18 Nov 2019 13:30
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 condensed consolidated interim financial statements for the six months ended 30 September 2019.
During the 2019 financial 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 previous results of the video-entertainment segment were presented as results from discontinued operations. The prior period income statement has been restated to distinguish between continuing and discontinued operations.
On 11 September 2019, the group listed its international internet assets on Euronext Amsterdam. This listing created the largest listed consumer internet company in Europe, Prosus N.V.(Prosus), comprising the group's internet interests outside of South Africa. Prosus also has a secondary, inward listing on the JSE in South Africa. Prosus is 73.84% owned by Naspers.
Earnings per share in the current period is expected to be reduced significantly as the prior period's earnings per share included the gain of US$1.6bn recognised on disposal of the group's interest in Flipkart Limited in September 2018, which is non-recurring in September 2019. Earnings per share in the current period included a gain of approximately US$600m recognised on disposal of the group's interest in MakeMyTrip Limited. In addition, fair-value gains on investments held by Tencent (classified as at fair value through profit and loss) of approximately US$400m is expected to be substantially less than the gains of US$1.4bn recognised in the prior period, resulting in headline earnings per share decreasing considerably.
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. Core headline earnings per share from continuing operations for the six months ended 30 September 2019 is expected to increase by between 27 and 38 cents per share (between 7.6% and 10.7%). The abovementioned gains on disposals of investments and fair-value losses have been excluded from core headline earnings.
The group has illustrated the anticipated changes in core headline earnings, earnings and headline earnings per share for the year ended 30 September 2019 as compared to 30 September 2018 for both total operations (as previously reported) and continuing operations in the tables below:
Total operations | 30 September 2018 US cents | 30 September 2019 expected (decrease)/increase US cents | Expected (decrease)/increase% |
Earnings per share(1)(2) | 782 | (295) - (240) | (37.7%) - (30.7%) |
Headline earnings per share(1)(2) | 632 | (332) - (288) | (52.6%) - (45.6%) |
Core headline earnings per share(1)(2) | 380 | 0 - 11 | 0.0% - 3.0% |
Continuing operations | 30 September 2018 US cents | 30 September 2019 expected increase/(decrease) US cents | Expected increase/(decrease)% |
Earnings per share(1)(2) | 774 | (287) - (232) | (37.1%) - (30.0%) |
Headline earnings per share(1)(2) | 624 | (324) - (280) | (52.0%) - (44.9%) |
Core headline earnings per share(1)(2) | 353 | 27 - 38 | 7.6% - 10.7% |
(1) Per share information is based on the net number of N and A ordinary shares in issue during the respective periods.
(2) Weighted average number of shares for the periods ended 30 September 2019 and 2018 have been adjusted to include those shares issued for no consideration from the start of the earliest period presented i.e. 1 April 2018, to permit comparability in accordance with IAS33 Earnings Per Share. Per share data has accordingly been recalculated for all periods presented.
Further details will be provided in the condensed consolidated financial results, due for release on 22 November 2019. Financial information on which this trading statement is based has not been reviewed or reported on by the company's auditors.
JSE sponsor (South Africa): Investec Bank Limited
Cape Town
18 November 2019