Naspers goes hi-tech with its broadcasting

Naspers yesterday posted a 67 percent surge in core headline earnings, which strip out goodwill and unusual income and expenses, to R1.97 billion.

The company said that after four years "of rapid earnings and cash flow growth, some strategic investments are required in the year ahead to deliver growth in ensuing years".

It will grow its broadband service in China and North America and DVB-H in South Africa. It had already started DVB-H trials in partnership with cellular operator Vodacom.

The group has experienced strong growth in South Africa and China, but "future growth will be reliant on continued economic expansion in our markets, which is uncertain".

Operating profit grew 22 percent to R3 billion, with an operating margin of 19 percent. Profit increased to R3.3 billion from R2.5 billion in the previous period.

Naspers publishes the country’s biggest newspaper, Daily Sun, and has a string of magazines including You, Huisgenoot and Move. It also owns pay television division DStv, which posted a 15 percent growth in revenue to R8.9 billion.

The print media division increased revenue by 15 percent to R5.5 billion, while operating profit fell R9 million to R595 million.

Group revenue increased by 16 percent to R15.7 billion, driven by the signing up of 163 000 new pay television subscribers and a rise of 22 percent in advertising revenue.

The South African pay television market grew subscribers by 103 000 to 1.25 million. The sub-Saharan African subscriber base excluding South Africa grew 15 percent to 385 000 owing to expansion in Angola.