Naspers Doubles Profit Thanks to Tencent and Online Shopping

Naspers Tencent Profit Boost: Naspers proudly announced its profit figure nearly doubled, while its ecommerce business swung to profit six months ahead of target.

The earnings were accelerated by enhanced performance of its e-commerce businesses and contribution from China’s Tencent. 

Naspers Tencent Profit Boost

Tencent accounts for the bulk of earnings and revenues. Note that Naspers only owns a stake in Chinese tech giant Tencent Holdings through Prosus.

According to Reuters, Naspers’ core headline earnings per share from continuing operations rose to 1,148 U.S. cents for the year ended March 31, from a restated 546 cents a year ago. 

Ecommerce profit for the year was $24 million compared with a loss of $436 million. However, net profit fell to $2.855 billion from $4.33 billion. This is mainly due to a lower gain on the sale of investments during the year.

Naspers Tencent Profit Boost, A Result Of Strong Growth In Food Delivery Segments

Naspers highlighted that the Group revenue for the year rose to $6.4 billion from $6.0 billion. The South African company emphasised that the revenue was boosted by strong growth in the classifieds and food delivery segments.

Also, according to FactSet, Prosus revenue grew 11% to $5.5 billion while core headline earnings rose 84% to $5.0 billion. Naspers owns 40.1% of Prosus.

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Prosus and Naspers Chief Financial Officer Basil Sgourdos said, “Our strong and flexible balance sheet, active portfolio management and disciplined capital allocation put us in a strong position to deliver against our long-term strategy.”

Conclusion

Naspers directors said it had been a “standout” year, as the group structure had been simplified.

They noted that there had been improvements across “all core performance metrics”; and the profitability of the e-commerce business had been achieved six months ahead of schedule.