South Africa’s most valuable company expects earnings jump

Naspers expects to report strong results for the first half of its 2025 financial year as the company’s eCommerce businesses and Tencent grew significantly.

In a trading statement released on Monday, Naspers and Prosus outlined their expected earnings for the half-year through September 2024.

Naspers’ core headline earnings per share and headline earnings per share for continuing operations for the period are expected to increase by between 87.2% and 93.8% and 103.2% to 109.6%, respectively.

Prosus reported similar numbers, with core headline earnings per ordinary share N and headline earnings per ordinary share N for continuing operations expected to increase by between 84% and 93% and 93% and 102%, respectively.

The company said this was driven by the accelerated growth and improved profitability of its consolidated eCommerce businesses and equity-accounted investments, in particular Tencent.

“The group has demonstrated its continued commitment to deliver profitable growth, with consolidated eCommerce profitability in the first half of FY25 significantly exceeding that of the prior twelve months,” it said.

“We expect to continue this growth path by accelerating our pace of execution and innovation, investing with an AI-first mindset and leveraging the potential of the group’s technology ecosystem.”

Earnings per share are expected to increase during the period primarily due to the company’s improved overall profitability coupled with lower impairment charges in continuing operations. 

However, the company said this improved performance was partially offset by a lower gain from the sale of its Tencent shareholding compared to the previous period, given that fewer shares were sold in the 2025 financial year so far.

The expected changes in Naspers and Prosus’s earnings can be seen in the tables below.

Naspers

Prosus

Looking ahead

In a recent letter released on SENS, Naspers and Prosus CEO Fabricio Bloisi commemorated his first 100 days at the helm, wherein he laid out his plans to double the company’s value.

Bloisi started his term in July this year, replacing former CEO Ervin Tu, who is now the company’s president and chief investment officer.

In his letter, Bloisi reflected on his first 100 days as CEO and expressed excitement about the company’s future and its potential for significant value creation. 

He noted that Prosus, valued at around $100 billion, aims to generate an additional $100 billion in value by investing in fast-growing, profitable businesses and delivering substantial returns to shareholders. 

Over the past few months, Bloisi has engaged closely with the company’s businesses to explore opportunities for faster growth, improved profitability, and enhanced collaboration within the Prosus ecosystem. 

He said his time with the team has increased his confidence in achieving these objectives.

The CEO also outlined a series of initiatives and operational improvements aimed at positioning the company for long-term success. 

For example, a new management model has been introduced to ensure better communication and engagement across the company. 

This, coupled with new management “rituals”, is helping the group move faster, foster innovation, and create deeper connectivity between its various businesses. 

Bloisi explained that one of the main drivers of this transformation is the integration of artificial intelligence (AI) across the company’s operations. 

He cited examples from iFood and OLX, which are leveraging AI to deliver better results and promised more AI-driven advancements across the business in the near future.