Continued Expansion and Solid Revenue Growth
Naspers (JSE: NPN)today reported a 17% increase in revenue to R18,5 billion for the six months ended 30 September 2011. Core headline earnings, considered by the board to be a good indication of sustainable performance, were up by 8% on the previous year to R3,5 billion or R9,21 per share. Development spend increased to R1,1 billion as part of the group's strategy to stimulate long-term growth. Positive free cash flows amounted to R1,4 billion.
"We continued expanding over the past six months," Naspers chairman Ton Vosloo said. "Our internet businesses benefited from both organic expansion and a few smaller acquisitions."
As anticipated, the pace of subscriber growth in the pay-television businesses slowed post the 2010 Fifa World Cup. About 269 000 subscribers were added during the six months to September and the service now reaches 5,2 million households across Africa. Trading margins were reduced by increased investment in local content, decoder subsidies and the development of new products.
Technology business Irdeto shipped 9,3 million conditional-access systems year-to-date and invested in new market segments.
Internet revenues continued upwards and segmental revenue advanced 50% year-on-year. Due to the increased focus on expanding operations organically and expensing these costs, trading profits nudged up by a lower 7% to R1,9 billion.
Print operations in South Africa felt the economic headwinds and delivered modest revenue growth of 7%. Advertising revenues remain flat. Trading profits were subdued by the fixed-cost infrastructure and expenses related to the implementation of new enterprise management systems.
Naspers' share of income from associates, including Tencent in China, Mail.ru Group in Russia and Abril in Brazil, increased by 32% to R2,2 billion.
"Indications are that overall revenue growth should remain firm over the next six months," Naspers CEO Koos Bekker said. "We will continue to focus on expanding operations organically."
Naspers financial director Steve Pacak added, "As previously warned, the profit line will be reduced by an acceleration of development spend in several of our businesses. We believe that this strategy is sound and will benefit the group over the long term."
The complete results are available on the Naspers website at http://www.naspers.com.
IMPORTANT INFORMATION
This media release contains forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995. Words such as "believe," "anticipate," "intend," "seek," "will," "plan," "could," "may," "endeavour" and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. While these forward-looking statements represent our judgements and future expectations, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These include numerous factors that could adversely affect our businesses and financial performance. We are not under any obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein.
Contacts:
Naspers Limited
Meloy Horn, Head of Investor Relations
Tel:
+27 11 289 3320
+27 11 289 4446
Mobile: +27 82 772 7123
or
Steve
Pacak, Financial Director
Tel: +27 21 406 3585
+27 21 406
2480
Mobile: +27 83 250 0006
