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.
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.
Continue reading Naspers: Core Headline Earnings up 45%
Everyone knows Naspers is crazy expensive. But everyone keeps on buying it. And, for good or ill, I’m no exception.