Here’s where Naspers makes its money

While still one of the largest companies in South Africa, internet and media group Naspers has also begun to shine on the global stage, thanks to a strong acquisition strategy.

Naspers now derives as much as 84% of revenues from outside South Africa, up from 80% a year ago.

The group made big plays in the online food delivery industry by investing a combined $1.4 billion in Germany based firm Delivery Hero, and India based startup Swiggy.

Locally, the group invested $74 million in Takealot, in April, and followed this with another $128-million investment in December 2017.

Through these two investments, totalling $202 million, Naspers now owns an effective stake of 96% in Takealot.

The company made an additional four investments in various startup business during 2017.

The group last week announced its financial results for the year ended March 2018, showing a 9% rise in consolidated revenue to $6.66 billion, “as e-commerce continued to scale”.

It said that e-commerce revenues grew 15% or 32% in local currency and adjusted for the impact of acquisitions and disposals – including Allegro and Netretail.

Revenues, measured on an economic interest basis (including the proportionate contribution from associates and joint ventures), increased 38% year on year to $20.1 billion. Core headline earnings grew 72% to $2.5 billion, Naspers said.

The group said it reduced its operating loss to US$198 million from a prior loss of US$360 million, however profit for the year soared to $11.3 billion, from $2.16 billion, due to the disposal of a 2% interest in Tencent Holdings.

Naspers said that a diversified business mix is an ongoing shift. “Diversity of revenue streams reduce the risk of exposure to any one territory/currency or business model”.

Annuity income – subscription revenues, IVAS and gaming – accounted for 55% of revenues, while advertising revenue is only 13% of total revenue, the group said.


Read: Naspers profits massively from Tencent disposal

 

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