Naspers Limited (JSE: NPN; LSE: NPSN) Today Announced Its Results for the Six Months to 30 September 2017
November 29 2017 - 7:00AM
Business Wire
STRONG GROWTH, WITH ECOMMERCE BUSINESSES AND
TENCENT BEING KEY DRIVERS
Naspers today announced its financial results for the six months
to 30 September 2017. Revenues, measured on an economic-interest
basis (including the proportionate contribution from associates and
joint ventures), increased 33% year on year to US$9.0bn (or 39% if
acquisitions, disposals and currency movements are excluded).
Businesses outside South Africa contributed 82% of revenues, up
from 80% a year ago.
Core headline earnings grew 65% to US$1.5bn. An encouraging
development is the reduction in development spend year on year, on
both a consolidated and an economic-interest basis. “We delivered a
strong performance for the first six months of the financial year,”
said Naspers chair Koos Bekker. “Ecommerce accelerated its topline
growth, whilst Tencent produced another excellent set of results.
Video entertainment performed solidly in South Africa and managed
to stabilise losses in sub-Saharan Africa, despite the continued
need to navigate weak macroeconomic conditions.”
Naspers reports in United States dollars (US$), with the
financial performances of the businesses consolidated in their
functional currencies and translated into US$. Where pertinent,
performance in local currencies, adjusted for acquisitions and
disposals, is quoted in brackets after the equivalent International
Financial Reporting Standards metrics.
Revenues in the internet segment, which now accounts for 77% of
group revenues, were up 42% (52%) to US$6.9bn. Trading profits
increased 47% (61%), boosted by Tencent and declining losses in
several ecommerce units. “Ecommerce growth was fuelled by strong
performances across all segments as they continue to scale.
Classifieds gained further traction across the portfolio and,
excluding the additional investment in letgo, the business turned
profitable during the reporting period,” said CEO Bob van Dijk.
“Over the past six months we also strengthened our presence in
online food delivery with significant investments in Delivery Hero,
plus Swiggy in India.”
The video-entertainment business recorded only modest subscriber
growth, closing the period at 12.2 million households. The segment
reported revenues of US$1.8bn, up 8% (7%) on the prior year, and a
4% (3%) increase in trading profit to US$234m. The South African
DStv business continued to deliver healthy profits and cashflows,
despite a weakening economic backdrop, and is seeing good early
traction from combining its Showmax offering with DStv Now. In
sub-Saharan Africa, the business continues to face macroeconomic
challenges and weak currencies, but assuming no further substantial
currency weakness, as well as continued momentum in subscriber
growth and ongoing cost controls, the group will be on track to
return to profitability in the coming years.
Media24 achieved satisfactory results, with the structural
decline in traditional revenue streams offset by significant
cost-reductions throughout the business. The growth businesses,
notably ecommerce and digital media initiatives, reported strong
growth and now represent 8% of total revenue. The segment’s focus
on audience migration to digital formats remains.
Equity-accounted investments contributed US$1.7bn to core
headline earnings, an improvement of 52% year on year. Consolidated
free cash outflow of US$96m was recorded. The balance sheet remains
healthy, with net debt of US$140m reflecting gearing of only
1%.
“The group will continue to drive scale to bring its ecommerce
business to profitability and cash generation,” said CFO Basil
Sgourdos. “We will manage macro challenges in the more mature
businesses through tight cost controls and will continue to
innovate and reposition our businesses to counter increasing
competition by global players. We will also continue to invest in
opportunities that may power future growth,” he added.
The complete results are available on the Naspers website at
http://www.naspers.com.
IMPORTANT INFORMATION
This media release contains forward-looking statements as
defined in the United States Private Securities Litigation Reform
Act of 1995. Words such as “believe”, “anticipate”, “intend”,
“seek”, “will”, “plan”, “could”, “may”, “endeavour” and similar
expressions are intended to identify such forward-looking
statements, but are not the exclusive means of identifying such
statements. While these forward-looking statements represent our
judgements and future expectations, a number of risks,
uncertainties and other important factors could cause actual
developments and results to differ materially from our
expectations. These include numerous factors that could adversely
affect our businesses and financial performance. We are not under
any obligation (and expressly disclaim any such obligation) to
update or alter our forward-looking statements whether as a result
of new information, future events or otherwise. Investors are
cautioned not to place undue reliance on any forward-looking
statements contained herein.
END -
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171129005571/en/
NaspersMeloy Horn, Head of Investor RelationsTel:
+27 11 289 3320+27 11 289 4446Mobile: +27 82 772 7123orBasil
Sgourdos, Chief Financial OfficerTel: +852 2847 3365Mobile:
+852 9080 5155
Naspers (NASDAQ:NPSN)
Historical Stock Chart
From May 2024 to Jun 2024
Naspers (NASDAQ:NPSN)
Historical Stock Chart
From Jun 2023 to Jun 2024