Prosus (PRX) H1 2025 earnings summary

Executive summary

• Revenue grew 26% year-over-year to $3.0bn, with a fivefold increase in adjusted EBIT to $181m, reflecting strong operational improvements and disciplined execution across all segments.

• Core headline earnings rose 76% to $3.5bn, supported by strong Ecommerce and Tencent performance, and amplified by share buybacks.

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

• Swiggy's IPO at $11.3bn valuation generated a $2bn gain, with over $2bn in asset sales including Swiggy and Trip.com stakes.

• Ongoing share buyback program has created up to $39bn in value, with 10% NAV per share accretion and 25% of free-float repurchased.

Financial highlights

• Group HY2025 revenue reached $3.0bn (up 26% YoY); adjusted EBIT: $60m; adjusted EBITDA: $111m.

• Ecommerce adjusted EBIT reached $181m (6% margin), and free cash flow improved to $911m, up 74% YoY.

• Core headline earnings increased to $3.5bn, up 76% YoY.

• Net cash position at $1.6bn as of 30 September 2024, with $17.0bn in central cash and $15.4bn in central interest-bearing debt.

• Earnings per share from continuing operations: 191 US cents (basic), 190 US cents (diluted), up from 137 and 136 US cents respectively.

Outlook and guidance

• FY25 guidance targets $6.2bn in Ecommerce revenue and $400m in adjusted EBIT, with organic growth above 20%.

• Management expects continued improvement in profitability and cash flow, with a focus on AI-first strategy and disciplined investment.

• Several Indian portfolio companies, including Swiggy, are expected to go public in the next 18 months.

• The company is committed to maintaining transparency and setting ambitious long-term goals, with a Capital Markets Day planned for 2025.

• The open-ended share repurchase program will continue while the discount remains elevated.