South African multimedia giant Naspers has reported a full-year profit increase of 23 per cent following growth in DStv subscribers as well as as an increase in internet revenue.
According to a statement by Naspers, its adjusted net income stood at ZAR8.5 billion (US$848 million) in the year through March, which topped the ZAR8 billion (US$800.4 million) median estimates by analysts in a Bloomberg survey.
Naspers’ pay-television service rose by 1.1 million to 6.7 million homes on the continent and sales increased to ZAR50.2 billion (US$5.02 billion), while internet revenue increased by 80 per cent to ZAR34.6 billion (US$3.4 billion).
HumanIPO reported earlier this month the company’s full-year earnings rose by 25 per cent following the decline in value of the rand.
“These results are underpinned by a diverse portfolio, a fairly global presence and the spread of risk. A milestone was reached this year when managed revenues from our internet units,” which exceeded pay television, Bloomberg quoted Naspers as saying.
Naspers intends to invest in new ventures in light of the consumers’ shift from computers to smartphones. Naspers believes this strategy will “reduce both earnings and cash flows in the short term”.
Furthermore Naspers is currently increasing the number of its pay-television subscribers in Africa and is also expanding its internet business on a global scale.
Naspers owns stakes in Tencent Holdings, based in Hong Kong, and Mail.ru Group, based in Russia, while it recently acquired India’s RedBus through the Ibibo Group.
