Naspers has urged SA to prioritise accelerating digitalisation of the economy to stimulate growth.
Releasing annual results on Monday, the group said the digital platform sector had the potential to inject R91.4bn into SA’s economy by 2035.
“In order to fully realise this potential and stimulate growth, SA must prioritise accelerating digitalisation of the economy through collective action between business, government, civil society and other digital platform ecosystem players,” the group said.
Naspers reported headline earnings per share (HEPS) for continuing operations of 1,529 US cents for the year ended March from 792c a year ago.
Revenue rose to $7.18bn from $6.43bn before. It reported an operating profit of $124m after a loss of $562m a year ago.
“This was a year of growth, innovation, disciplined execution and strategic milestones for Naspers. I believe we are just at the start of creating exceptional value for all our stakeholders as we build a leading, innovative e-commerce ecosystem,” said CEO Fabricio Bloisi.
Prosus reported HEPS for continuing operations of 258c from 132c a year ago.
Prosus’ board has recommended a dividend of 20 euro cents per share — double that of a year ago.
Naspers said the past financial year was an active period in its investment portfolio and it invested or committed $7bn to support the ecosystems’ growth, profitability and value.
It announced two major acquisitions, both funded from available cash resources. It acquired Despegar, Latin America’s leading online travel agency for $1.7bn.
“This is a compelling addition to our regional ecosystem, which will expand to serve over 100-million customers across local e-commerce, travel and fintech sectors post transaction,” it said.
The transaction closed in May after all conditions were fulfilled.
It also acquired Just Eat Takeaway.com for €4.1bn, making it Naspers’ largest investment to date.
“This gives Prosus a unique opportunity to create an AI-first European tech champion, in line with EU ambitions to accelerate regional digital capabilities. We are confident in our ability to build a European food-delivery powerhouse, given lower penetration rates for these services and Just Eat Takeaway.com’s strong foundation, with leading positions in several markets.
The offer commenced in May and is subject to customary conditions, including regulatory approvals.
“As a global technology and e-commerce business, AI is essential for us. Naspers is embarking on a journey to ensure that we are an AI-first company, with innovation underpinning all facets of our business to enhance operations and customer experience, empower people and enrich communities while improving the daily lives of billions of people,” it said.
“AI is already making our marketplace operations significantly more efficient. At Naspers, we are committed to leading this AI-driven transformation. Through the Prosus ventures team, the group invests in new technology growth opportunities within AI that support the group’s existing ecosystem or potential new growth opportunities,” it added.
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