“We report robust consolidated revenue growth of 26 per cent, driven by both the internet and pay-television businesses. This growth was fuelled by development spend of 7.7 billion rand– up 79 per cent on last year – devoted particularly to ecommerce and digital terrestrial television (DTT),” Naspers said in a statment.
Consolidated revenues grew 26 per cent to 62.7 billion rand for the year ended March 31 2014, compared to 49.8 billion rand in the previous comparative period. The growth was largely boosted by growth in the company’s internet businesses. The weak rand also contributed to the growth boost.
“Net interest on borrowings increased to 1.2 billion rand from 636 million rand in 2013 due both to the rand depreciation and increased borrowings utilised to fund acquisitions and growth,” Naspers added.
[DATA NPN:Naspers Limited] is a mass media company based in South Africa that deals in electronic and print media.
Consolidated operating profit declined to two billion rand from four billion rand, and profit before tax showed a slight increase from 9.2 billion rand in 2013 to 9.4 billion rand for the period under review.
The company’s prominent businesses Tencent and Mail.ru nevertheless reported strong growth. Tencent is an instant messaging platform operator in China, while Mail.ru is an operator of a Russian instant messaging service.
Naspers acquired a 46.5 per cent stake in Tencent in 2001, and 30 per cent interest in Mail.ru. It added an additional 2.6 per cent interest in Mail.ru in 2007.
“Tencent consolidated its leading position in communication and games in China, while strengthening its stance in ecommerce. Revenue for the year was 60 billion renminbi, up 38 per cent, while non-GAAP profit attributable to shareholders was 19 per cent higher at 17.1 billion renminbi,” Naspers explained.
Revenue for Mail.ru for 2013 was reported at 27 billion roubles, up 30 per cent year on year, while group aggregate net profit rose 36 per cent to 11.4 billion roubles.
Revenue for Naspers’s ecommerce segment grew 64 per cent to 20.3 billion rand, and revenue for the company’s pay television segment grew by 20 per cent to 36.3 billion rand. Investments in DTT services also resulted in trading profits creeping up at a slower 13 per cent to 8.5 billion rand.
“The print media segment experienced a tough year with flat revenues and declining margins. Media24 managed small revenue growth of 1 per cent, but trading profit declined by 7 per cent. Abril had a poor year, as revenues declined and restructuring lagged,” Naspers explained.