COMPANY RESULTS: Naspers pumps money into ecommerce — but Takealot takes a pummelling

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Naspers CEO Bob van Dijk says the group will remain committed to its ecommerce portfolio — and especially Tencent — for a long time to come.

A day after issuing a trading update warning of a significant decline in half-year profit, Naspers and its subsidiary Prosus published results for the six months ending 30 September, intimating that the worst was behind the group as it had channelled resources into profitable entities.

Shortly after the JSE’s closing on Tuesday, Prosus gave an update, saying it had bought 613,279 Naspers shares worth just over R1.53-billion, as part of an open-ended share repurchase programme announced earlier this year to offload Tencent shares and “unlock immediate value for shareholders”. Last week, Reuters reported that Tencent planned to distribute $20-billion of stock in meal delivery giant Meituan in the new year. This triggered a selloff of Chinese internet stocks as investors feared more divestments by the online gaming company were in the offing.

Naspers’ revenue is up 9% to $17-billion, but group trading profit declined by 38% to $1.4-billion due to a lower contribution from Tencent and investment in ecommerce extensions. PayU — a Netherlands-based payment service provider to online merchants — has delivered good results, growing payment volumes and pursuing additional opportunities in credit and digital banking. Total transactions grew 17% year on year, driving total payment volume growth of almost 50% to $46-billion.

It said it had sold more than 26% in merchandise, which hiked revenue by 52% to $1.9-billion, while investments boosted trading losses by $69-million to $381-million.

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