Prosus CEO Forecasts 950% Surge in E-Commerce Profits
TLDR
- Prosus NV's e-commerce division projected to surge with a 950% increase in profits by March 2024.
- Fabricio Bloisi aims to boost Prosus' market value while focusing on e-commerce profitability and free cash flow.
- Indian businesses under Prosus, like Swiggy, set to go public in the next 12-18 months with AI integration across the portfolio.
Prosus NV’s new CEO, Fabricio Bloisi, has said that the company’s e-commerce division is expected to see adjusted profits surge by over 950% in the current fiscal year, projecting earnings before interest and taxes (EBIT) of $400 million by March 2024.
This compares to $38 million in the previous year, marking a major milestone for the South African business spun out from Naspers five years ago. Bloisi’s plan is to enhance the market value of Prosus, currently around $100 billion but the company’s stock is still heavily influenced by its investment in Tencent Holdings.
Bloisi aims to make e-commerce a significant source of profitability and free cash flow for the group, as e-commerce revenue growth accelerated in the first half of this year. Indian businesses owned by Prosus, including Swiggy, are expected to go public in the next 12 to 18 months, and the company is integrating AI into its operations across its portfolio.
Key Takeaways
Upcoming IPOs, such as Swiggy in India, and strategic divestments like the sale of its stake in China’s Trip.com, further demonstrate Prosus’s focus on reshaping its portfolio and delivering shareholder value. Africa is steadily moving away from traditional retail models and becoming the fastest-growing and most sophisticated market in the world. This is thanks to the explosive growth of young, urban, and digitally savvy consumers; increasing mobile phone penetration; the creation of digital payment and shopping networks; favorable governmental regulations and spending initiatives; and significant investment by both foreign and domestic companies. By 2025 half a billion people in Africa will be e-commerce users, per data from the International Trade Administration.
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