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Naspers expects full-year earnings dip

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JSE-listed internet giant Naspers is expecting a drop in earnings for the year ended 31 March.

The company this week released a trading update, saying it is finalising its summarised consolidated financial statements for the period.

It will announce its results on Monday, 27 June.

In a year marked with continued global turmoil and uncertainty, which has made for a turbulent operating environment, financial year 2022 was a year of progress for Naspers, the company says.

In a statement to shareholders, Naspers notes: “We remained focused on executing our long-term strategy and delivering strong operational growth across our core segments. At the same time, we made strategic investments and laid the foundation for future growth across the portfolio.

“We invested $6.2 billion in new acquisitions and existing businesses to expand our ecosystems, mainly in edtech and food delivery, and to position the business for continued long-term growth in line with the group’s long-term strategy.”

According to the firm, following the share exchange transaction, Naspers has 215 454 129 shares in issue.

The weighted average number of shares for A and N shareholders was 418 334 828 for the year ended 31 March 2021, and net weighted average number of shares that participated in the economic interest of Naspers was 289 776 608.

It explains the significant increase in earnings per share is due to a gain of $12.3 billion realised on the sale of a 2% interest in Tencent in April 2021. This gain is excluded from headline and core headline earnings per share.

Headline earnings is expected to decrease in the current year, mainly due to the decrease in contribution to headline earnings from associates, including lower fair value gains in the current year, continued investment in growth adjacencies in the e-commerce businesses and increased net finance cost.

“Shareholders are reminded that the board considers core headline earnings an appropriate indicator of the operating performance of the group, as it adjusts for non-operational items,” says Naspers.

It adds that core headline earnings per share for the year are expected to decrease by between 122c and 65c per share (between 15% and 8%).

“This is primarily due to continued investment in growth adjacencies in our e-commerce businesses, a decreased contribution from Tencent due to the 2% divestment earlier this year and increased net finance cost,” it concludes.

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11 Aug
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