Naspers Limited Today Announced Its Results for the Year Ended 31 March 2016
24 Junio 2016 - 11:00AM
Business Wire
Naspers (JSE: NPN; LSE: NPSN) today announced financial results
for the year ended 31 March 2016. Core headline earnings, which the
board regards as the best indicator of sustainable earnings, grew
21% (49% in local currency) to US$1.2bn. Revenues as measured on an
economic interest basis, including the proportionate contribution
from associates and joint ventures, grew 6% (22% in local currency)
to US$12.2bn. This was driven by growth from Tencent, as well as
the classifieds, travel and etail segments within ecommerce. Some
77% of revenues were generated outside of South Africa. Development
spend was stable at US$961m and trading profit increased a healthy
18% (38% in local currency) to US$2.2bn. The board has proposed,
for approval by our shareholders, a dividend of 520 South African
cents per share, up 11% year on year.
As announced in April this year, and in view of the growing
international spread of our business, Naspers is now reporting in
United States dollar (US dollar). The financial performances of the
businesses were consolidated in their respective functional
currencies and translated into US dollar. The weakness in
emerging-market currencies over the past year means year on year
performance was dampened by the translation impact. Where relevant,
the performance in local currencies is quoted in brackets after the
equivalent International Financial Reporting Standards metrics.
Unlike the severe earnings impact of falling currencies on the
video-entertainment segment, in ecommerce this impact is less of a
concern given the group’s diverse geographic spread, plus the fact
that (unlike in video-entertainment) costs are largely incurred in
local currencies.
“Overall the group delivered a satisfactory performance,” said
Naspers chair Koos Bekker. “While we will continue seeking new
growth opportunities, in some sectors of ecommerce we are starting
to benefit from scale. Deteriorating currencies mean that the
video- entertainment business is under considerable pressure.”
The internet segment recorded a healthy year, benefiting from
growth in Tencent and ecommerce. Revenues were up 18% (31%) year on
year to US$8.2bn, while trading profit increased 38% to US$1.6bn.
This segment now accounts for 68% of group turnover.
“Our ecommerce businesses benefit both from the continued growth
of existing businesses and investments in new models,” said CEO Bob
van Dijk. “In classifieds, monetisation plans are on track and
resulted in a reduction in trading losses for the core portfolio,
whilst Avito is delivering ahead of plan. In etail, eMAG expanded
with improved operating leverage.”
The video-entertainment segment generated revenues of US$3.4bn,
down 11% year on year. As customers are billed in local currencies,
the rapid weakening of currencies in many African markets, driven
by a rout in commodity prices, resulted in lower US dollar
revenues. As a significant portion of costs are US
dollar-denominated, the combination of lower revenues and a higher
cost base (partly due to increased competition), saw trading profit
decreasing by 17% to US$610m.
The South African video-entertainment customer base grew by
325,000 homes, but the weakened South African rand and a poor
macroeconomic outlook could reduce growth and profitability in the
future. In sub-Saharan Africa, substantial price increases to
offset the impact of currency declines plus weaker consumer
sentiment resulted in a loss of 288 000 direct-to-home (DTH)
customers. To reinvigorate growth, the focus is now on managing and
absorbing costs ourselves where possible, to minimise further price
increases to the consumer. We are also strengthening content in the
mid- and lower segments. At year-end, the digital terrestrial
television (DTT) customer base reached 2.4m homes and development
spend has declined. Our new subscription video-on demand service,
ShowMax, had a good start in South Africa with a deeper and more
customised content offering than competitors and a focus on service
delivery.
Consolidated free cash outflow of US$38m was recorded,
marginally higher than last year, as lower capital expenditure, a
reduction in development spend and higher dividends from associates
were offset by weaker cash flow from the sub-Saharan
video-entertainment business.
“In the year ahead, the focus will be on continuing to deliver
topline growth while scaling the more established ecommerce
businesses,” said Naspers CFO, Basil Sgourdos. “We’ll invest
further in long-term growth opportunities such as ShowMax, letgo
and ibibo. In video- entertainment, the loss of DTH subscribers and
the effects of weakening currencies in sub-Saharan Africa will have
a significant downward impact on earnings and cash flows in the
year ahead. It could take some time before the plans to reposition
this business will have a positive impact.”
The complete results are available on the Naspers website at
http://www.naspers.com.
IMPORTANT INFORMATION
This media release contains forward-looking statements as
defined in the United States Private Securities Litigation Reform
Act of 1995. Words such as “believe”, “anticipate”, “intend”,
“seek”, “will”, “plan”, “could”, “may”, “endeavour” and similar
expressions are intended to identify such forward-looking
statements, but are not the exclusive means of identifying such
statements. While these forward-looking statements represent our
judgements and future expectations, a number of risks,
uncertainties and other important factors could cause actual
developments and results to differ materially from our
expectations. These include numerous factors that could adversely
affect our businesses and financial performance. We are not under
any obligation (and expressly disclaim any such obligation) to
update or alter our forward-looking statements whether as a result
of new information, future events or otherwise. Investors are
cautioned not to place undue reliance on any forward-looking
statements contained herein.
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version on businesswire.com: http://www.businesswire.com/news/home/20160624005534/en/
Naspers LimitedMeloy Horn, Tel: +27 11 289 3320+27
11 289 4446Mobile: +27 82 772 7123Head of investor relationsorBasil
Sgourdos, Tel: +852 2847 3365Mobile: +852 9080 5155Chief
financial officer
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