12 Jun 2019 16:30
Naspers Limited
(Incorporated in the Republic of South Africa)
(Reg. No 1925/001431/06)
JSE Share Code: NPN ISIN: ZAE000015889
LSE ADS Code: NPSN ISIN: US6315121003
("Naspers")
Trading statement
Shareholders are advised that the Naspers group ("the group") is finalising its provisional report and consolidated annual financial statements for the year ended 31 March 2019.
During the current year the group distributed its interest in its video-entertainment business, MultiChoice Group Limited (MultiChoice Group), to its shareholders as a pro rata distribution in specie (the distribution). Following the distribution, the results of the video-entertainment segment have been presented as results from discontinued operations. The prior year income statement has been restated to distinguish between continuing and discontinued operations.
The group has illustrated the anticipated changes in core headline earnings, earnings and headline earnings per share for the year ended 31 March 2019 as compared to 31 March 2018 for both total operations (as previously reported) and continuing operations in the tables below:
Total operations | 31 March 2018 (as reported) US cents | 31 March 2019 expected increase/(decrease) US cents | Expected increase/(decrease)% |
Core headline earnings per share(1) | 581 | 180 - 191 | 31% - 33% |
Earnings per share(2) | 2 631 | (1 052) - (1 026) | (40%) - (39%) |
Headline earnings per share(3) | 416 | 491 - 503 | 118% - 121% |
Continuing operations | 31 March 2018 (as reported) US cents | 31 March 2019 expected increase/(decrease) US cents | Expected increase/(decrease)% |
Core headline earnings per share(1) | 553 | 133 - 145 | 24% - 26% |
Earnings per share(2) | 2 604 | (1 641) - (1 614) | (63%) - (62%) |
Headline earnings per share(3) | 387 | 468 - 480 | 121% - 124% |
(1) Shareholders are reminded that the board considers core headline earnings an appropriate indicator of the operating performance of the group, as it adjusts for non-operational items.
(2) Earnings per share was impacted significantly by the gain of US$1.6bn recognised on disposal of the group's interest in Flipkart Limited as well as by a gain recorded on the distribution of the MultiChoice Group to the group's shareholders. The latter gain is not part of earnings from continuing operations. The decline in earnings from the prior year was mainly due to the gain of US$9.1bn recognised on the sale of a 2% interest in Tencent Holdings Limited (Tencent) in March 2018, which is non-recurring in March 2019.
(3) Headline earnings per share increased considerably as a result of the group's share of fair-value gains recognised by Tencent on certain of its investments now classified as at fair value through profit and loss in terms of IFRS 9 Financial Instruments. These gains are not adjusted for when calculating headline earnings per share.
Further details will be provided in the summarised consolidated financial results, due for release on 21 June 2019. Financial information on which this trading statement is based has not been reviewed or reported on by the company's auditors.
The group's summarised consolidated income statement and segmental review for the year ended 31 March 2018, restated for the presentation of the video-entertainment segment as a discontinued operation, is illustrated below.
Summarised consolidated income statement | 2018 | ||
for the year ended 31 March | Restated(1) | ||
US$'m | |||
Continuing operations | |||
Revenue from contracts with customers | 2 985 | ||
Cost of providing services and sale of goods | (1 884) | ||
Selling, general and administration expenses | (1 728) | ||
Other (losses)/gains - net | ( 32) | ||
Operating loss | ( 659) | ||
Interest income | 52 | ||
Interest expense | ( 197) | ||
Other finance income/(costs) - net | ( 379) | ||
Share of equity-accounted results | 3 285 | ||
Impairment of equity-accounted investments | ( 46) | ||
Dilution (losses)/gains on equity-accounted investments | 9 216 | ||
Gains/(losses) on acquisitions and disposals | ( 93) | ||
- | |||
Profit before taxation | 11 179 | ||
Taxation | ( 70) | ||
Profit from continuing operations | 11 109 | ||
Profit from discontinued operations | 190 | ||
Profit for the year | 11 299 | ||
Attributable to: | |||
Equity holders of the group | 11 358 | ||
Non-controlling interest | ( 59) | ||
11 299 | |||
(1) Relates to the impact of adopting IFRS 15, as outlined in the group's interim results for the period ended 30 September 2018. |
| ||
Per share information
31 March | ||
2018 | ||
US$'m | ||
Per share information related to continuing operations | ||
