Naspers expects higher headline profit on e-commerce recovery, Tencent

Naspers and Prosus expect higher annual headline earnings, thanks in part to “increased profitability” of their e-commerce businesses.

Naspers owns a majority stake in its subsidiary and consumer internet company Prosus, which accounts for almost all of its profits. Prosus owns shares in Chinese technology giant Tencent and also invests in online classifieds, food delivery, payments, and fintech and education technologies. It has shares in companies such as iFood in Brazil, PayU and Swiggy in India.

The group had set itself the target of achieving consolidated profitability of its e-commerce businesses, which had recorded heavy trading losses, in the first half of financial year 2025. However, it was later stated that this would happen earlier, by the end of March 2024.

“We are on track to deliver on our promises of consolidated e-commerce profitability and cash flow generation,” Naspers said in a trading note on Tuesday.

“These factors, combined with the improved profitability of our investments and the continuation of our share repurchase program, resulted in significant growth in underlying earnings per share.”

Naspers owns about 25% of Tencent, which reported a 62% increase in net income last month thanks to rising advertising revenues. In recent months, the group has been reducing its stake in Tencent, using the proceeds to buy back its own shares.

Naspers expects basic earnings per share (excluding certain non-operating items) from continuing operations to more than double (+107% to +113.4%) in the year to March. In addition to the increase in profitability of its e-commerce and Tencent businesses, the increase in net interest income also improved its earnings.

Last year, Prosus sold or closed all of its OLX Autos companies, which are presented as discontinued operations.

Last month, Fabricio Bloisi (47) became the new CEO of Naspers and Prosus. He will replace Bob van Dijk, who resigned in September. Bloisi was previously head of the group’s iFood division.

Naspers shares have gained almost 40% this year.

News24 belongs to the Media24 stable owned by Naspers.