Gross value, Acquisitions | ' | 1,710 | ' | |||
Carrying value, Acquisitions | ' | 1,710 | ' | |||
SmartSwitch Botswana [Member] | ' | ' | ' | |||
Goodwill [Line Items] | ' | ' | ' | |||
Gross value, Acquisitions | ' | 657 | ' | |||
Carrying value, Acquisitions | ' | 657 | ' | |||
Net1 UTA [Member] | ' | ' | ' | |||
Goodwill [Line Items] | ' | ' | ' | |||
Gross value, Loss on liquidation | -44,445 | ' | ' | |||
Accumulated Impairment, Loss on liquidation | $44,445 | ' | ' | |||
[1] | the foreign currency adjustment represents the effects of the fluctuations between the South African rand and the South Korean won, and the US dollar on the carrying value. |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets, Net (Goodwill Allocated To Reportable Segments) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 |
In Thousands, unless otherwise specified | ||||
Goodwill [Line Items] | ' | ' | ' | ' |
Total | $186,576 | $175,806 | $182,737 | $209,570 |
South African Transaction Processing [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Total | 28,517 | 30,525 | ' | ' |
International Transaction Processing [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Total | 128,427 | 113,972 | ' | ' |
Financial Inclusion And Applied Technology [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Total | $29,632 | $31,309 | ' | ' |
Goodwill_And_Intangible_Assets5
Goodwill And Intangible Assets, Net (Carrying Value And Accumulated Amortization Of Intangible Assets) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | $147,295 | $141,024 |
Accumulated amortization | -78,781 | -63,767 |
Net carrying value | 68,514 | 77,257 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 98,676 | 90,469 |
Accumulated amortization | -41,273 | -29,818 |
Net carrying value | 57,403 | 60,651 |
Software And Unpatented Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 33,604 | 34,951 |
Accumulated amortization | -26,207 | -22,151 |
Net carrying value | 7,397 | 12,800 |
FTS Patent [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 3,619 | 3,873 |
Accumulated amortization | -3,619 | -3,873 |
Exclusive Licenses [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 4,506 | 4,506 |
Accumulated amortization | -4,506 | -4,506 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 6,890 | 6,611 |
Accumulated amortization | -3,176 | -2,805 |
Net carrying value | 3,714 | 3,806 |
Customer Database [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | ' | 614 |
Accumulated amortization | ' | ($614) |
Goodwill_And_Intangible_Assets6
Goodwill And Intangible Assets, Net (Future Estimated Annual Amortization Expense) (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Goodwill And Intangible Assets, Net [Abstract] | ' |
2015 | $15,831 |
2016 | 11,838 |
2017 | 9,421 |
2018 | 9,421 |
2019 | 9,074 |
Thereafter | $12,624 |
Reinsurance_Assets_And_Policy_2
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ' |
Rate of real return basis, years | '10 years |
Allowance for salary inflation and book shrinkage, per annum | 1.00% |
Reinsurance_Assets_And_Policy_3
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Summary Of The Movement In Reinsurance Assets And Policy Holder Liabilities Under Insurance Contracts) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ' | ' | ||
Reinsurance assets, Beginning Balance | $19,557 | [1] | $23,595 | [1] |
Reinsurance assets, Claims and policyholders' benefits under insurance contracts | 2,790 | [1] | -211 | [1] |
Reinsurance assets, Foreign currency adjustment | -1,285 | [1],[2] | -3,827 | [1],[2] |
Reinsurance assets, Ending Balance | 21,062 | [1] | 19,557 | [1] |
Insurance contracts, Beginning Balance | -19,711 | [3] | -23,701 | [3] |
Insurance contracts, Claims and policyholders' benefits under insurance contracts | -3,063 | [3] | 146 | [3] |
Insurance contracts, Foreign currency adjustment | 1,296 | [2],[3] | 3,844 | [2],[3] |
Insurance contracts, Ending Balance | ($21,478) | [3] | ($19,711) | [3] |
[1] | Included in other long-term assets | |||
[2] | The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar | |||
[3] | Included in other long-term liabilities |
Reinsurance_Assets_And_Policy_4
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts (Summary Of Movement In Assets And Policy Holder Liabilities Under Investment Contracts) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Reinsurance Assets And Policy Holder Liabilities Under Insurance And Investment Contracts [Abstract] | ' | ' | ||
Assets, Beginning Balance | $953 | [1] | $1,109 | [1] |
Assets, Maturity claims under investment contracts | -202 | [1] | ' | |
Assets, Foreign currency adjustment | -63 | [1],[2] | -156 | [1],[2] |
Assets, Ending Balance | 688 | [1] | 953 | [1] |
Investment contracts, Beginning Balance | -953 | [3] | -1,109 | [3] |
Investment contracts, Maturity claims under investment contracts | 202 | [3] | ' | |
Investment contracts, Foreign currency adjustment | 63 | [2],[3] | 156 | [2],[3] |
Investment contracts, Ending Balance | ($688) | [3] | ($953) | [3] |
[1] | Included in other long-term assets | |||
[2] | The foreign currency adjustment represents the effects of the fluctuations between the ZAR against the US dollar | |||
[3] | Included in other long-term liabilities |
Other_Payables_Details
Other Payables (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Other Payables [Abstract] | ' | ' |
Participating merchants settlement obligation | $2,118 | $2,005 |
Payroll-related payables | 991 | 1,611 |
Accruals | 10,704 | 10,522 |
Value-added tax payable | 3,477 | 2,560 |
Other | 7,027 | 7,009 |
Provisions | 17,940 | 10,101 |
Other payables, total | $42,257 | $33,808 |
ShortTerm_Facilities_Details
