Naspers' Profit Surge: E-commerce and Tencent's Strong Showing

Naspers, the global consumer internet group, has reported a staggering 90.5% jump in core headline earnings for the first half of the fiscal year. This impressive growth is largely driven by the accelerated performance of its e-commerce businesses and the strong contribution from China's Tencent. Let's delve into the factors behind this remarkable profitability boost and explore the future outlook for Naspers.

The South African technology investor has seen a significant improvement in the profitability of its e-commerce businesses, with consolidated revenue from continuing operations growing by 8% (20%) to US$6.8 billion. Despite a challenging macroeconomic environment, Naspers has managed to reduce trading losses by 21% in the second half of the year compared to the first half, demonstrating a commitment to achieving consolidated ecommerce profitability during the first half of FY25.

One of the standout performers within Naspers' portfolio is iFood, the Brazilian food delivery platform. The acquisition of the remaining 33.3% stake of iFood from Just Eat Takeaway in November 2022 has significantly contributed to Naspers' growth and profitability. iFood's sustained momentum in core restaurant food delivery businesses, coupled with targeted and disciplined investment in quick commerce and grocery marketplaces, has led to well-ahead-of-peers revenue growth and meaningful improvements in profitability.



Tencent, Naspers' largest asset, has continued to grow its core business, with revenue increasing 4% year-on-year to RMB 143.8 billion. The gaming and social media platforms remain strong, contributing to Naspers' overall profit growth. WeChat, Tencent's flagship messaging platform, has expanded its user base and monetization strategies, further boosting Naspers' earnings.



Naspers' commitment to achieving consolidated ecommerce profitability by the first half of FY25 has significantly impacted its financial performance. The company's e-commerce businesses have shown a 20% local currency growth, and trading losses have been reduced by 21% in the second half of FY23 compared to the first half. This focus on profitability is reflected in the 8% increase in consolidated revenue from continuing operations, reaching US$6.8 billion, while trading losses reduced to US$844 million. Core headline earnings, although down 48%, underscore Naspers' dedication to improving operations and bottom-line results.

In conclusion, Naspers' half-year profit nearly doubling on strong e-commerce and Tencent performance showcases the company's diversified strategy and commitment to balancing growth and profitability. As Naspers continues to invest in high-conviction growth areas and drive efficiencies, it positions itself well for future success in the competitive global consumer internet landscape.