Revenue was buoyed during the year thanks to its investments in Internet businesses and pay-television, says publishing house Naspers.
The group yesterday released its results for the year to March and said revenue expanded 18%, to R33 billion. “Worldwide, the Internet industry continued its expansion from which most of our Internet businesses benefited,” Naspers says.
Naspers notes its pay-television unit proved to be resilient, despite an increasingly competitive environment, although rising costs placed margins under pressure during the year. Naspers added 977 000 subscribers to its base during the year, driven by the Soccer World Cup.
Its Internet division saw revenue leap 47%, to R12 billion, during the year to March, while its pay-television segment grew 19%, to R21 billion, still accounting for more than half the company's revenue.
Its technology division grew 2%, to R1.2 billion, while its print division, which has been under pressure due to slower advertising spending, grew 5%, to R10.8 billion.
During the past year, Naspers acquired a 29% interest in Digital Sky Technologies, which was renamed Mail.ru Group and listed on the London Stock Exchange, in November. However, despite the growth in its Internet unit, Napers says businesses in this sector are selling at inflated values and “good value is difficult to find these days”.
As a result, it will focus on growing its business organically and developing its own technologies, which may dampen earnings in the year ahead. “We believe this strategy is sound and will stimulate long-term growth prospects,” the group says.
Naspers has Internet interests in China and Russia, and e-commerce operations in Europe and Brazil.
Share