REG - Prosus NV Naspers Limited - Trading Statement

Prosus NVAnnouncement

18/11/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241118:nRSR5867Ma&default-theme=true

RNS Number : 5867M  Prosus NV  18 November 2024

Prosus N.V.

(Incorporated in the Netherlands) (Trade Reg No 34099856)

AEX and JSE Share Code: PRX   ISIN: NL0013654783

("Prosus")

 

Trading statement

Shareholders are advised that the Prosus group ("the Group") is finalising its
condensed consolidated interim financial statements for the period ended 30
September 2024.

 

Prosus N.V. ("Prosus") is a subsidiary of Naspers Limited ("Naspers"), a
company incorporated in South Africa and listed on the Johannesburg Stock
Exchange ("JSE") in South Africa.

 

For context, in terms of the JSE Listings Requirements, South African listed
entities with a primary listing on the exchange are obliged to issue a trading
statement as soon as they are reasonably certain that the upcoming financial
results would differ by at least 20% from those of the previous corresponding
period. Trading statements are generally issued to provide shareholders with a
range of outcomes in respect of key financial metrics.

 

The financial results of Prosus almost completely account for Naspers's
results. Based on Naspers's anticipated results for the period ended 30
September 2024, Naspers is required to issue a trading statement in terms of
the above JSE Listings Requirements. To ensure that shareholders of Prosus are
provided with equivalent information simultaneously, Prosus is issuing this
trading statement.

 

The group has demonstrated its continued commitment to deliver profitable
growth, with consolidated Ecommerce profitability in the first half of FY25,
significantly exceeding that of the prior twelve months.  We expect to
continue this growth path by accelerating our pace of execution and
innovation, investing with an AI-first mindset and leveraging the potential of
the Group's technology ecosystem.

 

Core headline earnings per ordinary share N and headline earnings per ordinary
share N for continuing operations for the period are expected to increase
between 84%-93% and 93%-102% respectively, driven by accelerated growth and
improved profitability of our consolidated Ecommerce businesses and
equity-accounted investments, in particular Tencent.

 

Earnings per ordinary share N is expected to increase during the period
primarily from the Group's improved overall profitability coupled with lower
impairment charges in continuing operations this period compared to the
previous period. This improved performance was partially offset by a lower
gain from the sale of our Tencent shareholding compared to the previous
period, given that fewer shares were sold in the current period.

 

The gains relating to the sell down of Tencent and impairment charges
impacting earnings per share are excluded from headline and core headline
earnings per share. The board considers core headline earnings an appropriate
indicator of the operating performance of the Group, as it adjusts for
non-operational items.

 

The Group has illustrated below the anticipated changes in earnings, headline
earnings and core headline earnings per share for continuing operations for
the period ended 30 September 2024 as compared to 30 September 2023
continuing and total operations:

 

                                                         30 September 2023  30 September 2024 expected increase  Expected increase

 Continuing operations                                   US cents           US cents                             %
 Earnings per ordinary share N ((1))                     137                47-59                                34%-43%
 Headline earnings(***)per ordinary share N((1))         54                 50-55                                93%-102%
 Core headline earnings(****) per ordinary share N((1))  76                 64-71                                84%-93%

 

                                                          30 September 2023  30 September 2024 expected increase  Expected increase

 Total operations                                         US cents           US cents                             %
 Earnings per ordinary share N((1))                       129                55-67                                43%-52%
 Headline earnings(***)per ordinary share N ((1))         49                 55-60                                112%-122%
 Core headline earnings(****) per ordinary share N ((1))  72                 68-75                                94%-104%

 

More details will be published with the condensed consolidated interim
financial statements on Monday, 02 December 2024.

 

Financial information on which this trading statement is based has not been
subject to an independent audit or review by the Group's auditors.

 

*** Headline earnings represents net profit for the year attributable to the
Group's equity holders, excluding certain defined separately identifiable
remeasurements relating to, amongst others, impairments of tangible assets,
intangible assets (including goodwill) and equity-accounted investments, gains
and losses on acquisitions and disposals of investments as well as assets,
dilution gains and losses on equity-accounted investments, remeasurement gains
and losses on disposal groups classified as held for sale and remeasurements
included in equity-accounted earnings, net of related taxes (both current and
deferred) and the related non-controlling interests. These remeasurements are
determined in accordance with Circular 1/2023, headline earnings, as issued by
the South African Institute of Chartered Accountants, at the request of the
JSE Limited in relation to the calculation of headline earnings and disclosure
of a detailed reconciliation of headline earnings to the earnings numbers used
in the calculation of basic earnings per share in accordance with the
requirements of IAS 33 - Earnings per Share, under the JSE Listings
Requirements.

**** Core headline earnings, a non-IFRS performance measure, represent
headline earnings for the period, excluding certain non-operating items.
Specifically, headline earnings are adjusted for the following items to derive
core headline earnings: (i) equity-settled share-based payment expenses on
transactions where there is no cash cost to us. These include those relating
to share-based incentive awards settled by issuing treasury shares, as well as
certain share-based payment expenses that are deemed to arise on shareholder
transactions; (ii) subsequent fair-value remeasurement of cash-settled
share-based incentive expenses; (iii) cash-settled share-based compensation
expenses deemed to arise from shareholder transactions by virtue of
employment; (iv) deferred taxation income recognised on the first-time
recognition of deferred tax assets as this generally relates to multiple prior
periods and distorts current period performance;

(v) fair-value adjustments on financial and unrealised currency translation
differences, as these items obscure our underlying operating performance; (vi)
one- off gains and losses (including acquisition-related costs) resulting from
acquisitions and disposals of businesses as these items relate to changes in
our composition and are not reflective of our underlying operating performance
and (vii) the amortisation of intangible assets recognised in business
combinations and acquisitions. These adjustments are made to the earnings of
businesses controlled by us, as well as our share of earnings of associates
and joint ventures, to the extent that the information is available.

 

((1)) Per share information is based on the net number of N ordinary shares in
issue during the respective periods. The A ordinary shareholders and B
ordinary shareholders share 1/5(th) and 1/1 000 000(th) respectively of the
earnings attributable to the external N shareholders as at 30 September 2024.
The earnings will be expected to increase in the same ratio as N ordinary
shareholders.

 

18 November 2024

Symphony Offices Gustav Mahlerlaan 5

1082 MS Amsterdam The Netherlands

 

Sponsor:

Investec Bank Limited

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTGUBDBCBBDGSI