Prosus issues profit warning as Tencent’s earnings decline

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Prosus issued a profit warning for its fiscal 2023 after a decline in profit at Tencent Holdings, the Chinese tech giant in which the Dutch investment firm owns a 26% stake. Moneyweb Tencent

Prosus issued a profit warning for its fiscal 2023 after a decline in profit at Tencent Holdings, the Chinese tech giant in which the Dutch investment firm owns a 26% stake. Core headline earnings per share from continuing operations in the year ending March 31 are expected to fall by between 21% and 28%, or 50 cents to 68 cents, Prosus said in a trading statement Wednesday.

Prosus has been reducing its stake in Tencent to fund a share buyback, in an effort to create additional value for shareholders and reduce the discount between the stake owned in Tencent and the rest of the parts. It has reduced its holding from 29% over the last year. Read: Prosus cuts Tencent stake in latest pullback from Chinese firms Prosus is expected to publish its fiscal 2023 results on June 27. Its South Africa-based parent Naspers also issued a profit warning. Prosus shares fell 1.

 

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