Short-Term Facilities (Details) | 1 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Jul. 18, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 18, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Subsequent Event [Member] | South African Credit Facility [Member] | South African Credit Facility [Member] | Bank Overdrafts Facility [Member] | Bank Overdrafts Facility [Member] | Bank Overdrafts Facility [Member] | South Korea, Hana Bank Overdraft Facility [Member] | South Korea, Hana Bank Overdraft Facility [Member] | |
USD ($) | ZAR | USD ($) | ZAR | Subsequent Event [Member] | USD ($) | KRW | ||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | 150 | $23.60 | 250 | ' | $9.90 | 10 |
Short-term facility | ' | $13.10 | 139 | ' | ' | ' | ' | ' |
Overdraft rate | ' | ' | ' | ' | ' | ' | 4.98% | 4.98% |
Short term interest rate | ' | ' | ' | 7.85% | 7.85% | 8.10% | ' | ' |
Short term interest rate, increase | 0.25% | ' | ' | ' | ' | ' | ' | ' |
Commitment fee percentage | ' | ' | ' | 0.35% | 0.35% | ' | ' | ' |
LongTerm_Borrowings_Details
Long-Term Borrowings (Details) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
Oct. 29, 2013 | Oct. 29, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | KRW | USD ($) | USD ($) | USD ($) | Facility A [Member] | Facility A [Member] | Facility B [Member] | Facility B [Member] | Facility C [Member] | Facility C [Member] | Korean Senior Secured Loan Facility [Member] | Korean Senior Secured Loan Facility [Member] | Korean Senior Secured Loan Facility [Member] | Korean Senior Secured Loan Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Korean CD Rate [Member] | Final Installment [Member] | |
item | KRW | USD ($) | USD ($) | KRW | USD ($) | KRW | USD ($) | KRW | USD ($) | KRW | USD ($) | KRW | USD ($) | KRW | USD ($) | Facility A [Member] | ||||||
KRW | ||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | 60,000,000,000 | $59,200,000 | $14,800,000 | 15,000,000,000 | $9,900,000 | 10,000,000,000 | ' | ' | $87,000,000 | 92,400,000,000 | ' | ' | ' | ' | ' | ' | ' |
Number of facility agreements | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds drawn from facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,600,000 | 75,000,000,000 | ' | ' | 1,000,000 | 1,100,000,000 | 2,100,000 | 2,200,000,000 | ' | ' | ' |
Repayment of facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,400,000 | 17,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured loan facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 77,200,000 | ' | 77,200,000 | ' | ' |
Margin added on rate | ' | ' | ' | ' | ' | 3.10% | ' | 2.90% | 2.90% | 3.10% | 3.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CD interest rate at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.65% | ' |
Facilities interest rate at period end | ' | ' | ' | ' | ' | ' | 5.75% | 5.55% | 5.55% | 5.75% | 5.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Facility agreement, in years | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.30% | ' | ' |
Facilities fees paid | 900,000 | 900,000,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of fees | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | 4,800,000 | 7,100,000 | 8,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual installments | ' | ' | ' | ' | ' | 10,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000,000 |
Period before maturity date, prepayment of facility may be withdrawn (in months) | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common_Stock_Narrative_Details
Common Stock (Narrative) (Details) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
Jun. 05, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 06, 2014 | Apr. 16, 2014 | Dec. 06, 2013 | Dec. 06, 2013 | |
ZAR | USD ($) | ZAR | USD ($) | KSNET [Member] | Black Economic Empowerment [Member] | Black Economic Empowerment [Member] | Black Economic Empowerment [Member] | Black Economic Empowerment [Member] | Black Economic Empowerment [Member] | |
item | USD ($) | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | |||||
ZAR | ||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of votes per common share | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury shares acquired, value | ' | 24,858,000 | ' | 1,129,000 | ' | ' | ' | ' | ' | ' |
Treasury shares acquired, shares | ' | 2,428,122 | 2,428,122 | 180,656 | ' | ' | 2,400,000 | ' | ' | ' |
Number of shares, issued | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | 4,400,000 | ' |
Common stock price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 |
Calculated percentage of the closing price of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% |
Loan agreement term, in years | ' | '5 years | '5 years | ' | ' | '5 years | ' | ' | ' | ' |
Basis points added to rate | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' |
Percent of outstanding principal amount due for first and second payments | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Percent of outstanding principal amount due for third and fourth payments | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Share price benchmark, entire outstanding principal amount is required due | ' | ' | 120 | ' | ' | ' | ' | ' | ' | ' |
Share price benchmark, trigger event for repurchase of shares | ' | ' | 60 | ' | ' | ' | ' | ' | ' | ' |
Failed arbitration, trigger event, days | ' | '7 days | '7 days | ' | ' | ' | ' | ' | ' | ' |
Period of trading days to the trigger events | ' | '30 days | '30 days | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, cost of acquired entity, cash paid | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' |
Difference in amount, fair value of consideration paid and non-controlling interest adjustment | ' | ' | ' | ' | $1,500,000 | ' | ' | ' | ' | ' |
Common stock repurchase per share | 109.98 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted resale period from date of issuance | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' |
Common_Stock_Number_Of_Shares_
Common Stock (Number Of Shares, Net Of Treasury) (Details) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Common Stock [Abstract] | ' | ' | ' |
Number of shares, net of treasury | 47,819,299 | 45,592,550 | 45,548,902 |
