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Naspers interim results release 1HFY13

Announcements, Results, Nov 27 2012
In Naspers press releases

South Africa, 27 November 2012 – Naspers Limited (JSE: NPN) today announced its results for the six months ended 30 September 2012.

NASPERS ACCELERATING DEVELOPMENT SPEND

Naspers today reported consolidated revenue of R23 billion, a 22% increase, for the six months ended 30 September 2012. Core headline earnings per share, considered by the board to be a good indication of sustainable performance, increased 15% to R10.62, totalling R4,1 billion. The internet segment remained the area of fastest growth, whilst some benefit was gained from a weaker rand. Development costs as a result of the organic growth of businesses increased 41% to R1,6 billion. Positive free cash flows increased 22% to R1,7 billion.

“The group continues to grow organically, with an increasing focus on e-commerce,” Naspers chairman Ton Vosloo said. “In addition, we have invested R4,5 billion year to date in acquiring new businesses in this area”.

Revenues from the e-commerce segment expanded robustly by 61% to R4bn. Organic growth accounted for 27% of the total. A focus on building scale and expanding e-commerce platforms across the value chain has trimmed trading profits by R1 billion and increased the trading loss in the sector.

After recording net growth of 393,000, the pay-television base now stands at just over 6 million homes across 48 countries in Africa. Revenues were up by 19% to R14,4 billion, whilst trading profits grew 18% to R4 billion. Trading margins were stable despite the upgrading of satellite infrastructure, the expansion of online services and a roll-out of digital terrestrial television (DTT) services across a number of sub-Saharan countries.

Print operations in South Africa were strained by the challenging economic climate, but reported steady growth. Margins improved due to a continued focus on managing costs.

Naspers’ share of core earnings from associates, including Tencent in China, Mail.ru Group in Russia and Abril in Brazil, increased by 46% to R3,1 billion.

“During the next six months we’ll keep growing our e-commerce operations across emerging markets,” Naspers CEO Koos Bekker said. “We intend to step up the gas and as a result development spend will accelerate in the second half of the year”.

Naspers financial director Steve Pacak added: “With development spend ramping up and a changing business mix, future margins will trend down. The plan is however to increase our absolute profits and returns over time”.


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