{"id":470195,"date":"2022-11-22T08:25:42","date_gmt":"2022-11-22T06:25:42","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=470195"},"modified":"2022-11-22T08:45:36","modified_gmt":"2022-11-22T06:45:36","slug":"naspers-issues-major-profit-warning","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/business\/470195-naspers-issues-major-profit-warning.html","title":{"rendered":"Naspers issues major profit warning"},"content":{"rendered":"

Naspers issued<\/a><\/strong> a trading update 45 minutes after the JSE closed on Monday, warning shareholders that it expects a major decline in half-year profits.<\/p>\n

It warned that headline earnings per share for its continuing operations would decline by between 100% and 108% from $3.51 to between -$0.28 and -$0.02.<\/p>\n

Core headline earnings looked somewhat better, but Naspers still projected a decline of 52.3% to 59.7% \u2014 from $3.94 to between $1.59 and $1.88 for continuing operations.<\/p>\n

\u201cShareholders are reminded that the board considers core headline earnings an appropriate indicator of the operating performance of the group, as it adjusts for non-operational items,\u201d Naspers stated.<\/p>\n

The company attributed its headline earnings decline to lower profitability across our associates.<\/p>\n

This includes its share of Tencent\u2019s fair value losses on financial instruments of $372 million, compared to fair value gains of $1.0bn in the prior period.<\/p>\n

\u201cHeadline earnings are also impacted by our increased investment in earlier stage ecommerce extensions of autos, convenience, and credit,\u201d Naspers stated.<\/p>\n

\u201cThe significant decrease in earnings per share relates to a gain of $12.3 billion realised on the sale of a 2% interest in Tencent in the prior year compared to an expected gain of only $2.8 billion on the sell down of Tencent shares in the current period to fund the open-ended share-repurchase program announced on 27 June 2022,\u201d Naspers said.<\/p>\n

It notified shareholders that it expects an 81% to 88% decrease in earnings per share from $30.14 to between $3.52 and $5.64.<\/p>\n

\u201cImpairment charges and dilution losses related to investments in associates are expected to be approximately $1.8 billion higher in the current period,\u201d said Naspers.<\/p>\n

\u201cThese are excluded from headline and core headline earnings per share.\u201d<\/p>\n

Naspers subsidiary Prosus issued<\/a><\/strong> a similar warning at the same time.<\/p>\n

Its core headline earnings are also expected to decrease by between 51% and 58%, headline earnings by between 97% and 104%, and earnings per share by between 80% and 87%.<\/p>\n

It gave the same explanation for the decreases as Naspers \u2014 Tencent and lower profitability from associates.<\/p>\n

\u201cMore details will be published with the condensed consolidated interim financial statements on Wednesday, 23 November 2022,\u201d Naspers and Prosus said.<\/p>\n

\n

Now read: Naspers CEO paid R1.3 billion in salaries and bonuses<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"

Naspers issued a notice after market close on Monday, warning shareholders that its profits will be taking a major hit.<\/p>\n","protected":false},"author":15,"featured_media":461824,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[19],"tags":[35,1643,59639],"class_list":["post-470195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline","tag-naspers","tag-prosus"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/470195"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=470195"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/470195\/revisions"}],"predecessor-version":[{"id":470203,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/470195\/revisions\/470203"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/461824"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=470195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=470195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=470195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}