Tag Archives: Naspers

Naspers goes head-to-head with Netflix; Market ignores Gordhan arrest rumour

Naspers ended sharply higher on Friday, with the group adding 3.51%, to settle at R2002.94 per share. During the session, Naspers confirmed it had expanded ShowMax, its video-streaming service, into 36 new sub-Saharan Africa countries.  As it stands, ShowMax is now available in 65 countries after launching in August and has doubled its number of subscribers in the first 4 months of 2016 as the company attempts to challenge (and catch-up) to Netflix. In contrast, Netflix expanded into 130 countries in January and has approximately 34.5mn subscribers outside of the US.

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Naspers: Core Headline Earnings up 45%

In its results for the year ended 30 September 2015, NPN saw consolidated revenue increase by 10% to R37.8bn, driven by good growth in the eCommerce segment. However, in U.S. dollar terms, consolidated revenue came in at $3bn, a decrease of 7% compared with the previous year. Revenue growth from the internet-segment remained strong at 33%, with the segment now accounting for 64% of group revenues, up from 60% a year ago. In addition, businesses outside of SA now contribute 75% of revenues, up from 70% in 2014. Over the period, consolidated development spend declined by 13% compared to previous period. Meanwhile, trading profit grew by 34% to R15.3bn, backed by solid earnings contributions from Tencent, South African video entertainment and the Allegro marketplace. The group’s share of the results of the equity-accounted investments, mainly Tencent and Mail.ru, was R8bn for the period, and includes non-recurring gains of R1.5bn. Lastly, the group saw a 45% increase in the core headline earnings to R8.8bn, with Tencent and the South Africa video-entertainment business the main contributors. In U.S. dollar terms, core headline earnings increased by 22% to $693mn.
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