Naspers Outpaces Industry Peers with Accelerated Profitability and Strategic Growth

Naspers, a global internet group and one of the largest technology investors globally, has made a significant announcement that marks a milestone in its financial and strategic journey. With a measured blend of rapidly advancing profitability and diligently managed growth, Naspers is not just keeping pace with the world's swift technological and economic changes - it's setting a pace that outstrips competitors.

This achievement comes in the wake of a concerted effort by the group to refine and advance its business fundamentals. The result is an envious growth trajectory, systematically outperforming sector peers, particularly in the Ecommerce realm. This segment boasted a whopping consolidated revenue of $2.9 billion, a clear indicator of Naspers' robust momentum and strategic foresight.

A laser focus on profitability has paid off handsomely. Naspers reported meaningful improvement in profitability, enabling the Group to advance its Prosus Ecommerce profitability target by six months to the second half of 2024. The consolidated Ecommerce trading loss slimmed down to just $38 million, demonstrating a 9% margin improvement year-on-year. This financial robustness is further underscored by iFood's attainment of profitability, extending beyond its core to its overall operations.

Not resting on its laurels, Naspers has more than doubled its core headline earnings, recording a staggering 112% increase. This surge is attributed to improved profitability in both Ecommerce and Tencent, a leading technology company in which Naspers holds a considerable stake. Moreover, free cash inflow has notably increased to $677 million, presenting an eightfold year-on-year growth.

The ongoing buyback program, one of the pillars of Naspers' strategy, continues to compound value for shareholders, creating $25 billion in value since its inception and delivering a 7% net asset value (NAV) per share accretion.

Moreover, a strong balance sheet with central cash of $15.1 billion positions Naspers in an admirable place of financial strength. This was further streamlined with the removal of the cross-holding agreement between Prosus and Naspers in September 2023, simplifying the Group's structure and enabling more transparent governance.

Ervin Tu, Interim Group CEO of Prosus and Naspers, sheds light on the company's strategic initiatives, emphasizing the significant progress made in driving profitable growth. The group’s focus on active management has seen its Ecommerce portfolio nearing a breakeven point while growing at scale. Alongside structural simplification and accretive benefits from the buyback program, Naspers' proficiency in technology domains like AI poises the company to support and elevate technology companies worldwide.

Basil Sgourdos, Group CFO of Prosus and Naspers, affirms the strong financial performance and anticipation of continued growth momentum. His outlook is backed by solid evidence – the profitability of Classifieds and Food Delivery segments and significant strides toward profitability in PayU, the Group's Payments & Fintech arm. This strong performance is not constrained to global markets, with the South African businesses forming a key part of the strategic growth narrative.

As the company positions itself emphatically at the forefront of the tech industry, Naspers demonstrates that astute portfolio management, disciplined capital allocation, and a clear vision for the future are the formulae for success even in times of rapid change. The company's results, along with their implications for stakeholders and the market at large, prove that with the right approach, it's possible to lead rather than follow in the fast-paced world of global technology.

Further details about Naspers' performance and future outlook are available on the company's website, where stakeholders and interested parties can delve into the intricacies of the Group's financial results and strategic direction.