Prosus Earnings Surge on E-Commerce and Tencent Holdings Growth

Prosus NV, a subsidiary of Naspers Ltd., expects its earnings per share to nearly double in the last fiscal year due to growth in its e-commerce businesses and the surge in value of its holding in Tencent Holdings Ltd. The e-commerce division's profit is set to exceed $435 million, surpassing its earlier target for the 2025 financial year. OLX and iFood, two of the fastest-growing e-commerce companies in Prosus, have seen significant growth in adjusted earnings before interest and taxes.

Prosus NV, a subsidiary of Naspers Ltd., has reported a significant increase in its earnings per share (EPS) for the last fiscal year, largely driven by robust growth in its e-commerce businesses and the surge in value of its holding in Tencent Holdings Ltd. The company's e-commerce division is expected to generate a profit of $435 million, surpassing its earlier target for the 2025 financial year.

The growth in Prosus's e-commerce division is particularly notable, with OLX and iFood, two of the fastest-growing e-commerce companies under Prosus, reporting substantial increases in adjusted earnings before interest and taxes (EBIT). These positive developments reflect the company's strategic investments and acquisitions in the e-commerce sector, which have contributed to its overall financial performance.

Prosus's CEO, Fabricio Bloisi, has emphasized the company's ambition to become a leading lifestyle technology company outside the US and Asia. The acquisition of Just Eat Takeaway.com, which has made Prosus the fourth largest food delivery group globally, is a significant step towards this goal. The deal, valued at €4.1 billion, has also contributed to Prosus's financial performance by expanding its reach and diversifying its revenue streams.

Despite these positive developments, Prosus faces several challenges. The company's stock has experienced volatility, with significant fluctuations in investor sentiment. Additionally, large one-off items have impacted financial results, making it difficult to assess the company's underlying performance. However, Prosus's strong financial health and the potential for future growth in its e-commerce and internet businesses offer promising prospects for investors.

References:
[1] https://stockanalysis.com/quote/ams/PRX/
[2] https://simplywall.st/stocks/nl/retail/ams-prx/prosus-shares