Less: Non-vested equity shares that have not vested as of end of year (Note 18) | 385,778 | 405,226 | 646,617 |
Number of shares, net of treasury excluding non-vested equity shares that have not vested | 47,433,521 | 45,187,324 | 44,902,285 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) Income (Changes In Accumulated Other Comprehensive (Loss) Income ) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | ($100,858) | ($75,722) | ($33,779) |
Other comprehensive income, net of tax | 18,295 | -25,136 | -42,070 |
Ending Balance | -82,741 | -100,858 | -75,722 |
Reclassification from accumulated other comprehensive (loss) income | 0 | 0 | ' |
Release Of Foreign Currency Translation Reserve Related To Sale/Liquidation Of Businesses [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Other comprehensive income, net of tax | 4,277 | ' | ' |
Foreign Current Translation Reserve [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -101,188 | -75,137 | -31,647 |
Other comprehensive income, net of tax | 13,552 | -26,051 | -43,490 |
Ending Balance | -83,359 | -101,188 | -75,137 |
Foreign Current Translation Reserve [Member] | Release Of Foreign Currency Translation Reserve Related To Sale/Liquidation Of Businesses [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Other comprehensive income, net of tax | 4,277 | ' | ' |
Net Unrealized Income (Loss) On Asset Available For Sale, Net Of Tax [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 330 | -585 | -2,132 |
Other comprehensive income, net of tax | 288 | 915 | 1,547 |
Ending Balance | 618 | 330 | -585 |
Other comprehensive income (loss), tax | $112 | $356 | $602 |
Revenue_Details
Revenue (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Revenue [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Services rendered - comprising mainly fees and commissions | ' | ' | ' | ' | ' | ' | ' | ' | $518,297,000 | $430,268,000 | $362,679,000 |
Loan-based fees received | ' | ' | ' | ' | ' | ' | ' | ' | 33,560,000 | 6,613,000 | 8,433,000 |
Sale of goods - comprising mainly hardware and software sales | ' | ' | ' | ' | ' | ' | ' | ' | 29,799,000 | 15,266,000 | 19,152,000 |
REVENUE (Note 16) | 182,753,000 | 138,126,000 | 137,283,000 | 123,494,000 | 117,882,000 | 111,141,000 | 111,442,000 | 111,682,000 | 581,656,000 | 452,147,000 | 390,264,000 |
Service rendered, once off receipt related to the recovery of additional implementation costs | ' | ' | ' | ' | ' | ' | ' | ' | 26,600,000 | ' | ' |
Percentage of completion method, revenue recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 |
Equity_Instruments_Issued_Purs1
Equity Instruments Issued Pursuant To BEE Transactions (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 16, 2014 | Apr. 16, 2014 | Jun. 30, 2014 | Apr. 19, 2012 | Jun. 30, 2012 |
2014 Transaction [Member] | 2014 Transaction [Member] | 2014 Transaction [Member] | 2012 Transaction [Member] | 2012 Transaction [Member] | 2012 Transaction [Member] | ||
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of options issued | ' | ' | ' | ' | ' | 8,955,000 | ' |
Number of shares, issued | ' | ' | 4,400,000 | ' | ' | ' | ' |
Fair value of option | ' | ' | ' | $11.30 | ' | ' | $14.20 |
Expected volatility rate | 47.00% | 21.04% | ' | ' | ' | ' | ' |
Risk free rate | 0.90% | 7.90% | ' | ' | ' | ' | ' |
Expected term, in years | ' | '5 years | ' | ' | '1 year | ' | ' |
Estimated expected volatility calculation period, in days | ' | '30 days | ' | ' | '250 days | ' | ' |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
Nov. 10, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2012 | Aug. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 10, 2011 | Nov. 30, 2010 | Oct. 31, 2010 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Nov. 10, 2012 | Nov. 10, 2013 | |
Non-employee Directors [Member] | Non-employee Directors [Member] | Remuneration Committee Of The Board Agreed For Accelerated Vesting [Member] | Remuneration Committee Of The Board Agreed For Accelerated Vesting [Member] | Net1 UTA [Member] | Net1 UTA [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Stock Options [Member] | Stock Incentive Plan [Member] | November 10, 2012 [Member] | November 10, 2013 [Member] | |||||
employee | Restricted Stock [Member] | Restricted Stock [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of shares of common stock issuable under plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,552,580 | ' | ' |
Maximum number of shares for which awards may granted during calendar year to any participant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 569,120 | ' | ' |
Maximum number of shares subject to stock option awards that can be granted during calendar year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 569,120 | ' | ' |
Maximum amount that can be granted in calendar year awards other than stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000,000 | ' | ' |
Share based compensation options expiration period, in years | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' |
Period which shares may not be disposed of in any way, after restricted stock become vested and nonforfeited, in months | ' | '11 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards provided for vesting upon recipients continuous service through vesting date and company achieving financial performance target | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future awards provided for vesting upon recipients continuous service through vesting date and company achieving financial performance target, for November 10, 2012 and 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.33 | 0.33 |
Number of options issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,000 | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of executive officers that were approved for shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fundamental EPS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.90 | $1.60 | $1.44 | ' | ' | ' | ' |
