Prosus Reports 115% Surge in Core Headline Earnings for FY 2024

  • Prosus's core headline earnings per share surged by up to 115% for the year ended March 2024.
  • The company's e-commerce businesses achieved strong growth, driving increased profitability and cash flow generation.
  • Earnings per share decreased due to smaller gains from selling Tencent shares compared to the previous year.

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.

MetricRestated March 2023 (US cents)Expected March 2024 (US cents)Expected Change (%)
Continuing Operations
HEPS27103-107381.4%-396.3%
CHEPS9990-9790.9%-97.9%
Total Operations
HEPS23107-111465.2%-482.6%
CHEPS9198-105107.7%-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.

MetricRestated March 2023 (US cents)Expected March 2024 (US cents)Expected Change (%)
Continuing Operations357(103-77)(28.9%-21.6%)
Total Operations368(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.

PeriodPublished WANOS*Capitalization Issue and Removal of Cross Holding StructureRestated WANOS*
31 March 20231,357,367,4161,392,906,871**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:

Metric31 March 2023 Published (US$’m)31 March 2023 Restated (US$’m)
Earnings from Total Operations10,11210,112
Earnings from Continuing Operations9,5759,809
Earnings from Discontinued Operations537303