Prosus N.V. (AEX and JSE: PRX) announced its financial results for the year ending March 31, 2024. Prosus, a subsidiary of Naspers Limited, is finalizing its financial statements.
Significant Growth in Earnings Metrics
Prosus has reported significant growth across key financial metrics. The company attributes this to its strong e-commerce performance and improved profitability from investments.
Headline and Core Headline Earnings Surge
Headline earnings per share (HEPS) and core headline earnings per share (CHEPS) showed remarkable increases.
| Metric | Restated March 2023 (US cents) | Expected March 2024 (US cents) | Expected Change (%) |
|---|---|---|---|
| Continuing Operations | |||
| HEPS | 27 | 103-107 | 381.4%-396.3% |
| CHEPS | 99 | 90-97 | 90.9%-97.9% |
| Total Operations | |||
| HEPS | 23 | 107-111 | 465.2%-482.6% |
| CHEPS | 91 | 98-105 | 107.7%-115.4% |
Lower Earnings Per Share
Despite strong HEPS and CHEPS, earnings per share (EPS) decreased. The primary reason is a smaller gain from selling Tencent shares compared to last year.
| Metric | Restated March 2023 (US cents) | Expected March 2024 (US cents) | Expected Change (%) |
|---|---|---|---|
| Continuing Operations | 357 | (103-77) | (28.9%-21.6%) |
| Total Operations | 368 | (114-88) | (30.9%-23.9%) |
E-Commerce Driving Profitability
Prosus highlighted the robust growth in its e-commerce businesses. These operations led to accelerated profitability and positive cash flow.
Impact of Tencent Holdings
Prosus’s equity-accounted investments, particularly Tencent, significantly boosted profitability. However, smaller gains from Tencent share sales impacted overall EPS.
Share Repurchase Program
The continuation of Prosus’s share repurchase program contributed to the growth in core headline earnings per share.
Adjustments and Restatements
The financial results for March 2023 were restated to reflect several adjustments:
- Removal of the cross-holding structure between Naspers and Prosus
- Classification of OLX Autos as discontinued operations
Detailed Adjustments
The restated figures show a lower EPS for 2023 due to additional shares issued during the cross-holding removal.
| Period | Published WANOS* | Capitalization Issue and Removal of Cross Holding Structure | Restated WANOS* |
|---|---|---|---|
| 31 March 2023 | 1,357,367,416 | 1,392,906,871** | 2,750,274,287 |
* Weighted average number of shares in issue
**The group issued 808,533,377 ordinary shares N and reinstated 584,373,494 ordinary shares N.
Discontinued Operations Impact
The OLX Autos business has been classified as discontinued operations. The financial impact is as follows:
| Metric | 31 March 2023 Published (US$’m) | 31 March 2023 Restated (US$’m) |
|---|---|---|
| Earnings from Total Operations | 10,112 | 10,112 |
| Earnings from Continuing Operations | 9,575 | 9,809 |
| Earnings from Discontinued Operations | 537 | 303 |