Award shares vested percentage | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable stock options | ' | 462,333 | 442,666 | 300,000 | ' | ' | ' | 30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from exercise of stock options | ' | 200,000 | 200,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Non-vested equity shares that have not vested as of end of year (Note 18) | ' | 385,778 | 405,226 | 646,617 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation charge | ' | 3,718,000 | 3,907,000 | 2,775,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of restricted stock vested | ' | 1,900,000 | 1,200,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | 26,667 | 30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeitures, Number of shares | ' | 136,420 | ' | 240,073 | 7,171 | 5,976 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | 900,000 | ' | ' | ' |
Deferred tax asset | ' | ' | ' | ' | ' | ' | ' | ' | $1,600,000 | $1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, expected recognition period, years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | '2 years | ' | ' | ' |
Vested number of shares of restricted stock | ' | ' | ' | ' | ' | ' | 8,547 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Range_
Stock-Based Compensation (Range Of Assumptions Used To Value Options Granted) (Details) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | 50.00% | 49.00% | ' |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected life (in years) | '3 years | '3 years | '3 years |
Risk-free rate | 0.90% | 0.30% | ' |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | ' | ' | 39.00% |
Risk-free rate | ' | ' | 1.90% |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | ' | ' | 37.00% |
Risk-free rate | ' | ' | 0.90% |
StockBased_Compensation_Summar
Stock-Based Compensation (Summarized Stock Option Activity) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 | Oct. 31, 2011 | Aug. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 |
Stock-Based Compensation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, Number of shares, Beginning Balance | ' | ' | ' | ' | 2,648,583 | 2,247,583 | 2,120,656 | ' |
Exercised, Number of shares | ' | ' | ' | ' | -26,667 | -30,000 | ' | ' |
Granted under Plan, Number of shares | 224,896 | 431,000 | 202,000 | 165,000 | ' | ' | ' | ' |
Forfeitures, Number of shares | ' | ' | ' | ' | -136,420 | ' | -240,073 | ' |
Outstanding, Number of shares, Ending Balance | ' | ' | ' | ' | 2,710,392 | 2,648,583 | 2,247,583 | 2,120,656 |
Exercisable, Number of Shares | ' | ' | ' | ' | 2,085,830 | ' | ' | ' |
Vested and expecting to vest, Number of shares | ' | ' | ' | ' | 2,710,392 | ' | ' | ' |
Outstanding, Weighted average exercise price, Beginning Balance | ' | ' | ' | ' | $15.15 | $16.28 | $18.44 | ' |
Exercised, Weighted average exercise price | ' | ' | ' | ' | $7 | $7.98 | ' | ' |
Forfeitures, Weighted average exercise price | ' | ' | ' | ' | $23.51 | ' | $21.68 | ' |
Granted under Plan, Weighted average exercise price | $7.35 | $8.75 | $7.98 | $6.59 | ' | ' | ' | ' |
Outstanding, Weighted average exercise price, Ending Balance | ' | ' | ' | ' | $14.16 | $15.15 | $16.28 | $18.44 |
Exercisable, Weighted average exercise price | ' | ' | ' | ' | $16.01 | ' | ' | ' |
Vested and expecting to vest, Weighted average exercise price | ' | ' | ' | ' | $14.16 | ' | ' | ' |
Outstanding, Weighted Average Remaining Contractual Term (in years), Beginning Balance | ' | ' | ' | ' | '5 years 4 months 17 days | '5 years 11 months 23 days | '6 years 5 months 5 days | '6 years 9 months 26 days |
Granted under Plan, Weighted Average Remaining Contractual Term (in years) | '10 years | '10 years | '10 years | '10 years | ' | ' | ' | ' |
Outstanding, Weighted Average Remaining Contractual Term (in years), Ending Balance | ' | ' | ' | ' | '5 years 4 months 17 days | '5 years 11 months 23 days | '6 years 5 months 5 days | '6 years 9 months 26 days |
Exercisable, Weighted Average Remaining Contractual Term (in years) | ' | ' | ' | ' | '4 years 6 months 15 days | ' | ' | ' |
Vested and expecting to vest, Weighted Average Remaining Contractual Term (in years) | ' | ' | ' | ' | '5 years 4 months 17 days | ' | ' | ' |
Outstanding, Aggregate Intrinsic Value, Beginning Balance | ' | ' | ' | ' | $313 | $602 | $243 | ' |
Exercised, Aggregate Intrinsic Value | ' | ' | ' | ' | 91 | 24 | ' | ' |
Granted under Plan, Aggregate Intrinsic Value | 568 | 1,249 | 442 | 297 | ' | ' | ' | ' |
Outstanding, Aggregate Intrinsic Value, Ending Balance | ' | ' | ' | ' | 3,909 | 313 | 602 | 243 |
Exercisable, Aggregate Intrinsic Value | ' | ' | ' | ' | 1,789 | ' | ' | ' |
Vested and expecting to vest, Aggregate Intrinsic Value | ' | ' | ' | ' | $3,909 | ' | ' | ' |
Granted under Plan, Weighted Average Grant Date Fair Value | $2.53 | $2.90 | $2.19 | $1.80 | ' | ' | ' | ' |
Options exercise price range, lower limit | ' | ' | ' | ' | $6.59 | ' | ' | ' |
Options exercise price range, upper limit | ' | ' | ' | ' | $24.46 | ' | ' | ' |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Activity) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested, Number of Shares of Restricted Stock, Beginning Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 405,226 | ' | ' |
Forfeitures, Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -136,420 | ' | -240,073 |
Non-vested, Number of Shares of Restricted Stock, Ending Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 385,778 | ' | 646,617 |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested, Number of Shares of Restricted Stock, Beginning Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 405,226 | 646,617 | 103,672 |
Granted, Number of Shares of Restricted Stock | ' | 187,963 | ' | ' | 21,569 | 2,574 | 550,000 | ' | 30,155 | ' | ' | ' |
Vested, Number of Shares of Restricted Stock | -183,333 | -16,907 | -858 | -183,333 | -23,436 | ' | ' | -27,667 | -6,141 | -200,240 | -207,627 | -33,808 |
