Naspers is accelerating the pace of its investment in the digital space, but warns this will dampen earnings in the full year.
The group says it is building e-commerce platforms, especially online classifieds, and is rolling out digital terrestrial television across many cities in Africa. "The pace of investment in these opportunities will accelerate sharply in the second half of the current financial year."
Naspers anticipates spending to grow from R4.3 billion last year to a total of R7 billion by the end of March. This information is contained in the group's interim report, which notes development spend gained 87% year-on-year in the first half.
In the first six months, to September, Naspers' Internet unit gained 76% year-on-year, to end the period with revenue of R24.9 billion, while the pay-television unit grew 18%, to R17 billion. However, pay-TV is still a larger contributor on an earnings before interest, tax, depreciation and amortisation basis.
The group also benefited from its stakes in Tencent, which grew revenue 70%, to R15.3 billion, and Russian operation Mail.ru, which gained 53%, to R1.1 billion. Overall, the group reported revenue of R28.8 billion, and a net profit of R3.4 billion.
Naspers' e-commerce unit almost doubled revenue to R7.9 billion, but it reported a R1.8 billion trading loss. Its classifieds business saw a two-fold increase in page views, and its e-tailing segment improved its top line, it notes.
Naspers also gained R1.3 billion after Mail.ru sold shares in Facebook, it says. The group now earns most of its income from outside of SA, and from its Internet businesses, which have overtaken revenue from its pay-television unit.
Its pay-television unit added 560 000 viewers, to reach 7.3 million homes in 48 countries. Naspers says trading profits lagged due to its investment in digital television, and only gained 11%, to R4.5 billion.
Naspers' digital television platform, GOtv, now operates in eight African countries, with 547 000 paying households.