Naspers Limited (JSE: NPN) Today Announced Its Results for the Six Months Ended 30 September 2013
November 26 2013 - 12:44AM
Business Wire
Ramping Up Investment in Growth
Naspers chair Ton Vosloo today announced a 28% increase in
consolidated revenue to R28,8 bn for the six months ended 30
September. This growth was driven to a large extent by the offshore
internet businesses and boosted by a depreciating rand. Core
headline earnings, considered by the board to be an indication of
sustainable earnings performance, was up 16% on the previous year
to R12,48 per share (R4,9bn in total). This despite investing R3bn
in developing future growth opportunities (referred to as
development spend and expensed through the income statement).
Positive free cash flow amounted to R787m.
“In recent times the composition of Naspers has changed.
Offshore revenues now exceed those generated in South Africa,
whilst internet has surpassed pay-TV as our main business,” Naspers
CEO Koos Bekker said. “We are busy building ecommerce platforms, in
particular online classifieds, and are rolling out digital
terrestrial television (DTT) across more cities in West and East
Africa.”
eCommerce revenues almost doubled to R7,9bn. Investment in
marketing, people and product cost R2,3bn and led to an aggregate
trading loss of R1,8bn in this segment. The classified businesses
in most markets, Brazil and India in particular, widened their lead
over competitors. The eTail segment delivered strong revenue
growth, broadened categories for sale and improved fulfillment
times. However, flash fashion lagged and some investments were
impaired.
The pay television business grew revenues 18% to R17,1 bn.
Subscribers increased by 560 000 and now totals 7,3m households
across 48 countries on the African continent. Due to expanding DTT
services, as well as the costs of launching new channels and
services, trading profits nudged up by only 11% to R4,5 bn.
Globally, conditions remained challenging for print. Media24
managed some top line and profit growth and continues to reinvent
itself by launching digital initiatives. The investment in Abril
was further impaired.
Naspers’s share of core earnings from associates, including
Tencent in China and Mail.ru Group in Russia, increased by 47% to
R4,5bn.
“The pace of investment in new growth opportunities will
accelerate sharply over the next months. We expect development
spend of about R7,0bn for the full financial year to March,
compared to R4,3bn last year,” Naspers financial director Steve
Pacak said. He added: “As this investment is made largely through
the income statement, it will have a dampening effect on both
earnings and cash flows. However, we expect these growth
opportunities to deliver shareholder value over the long term.”
The complete results are available on the Naspers website at
http://www.naspers.com.
IMPORTANT INFORMATION
This media release contains forward-looking statements as
defined in the United States Private Securities Litigation Reform
Act of 1995. Words such as “believe,” “anticipate,” “intend,”
“seek,” “will,” “plan,” “could,” “may,” “endeavour” and similar
expressions are intended to identify such forward-looking
statements, but are not the exclusive means of identifying such
statements. While these forward-looking statements represent our
judgements and future expectations, a number of risks,
uncertainties and other important factors could cause actual
developments and results to differ materially from our
expectations. These include numerous factors that could adversely
affect our businesses and financial performance. We are not under
any obligation to (and expressly disclaim any such obligation to)
update or alter our forward-looking statements whether as a result
of new information, future events or otherwise. Investors are
cautioned not to place undue reliance on any forward-looking
statements contained herein.
For more information contact:Naspers
LimitedMeloy Horn, Head of Investor RelationsTel: +27 11
289 3320+27 11 289 4446Mobile: +27 82 772 7123orSteve Pacak,
Financial DirectorTel: +27 21 406 3585+27 21 406 2480Mobile:
+27 83 250 0006
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