Naspers, Prosus signal major profit surge on Tencent and Ecommerce gains
Key topics:
Tencent rebound and Ecommerce profitability drive strong H1 earnings growth
EPS and CHEPS expected to surge, boosted partly by one-off Tencent share-sale gains
Adjusted metrics, forex effects and unaudited figures remain key caveats
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BizNews Reporter
Naspers Limited and its international investment arm, Prosus N.V., have issued corresponding trading statements for the six-month period ended 30 September 2025 (1HFY26), advising shareholders of substantial expected increases across their key earnings metrics. The Prosus results almost completely account for Naspers’s results. Both companies are scheduled to release their condensed consolidated interim financial statements on Monday, 24 November 2025.
The trading statements, mandated by JSE Listings Requirements for South African listed entities anticipating a difference of at least 20% in upcoming financial results compared to the previous corresponding period, signal a powerful period of financial and operational performance. The overall tenor of the forecasts is overwhelmingly positive, showcasing significant growth, particularly when analysed through the lens of earnings per share (EPS) and core headline earnings per share (CHEPS).
The Good: Strong growth and strategic delivery
Exceptional growth in core metrics
The most striking takeaways from the statements are the projected increases in profitability, which the companies attribute to strong growth in revenue and profitability from their consolidated Ecommerce businesses and equity-accounted investments, most notably Tencent.
For Naspers’s continuing operations, the forecasted increases are substantial:
Earnings per share (EPS) is expected to rise sharply, between 30.2% and 37.2% (339–418 US cents increase from 1,123 US cents in 2024, based on pre-share-split adjusted figures).
Core headline earnings per share (CHEPS), which the board considers a useful indicator of underlying operating performance, is projected to increase between 20.8% and 27.8% (180–240 US cents increase from 865 US cents in 2024).
Headline earnings per share (HEPS) is expected to increase between 5.6% and 12.6% (36–81 US cents increase from 643 US cents in 2024).
The results for Prosus’s continuing operations reflect a similar strong trajectory for its N ordinary shares:
Earnings per ordinary share N is expected to increase between 28.1% and 37.0% (54–71 US cents increase from 191 US cents in 2024).
Core headline earnings per ordinary share N is expected to rise between 20.1% and 28.5% (29–41 US cents increase from 144 US cents in 2024).
Headline earnings per ordinary share N is expected to increase between 6.5% and 15.9% (7–17 US cents increase from 107 US cents in 2024).
Furthermore, the statements indicate that the groups delivered on their commitment to increase profitable growth during the first half of FY26, achieving strong financial and operational results. This strategic success is reinforced by the adoption of "The Prosus Way" culture, focusing on discipline and innovation, which the Group believes is building foundations for continued long-term growth. The combined ecosystem now serves approximately 2 billion consumers worldwide and encompasses nearly 100 companies with complementary capabilities.
For Naspers, the expected increases in total operations were slightly higher than continuing operations across all metrics, with EPS expected to increase between 33.3% and 40.5%, CHEPS between 21.5% and 28.5%, and HEPS between 6.5% and 13.5%. Prosus similarly projected higher growth in total operations compared to continuing operations.
The nuances and caveats
While the growth projections are robust, the differences in the reported metrics—and what is excluded from them—provide essential context and indicate where risks or non-operational factors influenced the results.
Reliance on non-operational gains and adjusted metrics
The highest reported growth metric, Earnings per share (EPS), benefited substantially from a specific one-off event. The strong increase in EPS is primarily due to increased profitability in consolidated and equity-accounted results (Tencent being primary), and also the gain on the sale of Tencent shares related to the share repurchase programme. This gain is significant enough that it is explicitly excluded from the lower, but still positive, Headline and Core Headline Earnings figures.
A crucial distinction exists between HEPS and CHEPS regarding currency fluctuations. Core headline earnings per share (CHEPS) generally benefited from the exclusion of foreign currency translation losses, which are necessarily included in headline earnings (HEPS). This exclusion helps explain why CHEPS (around 20%-28% growth) showed significantly higher growth than HEPS (around 6%-16% growth).
Complexity of Core Headline Earnings (CHEPS)
The definition of Core Headline Earnings emphasises its nature as a non-IFRS performance measure, achieved by making numerous adjustments to headline earnings to exclude specific non-operating items. These adjustments are complex and include:
Excluding fair-value adjustments on financial and unrealised currency translation differences, as these items "obscure our underlying operating performance".
Excluding certain one-off gains and losses (including acquisition-related costs) resulting from acquisitions and disposals of businesses.
Excluding the amortisation of intangible assets recognised in business combinations and acquisitions.
While these exclusions aim to provide a clearer view of operating performance, the use of a highly adjusted, non-IFRS metric requires careful scrutiny by investors.
Unaudited information warning
Finally, a fundamental caution inherent in trading statements is disclosed by both companies: the financial information on which these forward-looking statements are based has not been subject to an independent audit or review by the Group’s auditors. Shareholders must wait for the full interim financial statements in late November 2025 for final, verified results. Core headline earnings per share also constitute pro-forma financial information in terms of the JSE Limited Listings Requirements.
In essence, Naspers and Prosus are signalling a period of robust, operationally driven profit growth, boosted by key strategic investments and asset sales, but caution that the highest growth figures (EPS and CHEPS) reflect specific accounting adjustments and non-operational events, all while relying on unaudited figures.