South Africa’s largest company by value, Naspers has reported a 24% rise in revenue for the 6-months ended 30 September 2015, climbing to R74.3 billion, driven by growth in the e-commerce segment.<\/p>\n
This number was taken on an economic interest basis, while consolidated revenues of R37.8 billion grew by 10%, it said.<\/p>\n
Core headline earnings advanced 45% to R8.8 billion.<\/p>\n
Operating profit declined substantially to R641 million, from R2.25 billion before.<\/p>\n
The group said that an impairment loss of R1.9 billion has been recognised during the period for its investment in Latin American online comparison shopping (OCS) business, Buscap\u00e9.<\/p>\n
The media giant said that internet revenues now account for 64% of group revenues, up from 60% a year ago. Businesses outside South Africa now contribute 75% of revenues, up from 71% a year ago.<\/p>\n
Naspers said the internet segment delivered revenues of R47.7 billion, an increase of 33% year on year. Trading profit was R10.2 billion \u2013 a 57% year-on-year increase on the back of a strong Tencent performance.<\/p>\n
Naspers has a 34% stake in China based e-commerce firm Tencent, which reported revenues of RMB45.8 billion for the period, up 20% year on year.<\/p>\n
Over the review period, the e-commerce segment grew revenue by 26% to R15.3 billion.<\/p>\n
Continued investments to drive growth and innovation, develop new markets and deliver superior customer experiences resulted in a trading loss of R3.8 billion, with development spend of R4.3 billion.<\/p>\n
The video segment reported revenues of R22.6 billion \u2013 an increase of 12% over the prior year.<\/p>\n
Trading profit was constant at R5.0 billion compared to the prior year due to the group\u2019s investment in ShowMax, weakening economies and currencies, and sizeable foreign input costs in sub-Saharan Africa.<\/p>\n
Development spend was R644 million, up marginally year on year, as the decrease in spend following the completion of the DTT rollout is offset by investments to scale ShowMax.<\/p>\n
The DTT business recorded good growth, adding 172,600 customers. However, this growth was offset by a decline in the DTH business of 164 300 customers, largely in sub-Saharan Africa. The total customer base closed at 10.2 million at 30 September 2015, Naspers said.<\/p>\n
Naspers said it aims to raise as much as $2.5 billion in cash to fund further acquisitions. It said the fund raising will \u201cenhance financial flexibility over the next few years to invest in attractive growth opportunities”.<\/p>\n
Shares in Naspers traded at R2,178 on the JSE in the afternoon session on Friday, wiving the group a market cap of R903 billion.<\/p>\n
Shares in the group are up 540% over the past five years, and up 51% over the past year.<\/p>\n
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