Prosus boosts e-commerce profits as FX losses and portfolio overhaul weigh on results

Key topics:E-commerce aEBITDA jumps 70% as iFood, OLX and PayU deliver strong growth and improved margins.Large financial charges, including a US$648m Delivery Hero loss and US$480m FX hit, weigh on reported earnings.US$2bn invested in M&A, with major post-period deals (JET, La Centrale) reinforcing Prosus’ ecosystem strategy.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.Prosus has delivered a strong operational performance in its interim results for the six months ended 30 September 2025, with its core e-commerce operations showing substantial profitability gains even as the group absorbed major financial charges linked to portfolio restructuring, foreign-exchange losses and strategic acquisitions. The results underscore the group’s transition from a passive investment holding company to an operator of large regional lifestyle e-commerce ecosystems across Latin America, Europe and India—an AI-focused strategy now delivering measurable returns.Group revenue rose 22% to US$3.6bn (14% in local currency excluding M&A), driven primarily by iFood in Latin America, OLX in Europe and PayU in India. E-commerce was the standout performer: adjusted EBITDA surged 70% to US$530m, reflecting 58% organic growth. At group level, consolidated aEBITDA almost doubled to US$423m, while core headline earnings rose 13% to US$4.0bn, supported by strong operational improvement and contributions from equity-accounted investments, including Tencent.Earnings from continuing operations increased 23% to US$5.6bn, strengthening the financial foundation of Prosus’ operating shift.Regional ecosystems deliver profitability gainsIn Latin America, iFood achieved 35% revenue growth in local currency and lifted aEBITDA from US$117m to US$184m. The fintech arm, iFood Pago, grew revenue by 96% and reached B2C breakeven in September. The business expanded further through three acquisitions—SAIPOS, 3S Checkout and Videosoft—strengthening its dine-in and restaurant-tech ecosystem.In Europe, OLX increased revenue 22% (17% organic) to US$473m and boosted aEBITDA 52% to US$231m, lifting margins by 10 percentage points to 49%. Motors, real estate and jobs—the platform’s core categories—all achieved strong profitability and continued expansion.In India, PayU delivered 20% revenue growth and pivoted firmly to profitable growth, achieving breakeven aEBITDA for 1H26 and delivering a profitable second quarter. The credit business also reached breakeven, improving margins significantly from the prior year’s deeply negative base.Tencent and cash generation strengthen the balance sheetTencent, a central pillar of the Prosus portfolio, reported a 14% increase in revenue—to RMB364.5bn—and a 16% rise in non-IFRS profit. Prosus’ share-repurchase programme, built mainly on Tencent stock sales, lifted core headline earnings per share by 24%. Since inception, the programme has reduced the Prosus free-float share count by 30%, creating US$63bn in value by end-September.Free cash flow improved sharply, rising from US$897m to US$1.3bn. Excluding the Tencent dividend, free cash flow swung from a US$104m outflow in the prior period to a US$59m inflow, pointing to stronger underlying profitability in e-commerce.Financial charges weigh on bottom-line performanceDespite the strong operational showing, Prosus’ financial results were constrained by several large charges.The group recorded a US$648m loss after losing significant influence in Delivery Hero—a regulatory consequence of Prosus’ agreement to reduce its stake to secure European Commission approval for its Just Eat Takeaway.com (JET) acquisition.Unrealised FX losses surged due to euro-denominated bond translation, contributing to a rise in finance costs from US$149m to US$480m. Net interest income fell by US$87m as Prosus deployed more central cash into investment activity.Profitability within some e-commerce investments also lagged. Swiggy’s adjusted EBITDA loss widened to US$178m (from US$85m) due to continued investment in Instamart, its fast-growing quick-commerce unit. Meanwhile, revenue at eMAG remained flat at US$1.1bn as Romania’s weak macroeconomic environment and intensifying competition hit first-party sales.Corporate aEBITDA costs rose to US$107m, driven by FX impacts and higher AI-related spend.Heavy M&A activity underscores ecosystem strategyProsus invested US$2.0bn through M&A in the period, including the US$1.8bn acquisition of Despegar. After the reporting date, it finalised major commitments: the €4.2bn (US$4.9bn) acquisition of JET and a €1.1bn (US$1.3bn) deal for La Centrale—both intended to reinforce its European ecosystem.A dual narrative: operational strength vs financial volatilityProsus’ interim results highlight a business whose operational “engine room” is firing strongly, with core e-commerce units reaching cash-generative scale. However, heavy restructuring costs, FX volatility and the financial impact of regulatory-driven disposals continue to cloud the bottom line. Management warns that competition will intensify across its regions, while AI-related disruption and geopolitical volatility remain key risks..Read the results in full by downloading the PDF below

Prosus boosts e-commerce profits as FX losses and portfolio overhaul weigh on results

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