Core headline earnings, which are considered by the board as a good indication of sustainable performance, were up 33% to R3.2 billion. This translates to R8.60 per share.<\/p>\n
The consolidated trading profit grew by 23% to R3.3 billion, mainly due to scale benefits. Naspers’s share of income from associates, which includes Tencent in China, Mail.ru in Russia and Abril in Brazil, reached R1.4 billion.<\/p>\n
Free cash flow increased to R2.1 billion. With gearing a low 14%, the balance sheet remains sound.<\/p>\n
“We had a good first half to the year”, said Ton Vosloo, Naspers chairman. “Underlying growth trends were generally positive, especially for the internet. The 2010 World Cup also had a positive impact on pay television”, he added.<\/p>\n
The pay-television businesses expanded by 498 000 gross subscribers. The group now reaches 4,4 million households across Africa. Pay-TV margins were lower due to cost pressures from growing the subscriber base and increased sport content costs.<\/p>\n
Internet revenues grew strongly and increased by 54% to R5.5 billion. Trading profits, up 73% on the previous year, amounted to R1.8 billion. Further investments were made in expanding the internet footprint and launching new products and services.<\/p>\n
Irdeto refined its products and structure. Whilst consolidated revenues were flat, the operating performance of the technology division improved.<\/p>\n
Print media in South Africa showed only modest revenue growth of 4%. Media 24’s trading profits were up 10% due to improved cost efficiencies.<\/p>\n
“We may be able to maintain revenue growth during the second half of the year, but we’ll accelerate investment in new developments. In pay-television we will be launching new technologies like mobile television and DTT. This is likely to subdue profits in the next six months,” Naspers CEO Koos Bekker said.<\/p>\n
“Increased focus on organic growth and building out internet businesses will result in more costs”, Naspers financial director Steve Pacak said, adding that the company was focused on medium to longer-term returns.<\/p>\n