South Africa’s Naspers profit doubles on Tencent, e-commerce unit
TLDR
- Naspers' full-year earnings more than doubled, fueled by improved performance of e-commerce businesses and contributions from Tencent.
- Core headline earnings per share in South Africa rose significantly to 1,148 U.S. cents from 546 cents the previous year.
- Consolidated e-commerce business achieved profitability earlier than expected, with a trading profit of $24 million compared to a previous year's loss of $435 million.
South Africa’s Naspers reported that its full-year earnings more than doubled, driven by the improved performance of its e-commerce businesses and contributions from China’s Tencent, which accounts for most of its earnings and revenues.
The technology investor announced that its core headline earnings per share, a key indicator of operating performance in South Africa, from continuing operations rose to 1,148 U.S. cents for the year ended March 31, up from a restated 546 cents the previous year.
With global investments housed in Amsterdam-listed Prosus, Naspers noted that its consolidated e-commerce business achieved profitability in the second half of the year, ahead of its forecast for the first half of 2025. The company posted an annual consolidated e-commerce trading profit of $24 million, compared to a loss of $435 million the previous year.
Key Takeaways
Naspers controls Amsterdam-listed Prosus, where it houses its international investments. These investments include food delivery companies such as Brazil’s iFood, Delivery Hero, and India’s Swiggy, as well as educational software firms like SkillSoft and Stack Overflow, and payments companies like India-focused PayU. Prosus also holds a stake in Chinese software and gaming giant Tencent, which it reduced from 26.2% to 25% last year to fund a rolling share buyback program. Naspers and Prosus argue that these buybacks benefit shareholders because Prosus is valued at 30% less than the worth of its Tencent stake, which is approximately $98 billion at current prices.
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