Prosus's Profit Machine Roars to Life: Buy Now Before the AI Ecosystem Payday!

The numbers are in, and Prosus N.V. (AMS:PRX) has just thrown down the gauntlet in the global e-commerce arena. A 12X surge in EBIT, positive free cash flow for the first time, and game-changing acquisitions like Despegar and Just Eat Takeaway.com have this stock primed for a breakout. This isn't just growth—it's a full-blown transformation. Let me break down why this Dutch tech titan is a must-buy for 2025 and beyond.

The EBIT Explosion: Where the Rubber Meets the Road

Prosus's Adjusted EBIT (aEBIT) for FY2025 hit $443 million, a staggering 12-fold increase from previous years. This isn't just a “good quarter”—it's a regime change. Let's dissect the fuel:

1. iFood (Food Delivery): The star of the show. With a 178% aEBIT jump to $226 million, this platform is dominating Latin America. Its Clube loyalty program and AI tool AnotaAI have turbocharged retention and GMV (up 32%). The addition of 316 dark stores for Swiggy (its Indian unit) also boosted quick-commerce GMV by 101%.

2. OLX (Classifieds): Margins expanded to 35%, with aEBIT soaring 61% to $270 million. Motors and real estate verticals are cash cows, and the move into Turkey and South Africa is paying off.

3. Etail (eMAG): Finally profitable after years of investment! Its aEBIT improved by $40 million to $14 million, even with headwinds in Hungary. Romania's growth is a win for the region.

4. Payments (PayU & Iyzico): PayU's credit business surged 91% in revenue, and Iyzico's 87% revenue growth (to $288 million) shows the power of fintech in high-growth markets.

The Ecommerce segment's revenue hit $6.2 billion, up 21%, while the group's free cash flow turned positive by $513 million—no small feat excluding Tencent's dividends. This isn't fluff; this is cash on the table.

The AI Play: Why This Isn't Just a Tech Gimmick

Prosus isn't just buying startups—it's building an AI-native ecosystem. The $7.8 billion poured into AI startups isn't charity; it's strategic. Take Stack Overflow's AI APIs, which are now powering developer tools, or Swiggy's dark-store network optimized by machine learning. The Just Eat Takeaway.com acquisition (in progress) will create a European food-delivery juggernaut, while Despegar adds critical scale to travel—a sector bouncing back post-pandemic.

This vertical integration is the real kicker. By owning food delivery, classifieds, payments, and now travel, Prosus can cross-sell data, reduce costs, and lock in users. The “AI-first mindset” isn't just buzzwords—it's a moat against rivals.

Cash, Dividends, and Buybacks: The Shareholder Love Fest

Prosus isn't hoarding cash; it's returning it. A 100% dividend hike to €0.20/share and $50 billion in buybacks since 2020 have boosted its net asset value (NAV) per share by 15%. The balance sheet is rock solid ($18.3 billion in cash), and the $10 billion reserved for new investments means growth won't stall.

Risks? Sure, But They're Manageable

Regulatory hurdles in India's payments sector and macroeconomic headwinds in emerging markets are real. But Prosus's track record of navigating these (see PayU's rebound post-April 2024) gives me confidence. The $400 million EBIT target for FY2025 is now in sight, and the path to $100 billion valuation (excluding Tencent) is clearer than ever.

Bottom Line: Buy Prosus Now—This Is a Once-in-a-Decade Play

The data screams buy. With free cash flow positive, EBIT growing at 12X, and AI-driven acquisitions fueling ecosystem dominance, Prosus is set to capitalize on the global e-commerce boom. Even a 20% discount to its $100 billion NAV target makes this a steal.

Action Item: Load up on Prosus while it's still undervalued. The AI revolution and regional growth won't wait—this stock is primed to soar.

Disclosure: Analysis based on public financial reports. Always do your own research.