Core headline earnings for the period (US$'m) | 2 388 | |
Core headline earnings per N ordinary share (US cents) | 553 | |
Diluted core headline earnings per N ordinary share (US cents) | 540 | |
Headline earnings for the period (US$'m) | 1 670 | |
Headline earnings per N ordinary share (US cents) | 387 | |
Diluted headline earnings per N ordinary share (US cents) | 374 | |
Earnings per N ordinary share (US cents) | 2 604 | |
Diluted earnings per N ordinary share (US cents) | 2 585 | |
Per share information related to discontinued operations | ||
Core headline earnings for the period (US$'m) | 120 | |
Core headline earnings per N ordinary share (US cents) | 28 | |
Diluted core headline earnings per N ordinary share (US cents) | 28 | |
Headline earnings for the period (US$'m) | 125 | |
Headline earnings per N ordinary share (US cents) | 29 | |
Diluted headline earnings per N ordinary share (US cents) | 28 | |
Earnings per N ordinary share (US cents) | 27 | |
Diluted earnings per N ordinary share (US cents) | 27 | |
Net number of shares issued ('000) | ||
- at period end | 432 126 | |
- weighted average for the period | 431 635 | |
- diluted weighted average | 433 003 |
Segmental review |
| ||||||||||||||||||||||||||||||||||
Revenue | EBITDA(1) | Trading profit |
| ||||||||||||||||||||||||||||||||
Year ended 31 March |
| ||||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 |
| ||||||||||||||||||||||||||||||||
US$'m | US$'m | US$'m |
| ||||||||||||||||||||||||||||||||
Continuing operations |
| ||||||||||||||||||||||||||||||||||
Internet | 15 863 | 3 342 | 3 013 |
| |||||||||||||||||||||||||||||||
Ecommerce | 3 582 | ( 655) | ( 713) |
| |||||||||||||||||||||||||||||||
- Classifieds | 628 | ( 99) | ( 114) |
| |||||||||||||||||||||||||||||||
- Payments and fintech | 294 | ( 60) | ( 64) |
| |||||||||||||||||||||||||||||||
- Food delivery | 166 | ( 20) | ( 30) |
| |||||||||||||||||||||||||||||||
- Etail | 2 060 | ( 248) | ( 270) |
| |||||||||||||||||||||||||||||||
- Travel(2) | 211 | ( 59) | ( 61) |
| |||||||||||||||||||||||||||||||
- Other(3) | 223 | ( 169) | ( 174) |
| |||||||||||||||||||||||||||||||
Social and internet platforms | 12 281 | 3 997 | 3 726 |
| |||||||||||||||||||||||||||||||
- Tencent | 12 024 | 3 925 | 3 675 |
| |||||||||||||||||||||||||||||||
- Mail.ru | 257 | 72 | 51 |
| |||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
Media(4) | 507 | 10 | 3 |
| |||||||||||||||||||||||||||||||
Corporate segment | 2 | ( 18) | ( 22) |
| |||||||||||||||||||||||||||||||
Intersegmental | ( 20) | - | - |
| |||||||||||||||||||||||||||||||
Total economic interest from continuing operations | 16 352 | 3 334 | 2 994 |
| |||||||||||||||||||||||||||||||
Less: Equity-accounted investments | (13 367) | (3 744) | (3 449) |
| |||||||||||||||||||||||||||||||
Total consolidated from continuing operations | 2 985 | ( 410) | ( 455) |
| |||||||||||||||||||||||||||||||
Total from discontinued operations | 3 672 | 669 | 415 |
| |||||||||||||||||||||||||||||||
Consolidated(5) | 6 657 | 259 | ( 40) |
| |||||||||||||||||||||||||||||||
(1)EBITDA refers to earnings before interest, taxation, depreciation and amortisation. | |||||||||||||||||||||||||||||||||||
(2)Travel revenue for the period ended 31 March 2018 has been reduced by US$65m due to the effect of the adoption of IFRS 15 on the group's associate MakeMyTrip Limited. This adjustment did not have an impact on EBITDA or trading profit. | |||||||||||||||||||||||||||||||||||
(3) The group historically allocated a portion of its corporate costs to the video-entertainment segment. Following the distribution of the MultiChoice Group to shareholders in the current year, and the consequent presentation of the video-entertainment segment as a discontinued operation, corporate costs are now only allocated to the ecommerce business. The group views these corporate costs as primarily relating to the support of the ecommerce business. In line with IFRS 8 Operating Segments the group has accordingly presented the comparative information contained in the segmental review on a similar basis. | |||||||||||||||||||||||||||||||||||
(4)31 March 2018 includes revenue of US$133.0m, EBITDA of US$33.3m and trading profit of US$33.3m relating to Novus Holdings Limited (Novus). The group distributed the majority of its shareholding in Novus to its shareholders in September 2017. | |||||||||||||||||||||||||||||||||||
(5)Includes the results of the video-entertainment segment which has been classified as a discontinued operation. | |||||||||||||||||||||||||||||||||||
Sponsor: Investec Bank Limited
Cape Town
12 June 2019