Naspers Pay-TV revenue rose 15% with an increase in the subscriber base of 648,000 to 5.6 million HH

Broadcast

Naspers CEO KoosBekker is quoted on Sens as saying his company experienced revenue growth across most of its businesses, including the pay-TV, media and Internet assets Tencent China and Russia's Mail.ru.Internet revenue grew substantially by 59% to R19,2bn, while trading profit increased by 9% to R3.8bn.

Pay-TV revenue rose 15% with an increase in the subscriber base of 648 000. The subscriber base is now 5.6m.

Print media revenue grew by 15% to R12.1bn. This was largely due to more printing contracts for the commercial print business, Paarl Media, rather than an increase in its print title circulations, as well as a 10% increase in revenue from the Brazilian-based Abril.

Consolidated revenue increased by 19%, to R39,5bn, mainly from an increase in revenue from the fast-growing Internet segment. Adjusted operating profit grew only 8%, to R6,3bn, due to consolidated development costs increasing significantly by 87%, to R2,8bn, mainly due to e-commerce. Diluted HEPS grew 15% to R17,89.

Naspers offers high margins, a return on equity of 16,5%, and its core operations remain cash-generative. It has a diversified portfolio of mature businesses but Tencent and Mail.ru, now responsible for 98% of the group's market cap, remain the key drivers of future growth. Analysts feel the share is fairly valued and recommend it as a hold.

Avusa has traditionally been a good generator of cash. Operating margins, however, have been in decline for the past few years, affected by technological shifts in the marketplace. Analysts feel the share is fairly valued and that the Richtrau offer is fair.