Prosus reports $2 billion in core earnings, sees e-commerce profitability earlier
Prosus says share buybacks benefit shareholders because the Tencent stake, now worth $98 billion, is worth about 30 per cent more than Prosus itself.
Prosus NV, a large technology investor, said on Wednesday its core headline earnings increased 118 per cent in the first half of 2024, citing improved profitability in its stable of e-commerce investments.
"After years of investment and growth, our businesses are now at scale and demonstrate improving profitability," the company said in a statement, saying it now expects these investments to reach profitability in its current financial year, six months earlier than expected.
Core headline earnings for the half year ended on September 30 were $2.0 billion, from $1.1 billion in the same period a year earlier, in line with a November 20 trading statement. The company said that would be a 118 per cent increase if comparing like-for-like, adjusting for currency fluctuations and business disposals.
Core headlines earnings is a nonstandard measure the company says best reflects its group operating performance.
It includes the massive stake Prosus owns in China's Tencent, which the company said has been sold down from 26.2 per cent to 25 per cent to fund a rolling share buyback program.
Prosus says share buybacks benefit shareholders because the Tencent stake, now worth $98 billion, is worth about 30 per cent more than Prosus itself.
Among the other e-commerce companies the company owns and operates, revenue grew 13 per cent to $2.6 billion, Prosus said, while trading improved to a loss of $36 million, shrinking from a loss of $256 million in the same period a year earlier.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
GAIL share price target: Should you buy, sell or hold GAIL shares? Here's what brokerages make of PSU's Q4 results
Top 7 SIP Mutual Funds in 1 Year: What Rs 10,000, Rs 15,000, and Rs 20,000 SIPs have given in each fund
Special Live Trading Session on Saturday: Know why BSE, NSE will remain open on May 18; check timings
If you make RDs of Rs 5,000, Rs 10,000, Rs 15,000, and Rs 20,000 in post office, what will be your maturity amount?
Atal Pension Yojana EPFO National Pension System SWP Retirement Planning schemes provide pension every month
Gold and Silver rate today (May 16, 2024): Yellow metal futures subdued; white metal hits record high breaches Rs 87,000 mark
01:07 PM IST