UPDATE: Naspers jumps 24% on Tencent sale news

The announcement by Naspers and Prosus of its decision to start an open-ended share repurchase programme, funded by regularly selling small numbers of Tencent shares to unlock immediate value for shareholders, has been greeted with enthusiasm by investors. – Sandra Laurence

Naspers media release

Naspers Limited announced strong revenue growth with profitability in core operations for the year ending 31 March 2022.

Building on the prior year’s standout performance, the Group’s ecommerce portfolio delivered revenue growth of 49%1 to $10.7bn. This growth resulted from strong operational execution and momentum in all ecommerce segments despite the turbulent environment. While the segments demonstrated core profitability, overall trading profit was lower than last year, reflecting investment in scaling the large adjacent opportunities in the segments, which serve significant consumer needs.

Today, Prosus and Naspers announced the start of an open-ended share repurchase programme of Prosus and Naspers shares. This programme will be funded by regularly selling small numbers of Tencent shares and is designed to efficiently unlock immediate value for shareholders and increase NAV per share over time. The programme will be active as long as the discount to NAV is at elevated levels. Full details are available in the regulatory announcement on the Naspers website.

Looking ahead, the Group will continue disciplined investment into scaling out growth adjacencies to build bigger and more valuable businesses – they have good traction with consumers and high potential to generate sustainable returns over the long term. Reflecting market realities, investment will be balanced with a focus on reducing costs and driving profitability in the core, and setting even higher targets for M&A returns.

Investment in existing businesses and in Prosus and Naspers shares is expected to create significant value for shareholders.

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