Naspers lifts interim revenue – and says it’s now a fully online business

Internet giant Naspers said it delivered solid results for the six months ended September 2019, with revenue up 20% to $10.2 billion, while trading profit grew 9% to $1.9 billion.

Core headline earnings grew 10% to $1.7 billion over the period, it said, while overall e-commerce revenue increased 27% to $2.1 billion.

Naspers said that following a number of unbundling initiatives, effectively 100% of revenue and profit now coming from online businesses.

Tencent grew revenues by a healthy 13% year on year, while profitability improved by 11% year on year.

Driven by classifieds, online retail, and payments and fintech, the e-commerce business posted a strong performance, it said.

Overall revenue growth in e-commerce, adjusted for acquisitions and disposals, grew a strong 27% in local currency, led by a strong performance in the food delivery segment which grew orders 110% and revenues by 69%.

Looking ahead, the group said that it has a strong balance sheet with net cash of $5.9 billion to pursue growth.

Basil Sgourdos, group chief financial officer, said: “We executed well during the first six months of the year, growing revenue 20% to $10.2 billion, and trading profit 9% to $1.9 billion. All key segments made good progress against financial and strategic objectives.

“The classifieds and payments & fintech segments have reached profitability at their core and continue to grow strongly, while investing to drive future growth. Food delivery remains the largest investment area for the group this year, underscoring our confidence in the strong underlying unit economics of this business. We end the period with a strong net cash position of $5.9 billion, which positions us well to pursue further growth.”

“We entered FY20 well-positioned as a global consumer internet group following the successful listing and unbundling of MultiChoice Group. In the first six months, we successfully listed our international internet assets as Prosus on Euronext Amsterdam in September, creating
Europe’s largest consumer internet company by asset value and unlocking US$10 billion in value for our shareholders, said group chief executive, Bob van Dijk.

“The listing of Prosus positions us well for future growth, opening up investor access to our unique portfolio of international internet assets. For the six months ended 30 September, we delivered solid results and good progress in our core segments, which are growing fast and scaling well.”

For Prosus:

  • Revenues increased 20% to $9.9 billion (HY19: $8.9 billion).
  • Trading profit grew 7% to $1.9 billion (HY19: $1.8 billion).
  • Core headline earnings grew 10% to $1.7 billion (HY19: $1.6 billion).

Read: Naspers chief executive says SA investments will have to address bigger societal needs

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Naspers lifts interim revenue – and says it’s now a fully online business