Naspers (NPN) H2 2025 earnings summary

Executive summary

• Achieved 21% revenue growth year-over-year, outpacing peers and driving strong operating leverage across core business units.

• Adjusted EBIT surpassed $443 million, with a target of $800 million+ by FY2026 and ambitions for multi-billion-dollar results beyond.

• Free cash flow turned positive, improving by $513 million year-over-year, and is expected to track EBIT growth.

• Dividend increased by 100% year-over-year, reflecting confidence in future cash generation and enhanced shareholder returns.

• Strategic focus on building leading lifestyle e-commerce ecosystems in Latin America, India, and Europe, leveraging synergies across food, fintech, commerce, and experiences.

Financial highlights

• Consolidated group revenue rose 21% year-over-year to $6.2 billion, with group aEBITDA up to $484 million and group aEBIT at $179 million.

• iFood core restaurant delivery achieved a 28% adjusted EBIT margin, with overall iFood at 17% and monthly orders exceeding 120 million in March.

• OLX online classifieds grew top line by 18% and profits by 61% year-over-year, with aEBIT margin at 35%.

• Free cash flow reached $1.0 billion, up from $524 million in the prior year.

• Central cash position remained strong despite $7 billion in M&A activity post-FY25, with $11 billion available for M&A after accounting for Despegar and Just Eat commitments.

Outlook and guidance

• FY2026 ambition for $800 million+ EBIT, with free cash flow expected to follow a similar trajectory, including Despegar from May 2025.

• Revenue growth targets for e-commerce businesses set at 15%-20% annually.

• Continued focus on margin improvement and innovation, especially in AI and ecosystem integration.

• Priority on closing Just Eat Takeaway acquisition and integrating Despegar, with further M&A in Europe considered after these milestones.

• Maintaining investment grade rating and sustainable capital structure guidelines.