Media giant Naspers turned over R50.2 billion in the year to March, and - for what appears to be the first time - its Internet operations have contributed the bulk of its revenue, while its traditional mainstay was pay television.
However, on an earnings before interest, tax, depreciation and amortisation basis, pay television still contributes more than its Internet segment.
Naspers says in its results commentary that it intends to expand e-commerce businesses across emerging markets and to build its pay television subscriber base across Africa.
"A significant shift is visible in user activity moving from the personal computer to mobile devices such as smartphones and tablets. This trend simultaneously disrupts existing business models and creates new opportunities," it says.
Naspers said revenue growth came from organic expansion of existing businesses and acquisitions, supplemented by the depreciation of the rand, which had a positive effect when foreign revenues were converted into rands.
Development spend accelerated to R4.3 billion, from R2.8 billion, the bulk of which went into growing its e-commerce business and the rollout of pay television services across Africa.
Online growth
Overall, Internet revenue grew 80%, to R34.6 billon, while trading profits gained 44%, to R6.2 billion. Naspers says Tencent is growing in a highly competitive environment.
The listed publishing and Internet giant owns a 34% stake in the Chinese company, through its MIH subsidiary. Tencent provides Internet and mobile and telecommunications value-added services in China.
Naspers says Internet users in China grew by some 12%, to 564 million, at the end of 2012. "Tencent continues to build its young e-commerce businesses and achieved growth both in transaction volume and revenues."
Mail.ru had a "good" year with revenue growing 40% in local currency, says Naspers.
The media company adds that it believes online shopping is a global consumer trend and anticipates that affordable tablets and smartphones will accelerate the uptake of services in its markets.
E-commerce revenue doubled to R11.4 billion, through a combination of organic growth and a few acquisitions, it says. "We extended the breadth of our products, with particular emphasis on e-tailing and online classifieds."
Naspers notes that, as the unit is in the "building" phase, it is currently making a loss and does not expect profits in the aggregate for several more years.
Pay television revenue gained 20%, at R30.3 billion, as growth came mostly from an increase in the net subscriber base, which gained 1.1 million to reach 6.7 million houses in 48 - out of 54 - countries in Africa.
Trading profits grew 18%, to R7.6 billion, despite the increased development spend on infrastructure. This year saw the launch of seven local entertainment channels as well as the Africa Magic portfolio of channels, the addition of two local community channels, and the M-Net movie genre channels in SA.
A further six high-definition channels were added. In addition, more affordable digital terrestrial television services were launched under the GOtv brand, which now operates in eight countries, reaching 376 000 households.
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