Naspers, Africa’s largest company by value announced today that it’s core headline earnings grew 31 percent to US$914m, while revenues increased 16 percent year on year to US$6,8bn excluding acquisitions, disposals and currency movements.
The firm, with interests in both internet ventures, media and entertainment saw a revenue growth of 27 percent with businesses outside South Africa contributing 80 percent of revenues, up from 75 percent a year ago.
“We experienced a satisfactory first six months to the financial year,” said Naspers chair Koos Bekker. “The ecommerce businesses and Tencent performed well, while video entertainment and print did their best in a pretty tough environment.”
Naspers which now reports in United States dollars (US$), says currency again impacted its results as the firm buys video entertainment licenses for DStv, GOtv, ShowMax in US Dollars but charges its subscribers in their local currencies affecting both its revenues and profitability. Ecommerce was not largely affected by currencies as online stores sell in their local currencies.
Naspers now has 23 profitable ecommerce businesses, up from 18 a year ago. According to CEO Bob van Dijk. “Classifieds delivered strong results across the portfolio, boosted in particular by Avito. Our etail, travel and payments businesses all performed well.”
The digital terrestrial television (DTT) business and the African video entertainment group experienced the impact of weak currencies and reported revenues of US$1,6bn down 8% and trading profit dropped 43% to US$226m. However, both its DTT and African entertainment group reported 11 million subscribers. Media24 continues to face structural declines in its traditional print business while ShowMax is growing steadily.
Revenues, measured on an economic interest basis (including the proportionate contribution from associates and joint ventures), increased 16% year on year to US$6,8bn. Excluding acquisitions, disposals and currency movements, revenue growth was 27%. Businesses outside South Africa contributed 80% of revenues, up from 75% a year ago.
