Naspers' Pay TV revenue up 18% - CNBC Africa

Naspers' Pay TV revenue up 18%


by Trust Matsilele 0

Naspers Pay TV revenue up 18% year on year. PHOTOS: memeburn

According to the group’s half year results, Naspers reported an increase in headline earnings to 4.4 billion rand in 2014 comparable to 3.6 billion rand for six months ending 30 September 2013.

(READ MORE: Naspers’ rating saved by R577 billion investments)

The leading global platform operator saw its pay television segment revenues surging by 18 per cent to 20.2 billion rand year on year.

“Trading profit of five billion rand increased at a lower 11 per cent due to investments to build DTT and online services and expand the local content offering,” the company said in a statement.

The company also reported tax expense increasing to 1.75 billion due to higher profits in pay television, the Allegro marketplace and the online price-comparison businesses.”

The group statement also reported subscriber base growing by 342 000 during the six months to over 8.4 million households.

“Our businesses continued to deliver strong growth for the six months to 30 September 2014, with revenues measured on an economic-interest basis expanding by 30 per cent year on year,” said the group.

“During the period we made solid progress in building our ecommerce and pay-television platforms. Core headline earnings increased by 24 per cent,” added Naspers.

[DATA NPN:Naspers Limited] said, in ecommerce it was investing in formats such as etail (online retail), classifieds and payments.

The company’s online classifieds footprint now covers about 40 countries, all showing good user and listings growth.

(READ MORE: South’s Naspers ties up with rivals to boost online offering)

“These are proven winners for customers and gaining market share from other formats,” said the group.

“We aim to build leading positions in markets that we believe have the potential to grow significantly faster than mature economies in the years ahead.”

The group’s print media continues to face tough trading conditions and large-scale
structural changes to the industry.

The segment saw revenues growing slightly but margins contracted further due to accelerated investment in digital solutions and new growth areas to diversify the revenue base.

“We will continue to adjust our structure and cost base to the challenging business reality.”