Naspers reveals operating loss of $1.4 billion

Harris Marley

Global Courant
Image: Nieuws24

Naspers Limited has released its financial results for the year ended March 31, 2023, revealing that a company is struggling to create shareholder value.

Revenue from continuing operations increased from $6.3 billion to $6.8 billion, but unfortunately the good news ended there. Naspers’ operating loss widened from $985 million to $1.4 billion, and profit for the year fell from $18.5 billion to $10.0 billion.

Earnings per share (US cents) fell from 4,218 to 2,078 and diluted earnings per share fell from 4,127 to 1,998. Naspers says the poor results are due to “tencent’s lower contribution and a larger share of the group in e-commerce partner losses.” The CEO, Bob van Dijk, spoke about the results and mentioned that they have made good progress on all of their strategic objectives over the past year.

- Advertisement -

He said, “Against a challenging backdrop, the eCommerce portfolio has performed well, and the open buyback program is delivering improved NAV per share.” The company also made an announcement of a proposed transaction to simplify its ownership structure by eliminating the cross-holding between Naspers and Prosus, allowing the share buyback to continue indefinitely.

The transaction will be executed by both Naspers and Prosus issuing shares to their existing shareholders. The companies will then waive their rights to participate in the respective capitalization issue of new Prosus or Naspers shares.

Van Dijk added by saying: “We are on the right track. We have strong momentum and remain confident in our commitment to achieving profitability across our eCommerce portfolio in the first half of 2025.”

Despite mounting business losses and declining profits, the market was pleased with what Naspers said, and the stock price hit the headlines.


Naspers reveals operating loss of $1.4 billion

World News,Next Big Thing in Public Knowledg

- Advertisement -

#Naspers #reveals #operating #loss #billion
Share This Article
slot ilk21 ilk21 ilk21