Forfeitures, Number of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7,171 | -55,333 | -5,976 |
Non-vested, Number of Shares of Restricted Stock, Ending Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 385,778 | 405,226 | 646,617 |
Non-vested, Weighted Average Grant Date Fair Value, Beginning Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,393 | $7,061 | ' |
Granted, Weighted Average Grant Date Fair Value | ' | 1,382 | ' | ' | 189 | 23 | 6,111 | ' | 199 | ' | ' | ' |
Vested, Weighted Average Grant Date Fair Value | 1,742 | 161 | 7 | 1,016 | 216 | ' | ' | 209 | 40 | ' | ' | ' |
Forfeitures, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84 | 407 | 50 |
Non-vested, Weighted Average Grant Date Fair Value, Ending Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,534 | $4,393 | $7,061 |
StockBased_Compensation_Record
Stock-Based Compensation (Recorded Net Stock Compensation Charge) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation charge | $3,724 | $4,387 | $2,909 |
Reversal of stock compensation charge related to restricted stock forfeited | -6 | -480 | ' |
Reversal of stock compensation charge related to options forfeited | ' | ' | -134 |
Total | 3,718 | 3,907 | 2,775 |
Allocated To Selling, General And Administration [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation charge | 3,724 | 4,387 | 2,909 |
Reversal of stock compensation charge related to restricted stock forfeited | -6 | -480 | ' |
Reversal of stock compensation charge related to options forfeited | ' | ' | -134 |
Total | $3,718 | $3,907 | $2,775 |
Deconsolidation_Of_Businesses_2
Deconsolidation Of Businesses Sold Or Liquidated And Disposal Of Business (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 2 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2012 | |
MediKredit [Member] | Net 1 Universal Electronic Technological Solutions [Member] | Net 1 Universal Electronic Technological Solutions [Member] | Net 1 Universal Electronic Technological Solutions [Member] | Net 1 Universal Electronic Technological Solutions [Member] | Net1 UTA [Member] | SmartSwitch Nigeria [Member] | |||
item | Subsequent Event [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profit on sale of business | ($55,000) | $3,994,000 | $4,125,000 | ' | ' | $2,081,000 | ' | ($6,261,000) | $3,994,000 |
Number of tranches, sale price received | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Percent of sales price received, reporting period | ' | ' | 57.00% | ' | ' | ' | ' | ' | ' |
Percent of sales price received, year 2 | ' | ' | 14.00% | ' | ' | ' | ' | ' | ' |
Threshold dollar amount of services provided before cost will be incurred | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' |
Gain from foreign currency transaction reserve | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Transaction-related expenditure | ' | ' | 10,000 | ' | ' | 60,000 | ' | ' | ' |
Cash received from sale of business | $186,000 | ' | ' | $200,000 | $2,200,000 | ' | $2,000,000 | ' | ' |
Deconsolidation_Of_Businesses_3
Deconsolidation Of Businesses Sold Or Liquidated And Disposal Of Business (Profit (Loss) On Deconsolidation Of Businesses Sold Or Liquidated And Disposal Of Business) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Profit on sale of business | ($55) | $3,994 |
MediKredit [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Profit on sale of business | 4,125 | ' |
Net 1 Universal Electronic Technological Solutions [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Profit on sale of business | 2,081 | ' |
Net1 UTA [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Profit on sale of business | -6,261 | ' |
SmartSwitch Nigeria [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Profit on sale of business | ' | $3,994 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2006 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | |
EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | MediKredit [Member] | Net1 UTA [Member] | Net1 UTA [Member] | Net1 UTA [Member] | Net 1 Austria [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||
Valuation Allowance [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -30.33% | ' | ' | ' | ' | ' |
Net deferred taxation benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,300,000 | ' | ' | ' | ' | ' |
Foreign tax credits, recorded as charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,200,000 | ' | ' | ' | ' | ' |
Operating loss | ' | -42,647,000 | -23,949,000 | -18,802,000 | -16,400,000 | -13,591,000 | 4,726,000 | -4,972,000 | -9,325,000 | -101,798,000 | -23,162,000 | -61,150,000 | ' | ' | ' | ' | ' |
License payment | 50,760,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized useful lives of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years |
Deferred tax assets | ' | 14,353,000 | ' | ' | ' | 9,483,000 | ' | ' | ' | 14,353,000 | 9,483,000 | ' | ' | 20,000 | 50,000 | 40,000 | ' |
Percent of goodwill recognized that can be deducted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% |
Unused foreign tax credits | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' |
Foreign tax credits expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
Valuation allowances | ' | 25,153,000 | ' | ' | ' | 54,117,000 | ' | ' | ' | 25,153,000 | 54,117,000 | ' | ' | 8,000,000 | ' | ' | 7,900,000 |
Valuation allowance related to net operating loss carryforwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | 8,900,000 | ' | ' | ' |
Unrecognized tax benefit | ' | 1,200,000 | ' | ' | ' | 1,200,000 | ' | ' | ' | 1,200,000 | 1,200,000 | ' | ' | ' | ' | ' | ' |
Accrued interest related to uncertain tax positions | ' | $200,000 | ' | ' | ' | $200,000 | ' | ' | ' | $200,000 | $200,000 | ' | ' | ' | ' | ' | ' |
Income_Taxes_Components_Of_Inc
Income Taxes (Components Of Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Tax [Line Items] | ' | ' | ' |
