Naspers H1 2026: Profitability jumps, cash flow strengthens, strategic losses persist

Key topics:E-commerce operating profit surged, with consolidated aEBITDA jumping 96% and free cash flow climbing to US$1.3 billion.Strong performances from iFood, OLX, PayU India and Takealot highlight ecosystem momentum across LatAm, Europe, India and SA.FX losses on euro bonds and strategic divestitures – including Delivery Hero and OLX Autos – weighed on headline earnings.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.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..BizNews Reporter.Naspers has delivered a strong operational performance for the six months ended 30 September 2025 (1H26), accelerating profitability across its e-commerce businesses while navigating sizeable foreign-exchange losses and strategic investment write-downs. The results reflect the group’s transformation into a global technology operating company centred on AI-first, regionally scaled ecosystems.Operational profitability acceleratesConsolidated revenue rose 20% to US$4.1 billion, or 14% in local currency, powered by growth in iFood in Latin America, OLX in Europe, and PayU in India. Operating leverage was evident across the portfolio: consolidated aEBITDA increased 96% to US$433 million, while aEBIT more than doubled to US$223 million.The e-commerce segment – now the core of the group’s strategy – produced aEBITDA of US$557 million, up 71%. Core headline earnings grew 13% to US$1.7 billion, or 18% in local currency, with core headline earnings per share benefiting from the ongoing share-repurchase programme.Free cash flow climbed from US$854 million to US$1.3 billion. Excluding the Tencent dividend, free cash flow swung from a US$147 million outflow to a US$38 million inflow, revealing a marked improvement in underlying operational profitability.Tencent remains pivotal to Naspers’ balance sheet strength. Equity-accounted earnings increased by US$687 million to US$3.2 billion, while trimming the stake from 23.5% to 22.8% generated US$3.3 billion in gains. Since 2022, the repurchase programme – executed via Prosus – has removed 30% of its free float, supporting US$63 billion in value creation.Regional ecosystems deliver strong resultsPerformance across Naspers’ regional platforms highlighted the benefits of its ecosystem approach.In Latin America, iFood grew revenue 35% in local currency, with its fintech arm iFood Pago tripling revenue in its B2C operation and reaching aEBITDA breakeven in September. The Despegar acquisition, concluded in May, added US$302 million in revenue.In Europe, OLX delivered aEBITDA of US$231 million – a 52% rise – with a 10-percentage-point margin expansion to 49%. E-commerce platform eMAG held revenue steady at US$1.1 billion despite a tough Romanian economy, and grew aEBITDA 23% in local currency.PayU India returned to profitability at the aEBITDA level, with margins moving from –6% to breakeven. PayU Payments achieved US$2 million aEBITDA, while PayU Credit narrowed losses sharply.South Africa’s Takealot Group continued outperforming global peers and moved closer to break-even, reporting aEBITDA of US$28 million. Edtech units Stack Overflow and GoodHabitz also achieved profitability.FX losses and investment setbacks weigh on earningsThe notable drag on the otherwise strong interim results came from finance costs and strategic adjustments.Other finance costs surged from US$149 million to US$479 million, largely due to unrealised foreign-exchange losses on euro-denominated bonds translated into the US-dollar reporting currency. Headline earnings from continuing operations dipped slightly to US$1.1 billion.The group recorded a US$648 million loss after losing significant influence over Delivery Hero, a condition required by the European Commission to proceed with its acquisition of Just Eat Takeaway.com. Losses also widened at Swiggy, where adjusted EBITDA fell to –US$178 million as investment in the Instamart quick-commerce unit continued.Naspers finalised its exit from OLX Autos, recording US$11 million in discontinued-operations losses.Outlook: Growth on track, competition risingManagement expects to meet 2026 guidance for e-commerce revenue (US$7.3 bn–US$7.5 bn) and aEBITDA (US$1.1 bn–US$1.2 bn excluding JET). But it warned of intensifying competition across LatAm, Europe, and India, along with geopolitical risks, macro volatility, and the disruptive potential of rapid AI innovation.Despite strategic costs and currency losses, Naspers’ interim results underline a clear shift: its e-commerce ecosystems are scaling profitably, cash generation is strengthening, and Tencent continues to underpin balance-sheet resilience – even as high-stakes strategic moves carry short-term financial consequences..Read the results in full by downloading the PDF below

Naspers H1 2026: Profitability jumps, cash flow strengthens, strategic losses persist

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