Prosus' Strategic Asset Sales Drive Profit Surge in H1

Prosus N.V., the global consumer internet group, has reported a significant turnaround in its financial performance, swinging to a profit in the first half of the financial year. The company's strategic asset sales, including a portion of its stake in Swiggy and its position in Trip.com, have contributed to this impressive performance. By generating over US$2 billion in proceeds, Prosus has been able to strengthen its cash flow and liquidity position, as well as accelerate its growth initiatives.

In the first half, Prosus achieved a 26% increase in consolidated revenues, with e-commerce revenues reaching US$3.0 billion. This strong organic growth, coupled with the strategic asset sales, led to a 76% year-over-year increase in core headline earnings to US$3.5 billion. The company's e-commerce adjusted EBIT improved five times to US$181 million, reflecting the success of its strategic investments and asset management.



The proceeds from Prosus' asset sales have been instrumental in driving the company's growth and value creation. The listing of Swiggy at a valuation of US$11.3 billion, for instance, was facilitated by these funds. Additionally, Prosus' buyback program has created US$36 billion in value since its launch, with a 10% net asset value (NAV) per share accretion. This makes it the largest globally among tech companies relative to market capitalization.



Prosus' strategic asset sales and the subsequent reinvestment of proceeds have not only driven the company's financial performance but also highlighted its ability to manage its portfolio effectively. By generating over US$2 billion in asset sales, Prosus has been able to maintain organic growth above 20% and target US$400 million in adjusted earnings before interest and taxes from e-commerce operations.

As Prosus continues to execute on its strategic initiatives and manage its portfolio, investors should keep a close eye on the company's progress. The combination of strong organic growth, strategic asset sales, and value-creating buyback programs positions Prosus well for continued success in the global consumer internet sector.