Naspers Profit Rises up to 25% as Weaker Rand Boosts EarningsChris Spillane
Naspers Ltd., Africa’s largest media group, said full-year earnings per share rose as much as 25 percent after the depreciation of the rand helped boost its overseas profit.
So-called headline earnings per share, excluding non-recurring and non-operational items, were 15 percent to 25 percent higher in the 12 months through March compared with 1.85 rand a year earlier, the Cape Town-based company said in a statement today.
“The majority of our core headline earnings are generated from operations offshore,” the company said. “The currency-translation effect of the depreciation of the rand relative to the prior period will play a significant role in boosting expected headline earnings growth.”
Naspers, which owns stakes in Russian social networking and gaming site Mail.ru Group Ltd. and Hong Kong-based Tencent Holdings Ltd., said earnings per share including one-time items will be 100 percent to 110 percent higher than the previous period’s 770 cents because of the sale of a portion of Mail.ru’s stake in Facebook Inc.
The rand has weakened 16 percent against the dollar this year, making it the worst performer of 16 major currencies tracked by Bloomberg.