Naspers H1 revenue rises 24% to ZAR 74.3 bln
Naspers reported revenues of ZAR 74.3 billion for the six months to end September, or in US dollar terms, up 5 percent to USD 5.9 billion. On an organic basis, excluding the effects of foreign exchange and acquisitions, revenue grew by 20 percent. Core headline earnings increased 45 percent to ZAR 8.8 billion, with Tencent and the South African video-entertainment business being the main contributors. In US dollar terms, core headline earnings were up 22 percent to USD 693 million. These earnings improvements were partly offset by increased development spend of ZAR 5.1 billion, up 17 percent year-on-year.
The classifieds business has made solid progress, outpacing competition. Naspers further strengthened its position in classifieds with the recently announced transaction, subject to regulatory approval, to take a controlling stake in Avito in Russia. The retail, marketplace and travel businesses continue to make progress and are widening the gap in operating metrics relative to competitors.
The digital terrestrial television (DTT) business and the South African video-entertainment group continue to deliver customer growth and improved financials. The direct-to-home (DTH) business in sub-Saharan Africa faced headwinds, mainly from a challenging macroeconomic environment and currency weakness.
The company further said that its total customer base for video entertainment stood at 10.2 million for the period. Naspers said that it is experiencing headwinds in its traditional offline print and media business Media24, but that it is addressing costs. The company recorded revenues of ZAR 4 billion in this segment. In terms of Media24, Naspers said that reduced costs resulted in a trading profit of ZAR 202 million, but that development spend to build online initiatives was at ZAR 142 million.