HomeBusinessNaspers Reports Decreased Trading Loss And Increased Bottom-Line Profit In Interim Results

Naspers Reports Decreased Trading Loss And Increased Bottom-Line Profit In Interim Results

Naspers' classifieds segment also delivered a strong performance, with sustained growth and improved profitability. Consolidated revenue for the classifieds segment grew by 38% to $342 million (R6.4 billion).

Naspers, a global internet and entertainment group, has released its interim results for the six months ended 30 September 2023. The company reported a significant decrease in trading losses and a notable increase in bottom-line profit compared to the previous year.

According to the interim results, Naspers’ trading losses decreased by approximately R4.48 billion year-on-year, from $365 million (R6.78 billion) in 2022 to $124 million (R2.3 billion) in 2023. On the other hand, the company’s bottom-line profit grew by approximately 35% from $2.47 billion (R45.9 billion) to $3.34 billion (R62 billion).

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The improved financial performance can be attributed to the growth in revenue from Naspers’ classifieds, food delivery, payments, and fintech segments. During the period, the company’s revenue surpassed $3 billion (R55.72 billion).

It is important to note that the bottom-line profit figure is higher than the company’s total revenue for the period due to the disposal of assets.

Gains on partial disposal of equity-accounted investment totaled R2.86 billion (R53.1 billion), and the share of equity-account results was $1.1 billion (R20.4 billion). This can be attributed to Naspers selling Tencent shares to fund a share buyback scheme.

Naspers’ e-commerce segment experienced growth during the period. Consolidated revenue increased from $2.7 billion (R50.1 billion) in September 2022 to $2.9 billion (R53.8 billion) in September 2023.

Additionally, trading losses in the segment decreased significantly, from $270 million (R5 billion) in the previous year to $38 million (R705 million) in September 2023.

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The company’s consolidated food delivery business, which includes Delivery Hero and Swiggy, saw revenue grow to $679 million (R12.6 billion). The core food-delivery business was a key driver of this growth, with total gross merchandise value increasing by approximately 23% during the period.

Naspers’ classifieds segment also delivered a strong performance, with sustained growth and improved profitability. Consolidated revenue for the classifieds segment grew by 38% to $342 million (R6.4 billion).

This growth was supported by the European auto verticals and OLX horizontals, which grew by 46% and 30% respectively. Naspers highlighted that its OLX Europe classifieds business remains one of the fastest-growing globally, positioning it well for margin expansion.

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The Payments and Fintech segment also experienced growth, with consolidated revenue increasing by 21% to $479 million (R8.9 billion). The consolidated trading loss decreased by $62 million (R1.15 billion) to $22 million (R408 million).

Naspers expressed optimism about its future financial performance and expects to achieve profitability for the second half of the 2023/24 financial year. The company plans to invest in enhancing its ecosystems to provide value to customers while delivering returns to shareholders.

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Florence Sibiya for SurgeZirc SA
Florence Sibiya for SurgeZirc SA
Florence Sibiya is a highly dedicated and talented reporter for SurgeZirc SA Business News. With her passion for business and her commitment to delivering accurate and reliable news, she has become an invaluable asset to the team.
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