|[June 23, 2014]
Naspers Limited Today Announced Its Results for the Year Ended 31 March 2014
CAPE TOWN, South Africa --(Business Wire)--
Naspers (News - Alert) (JSE: NPN) today announced financial results for
the year ended 31 March 2014. Consolidated revenue grew a robust 26% to
R62,7bn, driven by both internet and pay-television businesses. Growth
was funded mainly by development spend, which accelerated 79% to R7,7bn.
This step-up limited core headline earnings, considered by the board to
be an indication of sustainable earnings performance, to R8,6bn,
marginally higher than last year. Core headline earnings per share
amounted to R21,81 and a dividend increase of 10% to R4,25 per share has
"We had a lively year with progress across several businesses," said
Naspers chair, Ton Vosloo. "Our established businesses performed very
well and we stepped up our investment in new growth opportunities,
particularly in ecommerce."
Driven by strong growth in etail, revenues from ecommerce activities
increased 64% to R20,3bn. "As this is an area of expansion, development
spend rose as we scaled operations, increased the number of focus
markets in classifieds and strengthened our talent pool. Consequently
the trading loss widened to R5,3bn," said Basil Sgourdos, new CFO of the
group. The year saw improving profitability from the Allegro marketplace
business and some classifieds and online price-comparison operations.
Several classifieds markets evidenced growth head of competitors.
The pay television business, which covers 50 countries on the African
continent, reported 20% growth in revenues to R36,3bn. Total subscribers
increased by a record 1,3 million, taking the base to over 8 million
homes. Continued expansion of digital terrestrial (DTT) services, more
investment in local content and an increase in online service offerings
resulted in 13% growth in trading profit to R8,5bn.
The print media remains exposed to challenging global conditions and
experienced a tough year. Revenues were flat and margins declined.
Naspers's share of core earnings from associates, including Tencent in
China and Mail.ru Group in Russia, increased by 46% to R10,2bn.
"Our goal is to invest in growth businesses that will deliver value over
the long term. With this in mind, we will continue to invest heavily for
organic expansion and may also acquire new businesses within our fields
of focus," said new Naspers CEO, Bob van Dijk. "Our belief is that,
through a combination of attractive markets with development potential
and appealing customer product offerings such as online classifieds,
etail and DTT, we have realistic, solid prospects for growth and value
creation over time."
The complete results are available on the Naspers website at http://www.naspers.com.
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 judgments 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 to
(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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