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One quick question. Is their new agreement with SASSA going to reverse the trend we've seen over the last few years for UEPS to reduce its dependence on SASSA?

For the time being the new contract will increase SASSA as a percent of UEPS's sales. While the new contract reduces margins, the SASSA contribution to absolute operating income (in rand terms) should remain the same, which means it should continue to shrink as a percentage of UEPS's business.

However, with EasyPay buying Eason (mobile top-ups and utility bill pay) we will see margins in this segment shrink dramatically even as EasyPay revenues should increase meaningfully.

Also, efforts to build market share are resulting in lower margins for KSNET - which also means it will take longer for non-SASSA operations to become a larger piece of the profitability pie.

All said, I think we'll see SASSA shrink as a % of UEPS business as time goes on, but the trend will be slowed in the near-term by these various moving pieces.
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