Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      MultiChoice: We can’t afford to compete without help

      17 July 2025

      The internet’s weakest link is under the ocean

      17 July 2025

      AI misuse shakes South African courtrooms

      17 July 2025

      Boom gates go hi-tech at South African malls

      17 July 2025

      Megayachts and mansions: the lavish life of 80-year-old Larry Ellison

      17 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Editor's pick » Naspers results: what you need to know

    Naspers results: what you need to know

    By Sasha Planting30 June 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    tencent-640

    Naspers’s video entertainment and Internet businesses showed strong growth in revenue in the year to March 2015, but earnings were once again underpinned by Chinese Internet group Tencent.

    This as the group continues to prioritise investment in its TV and e-commerce businesses over short-term profits. It invested R10,7 billion across the business, increasing its stake in equity-accounted investments Souq, Konga and Indian e-commerce player Flipkart, and accelerating its investment in the roll-out of digital terrestrial TV, among other investments. All told, development spend was 33% more than last year.

    The company announced a 30% rise in core headline earnings to R11,2bn for the year ended March 2015, off a 17% rise in revenue to R73bn.

    The Internet businesses delivered a mixed performance, ultimately offering up R13bn of trading profit, up from R6,6bn last year. Within this, Tencent delivered profits of R17bn, up by 96%, although this figure is slightly distorted by the sale of certain investments.

    Tencent’s decision to concentrate on the provision of mobile services is paying off handsomely with mobile Internet users now accounting for 85% of total Internet users in China.

    Mail.ru delivered profits of R1,1bn, down 2% on the previous year, which is admirable considering the turbulent political and economic environment in Russia.

    Tencent’s stellar growth continues to prop up Naspers’ diverse e-commerce businesses, which span at least 40 countries, and which returned a R6bn loss, 14% more than the previous year. However, this is largely self-inflicted as the group is determined to deliver a “superior” customer experience that is ahead of its competitors. As such, R8bn of the R10bn investment in development was diverted into this sector.

    On a positive note, revenue within this grouping was up by 36% to R27,8bn.

    Naspers continued with its drive to become a substantial player in the online classifieds sector and concluded agreements with Norwegian-based Schibsted Media Group, Telenor Holdings and Singapore Press Holdings Limited, covering classifieds assets in Latin America, Southeast Asia and Eastern Europe.

    In March its main brand, OLX, served 240m active users worldwide and garnered 34m visits per day on average, a growth of 33% year on year. While mobile is not as dominant globally as it is in China, about 54% of traffic comes from mobile and, in some markets, it is more than 80%.

    digital-tv-640
    MultiChoice is spending billions building out its digital terrestrial television business

    The video entertainment segment (previously the pay-TV division) produced another consistent performance, generating revenues of R42,4bn — up by 17% year on year.

    Development spend increased by 31% to R2,4bn as MultiChoice builds out its digital terrestrial television (DTT) services, resulting in trading profit contracting by 6% to R8bn.

    This division now provides entertainment to about 10,2m homes across Africa. This comprises 2,2m DTT subscribers and almost 8m direct-to-home satellite service subscribers.

    Naspers notes that competition from international online players with global reach, such as Netflix, Amazon and Google, is increasing. In this regard, MultiChoice is investing in its online offering, expanding its delivery platforms and improving products and services. The DStv Explora personal video recorder is a differentiator and became Internet-connected in November 2014.

    The print media segment saw the listing of printing business, Novus, in March. The group received proceeds of R1,1bn from the listing. The segment managed marginal revenue growth.

    However, trading profit declined to R314m (2014: R606m) as the print industry continues to decline. Media24 is also investing in Internet and e-commerce opportunities.

    Impairment losses of R684m were recognised, mainly relating to broadcasting equipment and intangible assets.

    Net interest incurred on borrowings amounted to R1,6bn, up from R1,3bn in the previous year, thanks to a weaker rand and additional drawdowns to fund acquisitions and development spend.

    Gearing now stands at 30%, excluding transponder leases and non-interest-bearing liabilities.

    Naspers declared a dividend of 470c per listed N ordinary share, and 94c per unlisted A ordinary share.

    The share ended the day down by 4,1% at R1 839,96.

    • This article was first published on Moneyweb and is republished here with permission


    DStv DStv Explora Flipkart Konga MultiChoice Naspers Novus Souq Tencent
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTime for SA to debate online censorship
    Next Article SA’s new drone regulations explained

    Related Posts

    MultiChoice: We can’t afford to compete without help

    17 July 2025

    South Africa loosens media ownership rules – but keeps one hand on the remote

    16 July 2025

    South Africa begins complex job of overhauling media laws

    13 July 2025
    Company News

    SA businesses embrace gen AI – but strategy and skills are lagging

    17 July 2025

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.