Naspers (NPNJn.J) announced on Monday a significant surge in its full-year earnings, more than doubling from the previous year, driven by robust performances in its e-commerce ventures and contributions from Tencent (0700.HK) in China, which remains a cornerstone of its earnings and revenues.
For the year ended March 31, the South African technology investor reported core headline earnings per share from continuing operations of 1,148 U.S. cents, up sharply from a restated 546 cents in the previous year. Naspers, whose global investments are housed under Amsterdam-listed Prosus (PRX.AS), noted that its consolidated e-commerce operations achieved profitability ahead of expectations, posting a trading profit of $24 million for the year compared to a loss of $435 million previously.
The company reported an 8% increase in consolidated revenue from continuing operations, reaching $6.4 billion. Key contributors to revenue growth included its Classifieds and Food Delivery businesses, which showed robust performance throughout the fiscal year.
Naspers controls Prosus and manages its international investments through this entity. Prosus holds investments in a diverse range of businesses, including food delivery services like iFood in Brazil and Delivery Hero (DHER.DE), educational software firms such as SkillSoft and Stack Overflow, and payment platforms like PayU focused on India.
Additionally, Prosus maintains a strategic stake in Tencent, a leading player in Chinese software and gaming industries. Notably, Prosus reduced its stake in Tencent from 26.2% to 25% last year as part of a rolling share buyback program aimed at enhancing shareholder value. The company justified these buybacks, citing Prosus’s current market valuation, which it believes significantly undervalues its Tencent holdings.
The financial results underscore Naspers and Prosus’s resilience and strategic positioning in navigating global markets, particularly amid evolving economic landscapes and regulatory environments.
