Naspers (NPN) H1 2025 earnings summary

Executive summary

• Achieved 26% year-over-year revenue growth, with Ecommerce revenue up to $3.4bn and a fivefold increase in EBIT, reflecting strong operational improvements and disciplined execution.

• Completed a $13 billion IPO, $2 billion in asset sales, and portfolio management including sales of Trip.com, Tazz, Superbalist, and a $500m Swiggy IPO stake sale, strengthening the balance sheet and providing $10 billion in investable cash.

• Core HEPS grew 88% YoY, supported by strong Ecommerce and Tencent profit, amplified by share buybacks.

• Free cash flow improved 74% YoY to $911m, reflecting higher profitability and increased Tencent dividends.

• Leadership changes included the appointment of Fabricio Bloisi as CEO in July 2024 and the upcoming retirement of CFO Basil Sgourdos in November 2024.

Financial highlights

• Consolidated revenue from continuing operations increased 14% to $3.4bn, mainly from Payments & Fintech, Etail, and Food Delivery.

• Ecommerce Adjusted EBIT rose to $181 million, with free cash flow up 74% year-over-year.

• IFRS operating profit was $107m, reversing a $426m loss in 1H24, due to improved profitability and lower impairments.

• Core headline earnings increased to $3.5bn, with free cash flow at $911m.

• Net cash position at corporate level was $1.4bn, with $17.0bn in central cash and $15.6bn in central debt.

Outlook and guidance

• Provided full-year guidance of $6.2 billion in revenue and $400 million in EBIT, with expectations of continued >20% top-line growth.

• Confident in maintaining strong growth and profitability, with aggressive goals for the next decade and a focus on AI-led initiatives.

• Guidance reflects expectations for ongoing improvement in e-commerce profitability and transparency in reporting.

• Anticipate further IPOs, especially in India, with at least five companies potentially going public in the next 1–2 years.

• Open-ended share-repurchase programme to continue while discount remains elevated.