Prosus e-commerce turns profitable ahead of CEO change

Prosus NV and Naspers Ltd. achieved a milestone as their e-commerce arm turned profitable for the first time, marking a pivotal moment ahead of Fabricio Bloisi's ascent to CEO in July. Excluding its Tencent stake, the division reported a $38 million trading profit for the fiscal year ending March 31. Enhanced operational efficiencies and strategic cost reductions fueled this transformation, underscoring Prosus's strategic shift under new leadership..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..Join us for BizNews' first investment-focused conference on Thursday, 12 September, in Hermanus, featuring top experts like Frans Cronje, Piet Viljoen, and more. Get insights on electricity and exploiting SA's gas bounty from new and familiar faces. Register here..By Loni Prinsloo.Prosus NV and its parent Naspers Ltd. swung their e-commerce business into profit for the first time ever as new Chief Executive Officer Fabricio Bloisi prepares to take the reins in July. .The e-commerce business, which excludes the Tencent Holdings Ltd. stake and comprises a portfolio of companies ranging from iFood in Brazil to PayU in India, reported a full-year trading profit of $38 million for the year ended March 31 as it managed to scale its business after years of investment, according to a statement on Monday. .Read more: 🔒 Meet Fabricio Bloisi: The new Prosus and Naspers CEO.Improved efficiencies in core units such as classified advertising, food delivery, payments and fintech — as well as cost cuts that included closing non-performing units — drove Prosus's push to turn its e-commerce business profitable..The online investment firm and its Cape Town-based parent Naspers made a block-buster early-stage investment in Tencent in 2001 for $34 million. Since then, the Chinese company's growth has exploded. That led the group to sell down some of its stake in Tencent and buy back its own shares to close a gap between the sum of its parts, and the value of its stake. The repurchase program has created $30 billion in value to date, the company said in the statement. .While net income for the year declined 35% to $6.61 billion, it exceeded the $6.25 billion estimate in a Bloomberg survey. .Former iFood head Bloisi will become CEO July 1, taking over from interim head Ervin Tu, who becomes chief investment officer and president. Bob van Dijk, who headed the company for a decade, resigned in September..Read also:.Prosus delivers against strategic objectives and is on track to achieve profitability targetNaspers/Prosus to cut 30% corporate staff in latest tech layoffsCan Swiggy's R170bn valuation be trusted? – Naspers/Prosus shareholders take note.© 2024 Bloomberg L.P.

Prosus e-commerce turns profitable ahead of CEO change

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