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Internet fuels Naspers growth, dividend

Jun 29 2010 10:26 Marc Ashton

Company Data

Naspers Ltd -n- [JSE : NPN]

Last traded R389.02
Change R1.02
% Change 0.26%
Cumulative volume 910,493
Market cap R159.71bn

Last Updated: 13/02/2012 at 19:33. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - Posting strong earnings growth on Tuesday on the back of a good performance from its internet businesses, JSE-listed media group Naspers [JSE:NPN] said it will increase its dividend paid to shareholders.

Reporting full-year results for the year to end-March, the company said revenue rose 5% to R28bn while operating profit increased by 10% to R5.4bn. Core headline earnings grew 22% to R5.3bn.

The company has also recommended a dividend increase of 14% to 235c per share.

"The internet industry showed bold growth in emerging markets. Our pay television operations held up well whilst the technology business returned to operating profitability," the group said in commentary accompanying the results. "Print businesses globally, including our own, suffered in the recession. Overall, however, it was a good year for the group."

Chinese online portal Tencent's contribution to core headline earnings increased by 76% to R2.1bn. Revenue from the group's internet segment went up 24%, while operational profit grew to R2.4bn - up 49%.

However, Naspers said the strong rand had a negative effect on its earnings from internet businesses. "Calculated on a stable currency basis, we estimate that both revenues and operational profits would have advanced [a further] 19%," the company said. The internet segment's recorded revenue went up 24%, while operational profit grew to R2.4bn - up 49%.

Apart from a strong showing from its online businesses, the company also saw increased demand for its local pay television offering Dstv. The service grew its user base by 450 000 to 2.85 million homes in South Africa, and by 184 000 to 1.1 million in other African countries.

In terms of the operating outlook, the company advised stakeholders: "Looking ahead, we mostly have resilient businesses in emerging markets that are still expanding. Competition in pay-TV, regulation and consumer spending levels remain challenges. We plan to continue growing the group through a combination of organic growth and acquisitions, focusing on internet."

In early trade on Tuesday, Naspers shares had slipped 0.3% (89c) to trade at R261.

 - Fin24.com


Fin24.com is a Naspers subsidiary 

 
 
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