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Naspers annual results release FY2010

Announcements, Results, Jun 29 2010
In Naspers press releases

South Africa, 29 June 2010 – Naspers Limited (JSE: NPN) today announced results for the financial year ended 31 March 2010.

NASPERS DELIVERS SOLID RESULTS

Naspers today reported a 5% increase in revenue to R28 billion for the financial year ended 31 March 2010. Operational profit (before amortisation and other gains and losses) grew by 10% to R5,4 billion, mainly due to cost management and flat development spend.

Core headline earnings, considered by the board to be a good indication of sustainable performance, were up 22% on the previous year to R5,3 billion or R14,26 per share. The board recommended a 14% dividend increase to 235 cents per share.

“Overall we had a good year,” Ton Vosloo, Naspers chairman said. “The increase in free cash flow to R4,1 billion was particularly pleasing. The strong rand depressed the contribution by the group’s offshore operations somewhat”.

The internet industry is showing growth in emerging markets. Revenues advanced 24% year-on-year. Profitability was affected by research and development spend and new product launches.

The pay-television businesses added 634 000 gross subscribers, an increase of 19% over the previous year. The group now reaches almost four million homes across Africa. Operating margins were slightly lower due to the cost of building the subscriber base, as well as higher content costs resulting from increased competition and more local production.

The past year saw the technology business become operationally profitable through a reduction in costs.

Print businesses globally, including our own, suffered in the recession as a result of a decline in advertising revenues. Our local print operations declined 5% in their top line. However, people continued to read as much as before. It is encouraging that we maintained market share and managed to improve cash flows.

Naspers’s share of income from associates, including Tencent in China, Mail.ru in Russia and Abril in Brazil, increased to R2,1 billion.

“We will continue to invest for long-term returns,” Naspers CEO Koos Bekker said. “This includes new investments in internet. Changes in technology will also require additional investment in our pay-TV operations”.

“We mostly have resilient businesses in emerging markets that are still expanding”, Naspers financial director Steve Pacak said. He cautioned that competition in pay-TV, regulation and consumer spending levels remain concerns.


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