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Naspers flags lower earnings as lockdowns hit Tencent

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The media company expects core headline earnings to decline due to the pandemic’s impact on its largest equity-accounted associate

Global internet and media company Naspers flagged a drop in its key performance metric in its next annual results, because of lower profitability of its equity-accounted associates — an entity over which a company has significant influence but does not control — such as Chinese internet giant Tencent.

The total impact of these equity-accounted associates amounted to $2.3bn as Tencent, Naspers’ largest equity-accounted associate, took a knock from the impact of Covid-19 lockdowns and regulations in China...A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and TimesLive Premium.

 

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