Naspers profit climbs on Tencent, e-commerce boost

Chinese internet giant Tencent and e-commerce businesses have helped lift Naspers’ revenues by 6% to $12.2bn for the financial year ended March 31 2016.

In its full-year results, Naspers reported on Friday that its core headline earnings are up 21% in dollar terms to $1.2bn and that 77% of its revenues were generated outside of South Africa. Naspers, in its results announcement, said it regards core headline earnings as its best indicator of sustainable earnings.

A key component to Cape Town headquartered Naspers is its 34% stake in Chinese internet giant Tencent. For the year ended December 31 2015, Tencent recorded 30% annual growth to 102.9 billion yuan.

Meanwhile, Naspers’ stake in Russian email service, Mail.ru, also yielded positive results as that business unit’s revenue for the year ended December 2015 rose 11% to 36.3 billion rubles.

Naspers’ e-commerce revenues further increased 6% to $2.6bn.

“Our ecommerce businesses benefit both from the continued growth of existing businesses and investments in new models,” said Naspers’ CEO Bob van Dijk.

However, Naspers’ video entertainment revenues were down 11% year on year to $3.4bn, owing to weaker African currencies.

The South African consumer base of Naspers’ video entertainment business, though, increased by 325 000 subscribers.

“Overall the group delivered a satisfactory performance,” said Naspers chair Koos Bekker.

Fin24

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Naspers profit climbs on Tencent, e-commerce boost