Income before income taxes | $109,142 | $27,279 | $60,381 |
South Africa [Member] | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Income before income taxes | 121,338 | 38,654 | 67,054 |
United States [Member] | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Income before income taxes | -9,923 | -10,075 | -6,340 |
Other [Member] | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Income before income taxes | ($2,273) | ($1,300) | ($333) |
Income_Taxes_Provisions_For_In
Income Taxes (Provisions For Income Taxes By Location Of Taxing Jurisdiction) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Tax [Line Items] | ' | ' | ' |
Current income tax | $61,902 | $33,968 | $49,092 |
Deferred taxation (benefit) charge | -7,887 | -4,915 | -4,598 |
Capital gains tax | 202 | 7 | 1,465 |
Secondary taxation on companies | ' | ' | 327 |
Changes in tax rate | ' | ' | -18,315 |
Foreign tax credits generated-United States | -14,838 | -14,404 | -12,035 |
INCOME TAX EXPENSE - (Note 11) | 39,379 | 14,656 | 15,936 |
South Africa [Member] | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Current income tax | 41,326 | 15,418 | 26,787 |
Deferred taxation (benefit) charge | -3,345 | -2,037 | -2,941 |
United States [Member] | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Current income tax | 14,838 | 16,061 | 20,746 |
Deferred taxation (benefit) charge | -107 | -331 | 31 |
Other [Member] | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Current income tax | 5,738 | 2,489 | 1,559 |
Deferred taxation (benefit) charge | ($4,435) | ($2,547) | ($1,688) |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Income Taxes) (Details) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Income Taxes [Abstract] | ' | ' | ' |
Income taxes at fully-distributed South African tax rate | 28.00% | 28.00% | 28.00% |
Non-deductible items | 4.71% | 6.78% | 6.60% |
Foreign tax rate differential | 1.89% | 10.39% | 7.22% |
Foreign tax credits | -13.59% | -52.80% | -21.12% |
Taxation on deemed dividends in United States | 13.46% | 57.32% | 31.29% |
Capital gains tax paid | 0.19% | 0.03% | 2.43% |
Secondary taxation on companies | ' | ' | 0.54% |
Movement in valuation allowance | 1.23% | 9.40% | 1.23% |
Prior year adjustments | 0.19% | -5.39% | 0.53% |
Change in tax law | ' | ' | -30.33% |
Income tax provision | 36.08% | 53.73% | 26.39% |
Income_Taxes_Schedule_Of_Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ' | ' |
Net operating loss carryforwards | $1,901 | $12,024 |
Provisions and accruals | 5,470 | 3,164 |
FTS patent | 909 | 1,088 |
Intangible assets | 123 | 17,150 |
Foreign tax credits | 23,338 | 24,637 |
Other | 7,765 | 5,537 |
Total deferred tax assets before valuation allowance | 39,506 | 63,600 |
Valuation allowances | -25,153 | -54,117 |
Total deferred tax assets, net of valuation allowance | 14,353 | 9,483 |
Intangible assets | 16,600 | 18,729 |
Other | 5,824 | 4,543 |
Total deferred tax liabilities | 22,424 | 23,272 |
Current deferred tax assets | 7,451 | 4,938 |
Long term deferred tax liabilities | 15,522 | 18,727 |
Net deferred income tax liabilities | $8,071 | $13,789 |
Income_Taxes_Movement_In_Valua
Income Taxes (Movement In Valuation Allowance) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Valuation Allowances, Balance, Beginning Balance | $54,117 | $47,496 |
Reversed to statement of operations | -1,412 | ' |
Charged to statement of operations | 1,442 | 8,201 |
Utilized | -26,698 | -1,733 |
Deconsolidation | -3,075 | ' |
Foreign currency adjustment | 779 | 153 |
Valuation Allowances, Balance, Ending Balance | 25,153 | 54,117 |
Foreign Tax Credits [Member] | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Valuation Allowances, Balance, Beginning Balance | 24,636 | 19,089 |
Reversed to statement of operations | -1,412 | ' |
Charged to statement of operations | 113 | 5,547 |
Valuation Allowances, Balance, Ending Balance | 23,337 | 24,636 |
Tax Deductible Goodwill [Member] | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Valuation Allowances, Balance, Beginning Balance | 16,957 | 17,985 |
Utilized | -17,682 | -1,643 |
Foreign currency adjustment | 725 | 615 |
Valuation Allowances, Balance, Ending Balance | ' | 16,957 |
Net Operating Loss Carry-forwards [Member] | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Valuation Allowances, Balance, Beginning Balance | 11,814 | 9,560 |
Charged to statement of operations | 1,329 | 2,621 |
Utilized | -9,016 | ' |
Deconsolidation | -3,075 | ' |
Foreign currency adjustment | 192 | -367 |
Valuation Allowances, Balance, Ending Balance | 1,244 | 11,814 |
FTS Patent [Member] | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Valuation Allowances, Balance, Beginning Balance | 474 | 660 |
Utilized | ' | -90 |
Foreign currency adjustment | -105 | -96 |
Valuation Allowances, Balance, Ending Balance | 369 | 474 |
Other [Member] | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Valuation Allowances, Balance, Beginning Balance | 236 | 202 |
Charged to statement of operations | ' | 33 |
Foreign currency adjustment | -33 | 1 |
Valuation Allowances, Balance, Ending Balance | $203 | $236 |
Income_Taxes_Schedule_Of_Opera
Income Taxes (Schedule Of Operating Loss Carryforwards) (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Income Taxes [Abstract] | ' |
US net operating loss carry forwards | $3,340 |
Income_Taxes_Schedule_Of_Recon
Income Taxes (Schedule Of Reconciliation Of Total Amounts Of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Taxes [Abstract] | ' | ' | ' |
Unrecognized tax benefits - opening balance | $1,150 | $1,314 | $2,664 |
Gross decreases - tax positions in prior periods | ' | -170 | -1,159 |
Gross increase - tax positions in current period | 38 | 216 | 97 |
Lapse of statute limitations | ' | ' | ' |
Foreign currency adjustment | -28 | -210 | -288 |
Unrecognized tax benefits - closing balance | $1,160 | $1,150 | $1,314 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Options exercise price range, lower limit | $6.59 |
