Naspers on Friday announced its financial results for the year to 31 March 2018, showing a 9% rise in consolidated revenue to US$6.66 billion, “as e-commerce continued to scale”.<\/p>\n
The group 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).<\/p>\n
Revenues, measured on an economic interest basis (including the proportionate contribution from associates and joint ventures), increased 38% year on year to US$20.1 billion. Core headline earnings grew 72% to US$2.5 billion, Naspers said.<\/p>\n
Group consolidated trading loss was US$41 million – a marked improvement on last year (US$57 million).<\/p>\n
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 US$11.3 billion, from US$2.16 billion, due to the disposal of a 2% interest in Tencent Holdings.<\/p>\n
“To reinforce the balance sheet and pursue growth opportunities in, among others, the classifieds, online food-delivery and fintech (financial technology) businesses, we sold a 2% interest in Tencent in March 2018, generating proceeds of US$9.8 billion,” it said.<\/p>\n
Diluted headline earnings per N ordinary share increased to 403 US cents, from 38 cents previously.<\/p>\n
The board recommended that the annual gross dividend be increased by 12% to 650 cents (previously 580 cents) per listed N ordinary share and 130 cents (previously 116 cents) per unlisted A ordinary share.<\/p>\n
Businesses outside South Africa contributed 84% of revenues, compared to 80% a year ago, Naspers said.<\/p>\n
“We made good progress this year. Financial performance was strong. Growth in both revenue and trading profit accelerated,” said Naspers chair Koos Bekker. “We benefited from scale effects in ecommerce and a positive contribution from Tencent. Video entertainment\u2019s
\nresults were steady.”<\/p>\n
Naspers said that internet revenues grew 50% (51%) to US$15.9 billion and trading profit was up 50% (56%) to US$3.1 billion, fuelled by ecommerce and Tencent’s strong results. This segment now contributes 79% of group revenue – up from 73% last year.<\/p>\n
Ecommerce revenue increased 25% (36%) to US$3.6 billion. Classifieds, business-to-consumer (B2C), payments and food delivery all contributed meaningfully to the segment’s 9% revenue acceleration. Increased scale resulted in trading losses reducing 8% (24%) to US$673 million and a considerable improvement in trading loss margins from 25% last year to 18% this year.<\/p>\n
Profitable ecommerce businesses generated revenues of US$1.7 billion and trading profits of US$352 million (2017: US$699 million and US$229 million respectively).<\/p>\n
Shares in Naspers climbed\u00a0 3.76% to R3,328 in afternoon trade on the JSE.<\/p>\n