Naspers Limited Today Announced Its Results for the Six Months Ended 30
Naspers Accelerating Development Spend
CAPE TOWN, South Africa -- November 27, 2012
Naspers Limited (JSE:NPN) today reported consolidated revenue of R23 billion,
a 22% increase, for the six months ended 30 September 2012. Core headline
earnings per share, considered by the board to be a good indication of
sustainable performance, increased 15% to R10.62, totalling R4,1 billion. The
internet segment remained the area of fastest growth, whilst some benefit was
gained from a weaker rand. Development costs as a result of the organic growth
of businesses increased 41% to R1,6 billion. Positive free cash flows
increased 22% to R1,7 billion.
“The group continues to grow organically, with an increasing focus on
e-commerce,” Naspers’ Chairman Ton Vosloo said. “In addition, we have invested
R4,5 billion year to date in acquiring new businesses in this area.”
Revenues from the e-commerce segment expanded robustly by 61% to R4bn. Organic
growth accounted for 27% of the total. A focus on building scale and expanding
e-commerce platforms across the value chain has trimmed trading profits by R1
billion and increased the trading loss in the sector.
After recording net growth of 393,000, the pay-television base now stands at
just over 6 million homes across 48 countries in Africa. Revenues were up by
19% to R14,4 billion, whilst trading profits grew 18% to R4 billion. Trading
margins were stable despite the upgrading of satellite infrastructure, the
expansion of online services and a roll-out of digital terrestrial television
(DTT) services across a number of sub-Saharan countries.
Print operations in South Africa were strained by the challenging economic
climate, but reported steady growth. Margins improved due to a continued focus
on managing costs.
Naspers’ share of core earnings from associates, including Tencent in China,
Mail.ru Group in Russia and Abril in Brazil, increased by 46% to R3,1 billion.
“During the next six months we’ll keep growing our e-commerce operations
across emerging markets,” Naspers’ CEO Koos Bekker said. “We intend to step up
the gas and as a result development spend will accelerate in the second half
of the year.”
Naspers’ financial director Steve Pacak added: “With development spend ramping
up and a changing business mix, future margins will trend down. The plan is,
however, to increase our absolute profits and returns over time.”
The complete results are available on the Naspers website at
This media release contains forward-looking statements as defined in the
United States Private Securities Litigation Reform Act of 1995. Words such as
“believe,” “anticipate,” “intend,” “seek,” “will,” “plan,” “could,” “may,”
“endeavour” and similar expressions are intended to identify such
forward-looking statements, but are not the exclusive means of identifying
such statements. While these forward-looking statements represent our
judgements and future expectations, a number of risks, uncertainties and other
important factors could cause actual developments and results to differ
materially from our expectations. These include numerous factors that could
adversely affect our businesses and financial performance. We are not under
any obligation to (and expressly disclaim any such obligation to) update or
alter our forward-looking statements whether as a result of new information,
future events or otherwise. Investors are cautioned not to place undue
reliance on any forward-looking statements contained herein.
Meloy Horn, Head of Investor Relations
Tel: +27 11 289 3320 or +27 11 289 4446
Mobile: +27 82 772 7123
Steve Pacak, Financial Director
Tel: +27 21 406 3585 or +27 21 406 2480
Mobile: +27 83 250 0006
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