Africa’s largest company by maeket value, South Africa's Naspers which has interests spanning Internet, media and entertainment industries have announced that their core headline earnings grew 31 percent to $914 million. Along with this the company's revenues increased 16 percent year on year to $6,8 billion excluding acquisitions, disposals and currency movements.
Revenue growth of 27 percent was experienced by the company with businesses outside South Africa contributing 80 percent of revenues, up from 75 percent a year ago, highlighting the impact on their financials of their stake in China's TenCent Holdings.
“We experienced a satisfactory first six months to the financial year. The ecommerce businesses and Tencent performed well, while video entertainment and print did their best in a pretty tough environment.”Koos Bekker, Naspers ChairpersonNaspers further explained that currency fluctuations impacted its results as the firm buys video entertainment licenses for DStv, GOtv, ShowMax in US Dollars but charges its subscribers in their local currencies affecting both its revenues and profitability.
Good news for the company is that their e-commerce businesses seemed least affected by currency fluctuations with the classifieds businesses leading the pack in terms of performance.
“Classifieds delivered strong results across the portfolio, boosted in particular by Avito. Our retail, travel and payments businesses all performed well.”Bob van Dijk, Naspers CEO
Naspers' digital terrestrial television (DTT) business and the African video entertainment group experienced the impact of weak currencies and reported revenues of $1,6 billion down 8% and trading profit dropped 43% to US$226m. However, both its DTT and African entertainment group reported 11 million subscribers.
Media24 experienced declines with their print business while ShowMax is reported to be growing.