Naspers’s core headline earnings per share for the six months to September 30 was expected to decrease by 28 to 5 cents per share, or by 7.4 to 1.3 percent. Photo: File
Naspers’s core headline earnings per share for the six months to September 30 was expected to decrease by 28 to 5 cents per share, or by 7.4 to 1.3 percent. Photo: File

Prosus creation knocks value of Naspers shares

By Edward West Time of article published Nov 17, 2020

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CAPE TOWN - NASPERS’S core headline earnings per share for the six months to September 30 was expected to decrease by 28 to 5 cents per share, or by 7.4 to 1.3 percent, driven mainly by the creation of the Prosus free float in September 2019.

Adjusted for this, core headline earnings growth per share was expected to increase in the same range as Prosus Group, by between 23.8 to 30.5 percent, the group said in a trading statement yesterday.

The earnings, headline earnings and core headline earnings growth was impacted largely by reduced earnings contributions in the current year from the Prosus Group, post its listing in September 2019, and the creation of the free-float.

As at September 30, 2019, Naspers had recognised 100 percent of the Prosus earnings compared to 72.66 percent in the current period.

Naspers, like most companies, had faced challenges due to Covid-19, particularly in countries where lockdown regulations were wide ranging and long lasting.

However, there had been a “sharp” recovery in all of its impacted businesses after contingency plans produced results once lockdown regulations began easing.

Prosus said it had completed several acquisitions, and was continuing to explore opportunities.

BUSINESS REPORT

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