Options exercise price range, upper limit | $24.46 |
Stock Options [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Options outstanding not included in computation of diluted earings per share | 1,516,240 |
Options exercise price range, lower limit | $7.35 |
Options exercise price range, upper limit | $24.46 |
Earnings_Per_Share_Income_From
Earnings Per Share (Income From Continuing Operations And Share Data Used In Basic And Diluted Earnings Per Share Computations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income Loss | $28,584 | $17,182 | $12,749 | $11,596 | $8,285 | ($4,681) | $2,629 | $6,744 | $70,111 | $12,977 | $44,651 |
Undistributed earnings | ' | ' | ' | ' | ' | ' | ' | ' | 70,111 | 12,977 | 44,651 |
Percent allocated to common shareholders (Calculation 1) | ' | ' | ' | ' | ' | ' | ' | ' | 99.00% | 99.00% | 99.00% |
Numerator for earnings per share: basic and diluted | ' | ' | ' | ' | ' | ' | ' | ' | $69,376 | $12,836 | $44,397 |
Denominator for basic earnings per share: weighted-average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 45,997 | 45,057 | 44,930 |
Effect of dilutive securities: Performance shares related to acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95 | ' |
Effect of dilutive securities: Stock options | ' | ' | ' | ' | ' | ' | ' | ' | 119 | 30 | 45 |
Denominator for diluted earnings per share: adjusted weighted average common shares outstanding and assumed conversion | ' | ' | ' | ' | ' | ' | ' | ' | 46,116 | 45,182 | 44,975 |
Earnings per share: Basic | $0.59 | $0.38 | $0.28 | $0.25 | $0.18 | ($0.10) | $0.06 | $0.15 | $1.51 | $0.28 | $0.99 |
Earnings per share: Diluted | $0.58 | $0.37 | $0.28 | $0.25 | $0.18 | ($0.10) | $0.06 | $0.15 | $1.50 | $0.28 | $0.99 |
Basic weighted-average common shares outstanding and unvested restricted shares expected to vest (B) | ' | ' | ' | ' | ' | ' | ' | ' | 46,484 | 45,553 | 45,187 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Schedule Of Supplemental Cash Flow Disclosures) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' |
Cash received from interest | $14,703 | $12,043 | $9,180 |
Cash paid for interest | 6,969 | 7,927 | 9,773 |
Cash paid for income taxes | $42,417 | $21,900 | $30,704 |
Supplemental_Cash_Flow_Informa3
Supplemental Cash Flow Information (Cash Flow Movements If Cash Had Been Transferred) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Other Significant Noncash Transactions [Line Items] | ' | ' | ' |
Issue of shares of the Company's common stock to BEE partners | $198 | $240 | ' |
Purchase of shares from BEE partners | ' | ' | -1,129 |
Black Economic Empowerment [Member] | If Cash Had Actually Flowed Between The Parties [Member] | ' | ' | ' |
Other Significant Noncash Transactions [Line Items] | ' | ' | ' |
Loans provided to BEE partners | -25,054 | ' | ' |
Loans repaid by BEE partners | 24,574 | ' | ' |
Issue of shares of the Company's common stock to BEE partners | 25,054 | ' | ' |
Purchase of shares from BEE partners | ($24,858) | ' | ' |
Operating_Segments_Narrative_D
Operating Segments (Narrative) (Details) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
customer | customer | customer | |
segment | |||
Operating Segments [Abstract] | ' | ' | ' |
Number of business segments | 3 | ' | ' |
Individually significant customer minimum revenue threshold percentage | 10.00% | ' | ' |
Number of customers accounting for more than ten percent of total revenue | 1 | 1 | 1 |
Percentage of customer revenue of total revenue | 27.00% | 42.00% | 41.00% |
Operating_Segments_Reconciliat
Operating Segments (Reconciliation Of Reportable Segments Revenue) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $182,753 | $138,126 | $137,283 | $123,494 | $117,882 | $111,141 | $111,442 | $111,682 | $581,656 | $452,147 | $390,264 |
South African Transaction Processing [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 250,034 | 242,244 | 191,619 |
International Transaction Processing [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 152,725 | 135,954 | 120,625 |
Financial Inclusion And Applied Technology [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 178,897 | 73,949 | 78,020 |
Reportable Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 621,897 | 486,694 | 406,047 |
Reportable Segment [Member] | South African Transaction Processing [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 261,577 | 242,739 | 194,630 |
Reportable Segment [Member] | International Transaction Processing [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 152,725 | 135,954 | 120,625 |
Reportable Segment [Member] | Financial Inclusion And Applied Technology [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 207,595 | 108,001 | 90,792 |
Inter-Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 40,241 | 34,547 | 15,783 |
Inter-Segment [Member] | South African Transaction Processing [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 11,543 | 495 | 3,011 |
Inter-Segment [Member] | Financial Inclusion And Applied Technology [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $28,698 | $34,052 | $12,772 |
Operating_Segments_Reconciliat1
Operating Segments (Reconciliation Of Reportable Segments Measure Of Profit Or Loss To Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Income (Loss) | $42,647 | $23,949 | $18,802 | $16,400 | $13,591 | ($4,726) | $4,972 | $9,325 | $101,798 | $23,162 | $61,150 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 14,817 | 12,083 | 8,576 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -7,473 | -7,966 | -9,345 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 109,142 | 27,279 | 60,381 |
Reportable Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 144,038 | 50,383 | 94,439 |
Inter-Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($42,240) | ($27,221) | ($33,289) |
Operating_Segments_Summary_Of_
Operating Segments (Summary Of Segment Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $182,753 | $138,126 | $137,283 | $123,494 | $117,882 | $111,141 | $111,442 | $111,682 | $581,656 | $452,147 | $390,264 |
Operating income (loss) | 42,647 | 23,949 | 18,802 | 16,400 | 13,591 | -4,726 | 4,972 | 9,325 | 101,798 | 23,162 | 61,150 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 40,286 | 40,599 | 36,499 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 23,906 | 22,747 | 39,167 |
Reportable Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 621,897 | 486,694 | 406,047 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 144,038 | 50,383 | 94,439 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 23,733 | 22,377 | 16,942 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 23,906 | 22,747 | 39,167 |
Inter-Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 40,241 | 34,547 | 15,783 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -42,240 | -27,221 | -33,289 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 16,553 | 18,222 | 19,557 |
South African Transaction Processing [Member] | Reportable Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 261,577 | 242,739 | 194,630 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 61,401 | -21,316 | 33,906 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 7,036 | 7,516 | 2,982 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 3,425 | 9,400 | 23,332 |
International Transaction Processing [Member] | Reportable Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 152,725 | 135,954 | 120,625 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 21,952 | 14,208 | 14,649 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 15,823 | 14,183 | 13,209 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 19,393 | 12,490 | 14,994 |
Financial Inclusion And Applied Technology [Member] | Reportable Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 207,595 | 108,001 | 90,792 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 60,685 | 57,491 | 45,884 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 874 | 678 | 751 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | $1,088 | $857 | $841 |
Operating_Segments_Revenue_Bas
Operating Segments (Revenue Based On Geographic Location) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $182,753 | $138,126 | $137,283 | $123,494 | $117,882 | $111,141 | $111,442 | $111,682 | $581,656 | $452,147 | $390,264 |
South Africa [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 428,931 | 317,916 | 272,063 |
South Korea [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 146,667 | 129,338 | 114,096 |
Rest Of World [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $6,058 | $4,893 | $4,105 |
Operating_Segments_LongLived_A
Operating Segments (Long-Lived Assets Based On Geographical Location) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
In Thousands, unless otherwise specified | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | $342,050 | $339,123 | $371,491 |
South Africa [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 105,627 | 117,858 | 140,308 |
South Korea [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | 229,830 | 213,589 | 224,272 |
Rest Of World [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-Lived Assets | $6,593 | $7,676 | $6,911 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
USD ($) | USD ($) | USD ($) | Guarantee [Member] | Guarantee [Member] | Nedbank [Member] | Nedbank [Member] | |
USD ($) | ZAR | Guarantee [Member] | Guarantee [Member] | ||||
USD ($) | ZAR | ||||||
Guarantor Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Operating lease payments | $7.50 | $15.90 | $7.50 | ' | ' | ' | ' |
Capital commitments | 0.2 | 0.3 | ' | ' | ' | ' | ' |
Guarantee amount | ' | ' | ' | 11.8 | 125 | 12.8 | 135.1 |
Purchase obligations | 5.5 | 3.9 | ' | ' | ' | ' | ' |
Maximum payment amount under guarantee | ' | ' | ' | $12.80 | 135.1 | ' | ' |
Charge rate, minimum | ' | ' | ' | 0.20% | 0.20% | ' | ' |
Charge rate, maximum | ' | ' | ' | 2.00% | 2.00% | ' | ' |
Commitments_And_Contingencies_2
Commitments And Contingencies (Future Minimum Payments Under Operating Leases) (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies [Abstract] | ' |
Due within 1 year | $3,490 |
Due within 2 years | 2,608 |
Due within 3 years | 1,126 |
Due within 4 years | $363 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' |
Payment to PBEL | $0.10 | $0.80 |
Unaudited_Quartely_Results_Det
Unaudited Quartely Results (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Unaudited Quarterly Results [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $182,753 | $138,126 | $137,283 | $123,494 | $117,882 | $111,141 | $111,442 | $111,682 | $581,656 | $452,147 | $390,264 |
Operating (loss) income | 42,647 | 23,949 | 18,802 | 16,400 | 13,591 | -4,726 | 4,972 | 9,325 | 101,798 | 23,162 | 61,150 |
Net (loss) income attributable to Net 1 | $28,584 | $17,182 | $12,749 | $11,596 | $8,285 | ($4,681) | $2,629 | $6,744 | $70,111 | $12,977 | $44,651 |
Basic earnings attributable to Net1 shareholders | $0.59 | $0.38 | $0.28 | $0.25 | $0.18 | ($0.10) | $0.06 | $0.15 | $1.51 | $0.28 | $0.99 |
Diluted earnings attributable to Net1 shareholders | $0.58 | $0.37 | $0.28 | $0.25 | $0.18 | ($0.10) | $0.06 | $0.15 | $1.50 | $0.28 | $0.99 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2012 | Aug. 27, 2014 | Aug. 27, 2014 | |
Business Venture Investments No 1567 (Proprietary) Limited (RF) [Member] | Business Venture Investments No 1567 (Proprietary) Limited (RF) [Member] | |||
Subsequent Event [Member] | Subsequent Event [Member] | |||
Common Stock [Member] | Common Stock [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Stock repurchased, shares | 2,428,122 | 180,656 | 1,837,432 | ' |
Stock repurchased, value | $24,858,000 | $1,129,000 | $9,200,000 | ' |
Percentage of ordinary shares oustanding after subscription | ' | ' | 12.50% | ' |
Subscription of shares | ' | ' | ' | $1,400,000 |