Africa’s biggest media company Naspers reported a 3,8% drop in first-half core headline EPS, at the top end of its own forecast, and said acquisitions and pay-TV subscribers boosted revenue.
The company said core headline EPS — its main profit gauge — fell to 476 cents from 495 cents a year ago, in line with its own prediction for a fall of up to 10%. Fully diluted core headline EPS fell to 470 cents from 482 cents.
It said it expected market turmoil to slow consumer spending but that the major emerging markets in which it operates would continue growing.
Naspers, which runs Africa’s biggest pay-TV network DStv and a slew of newspapers and magazines in SA, has been expanding aggressively in other emerging markets and owns newspapers in Brazil and internet businesses in Russia and Poland.
The company also said advertising revenue comprised 16% of its total revenue, but it noted that
there was downward pressure on advertising income.
The company said market conditions may present further investment opportuntities.
It said revenue increased 32% as it signed up 171 000 new households to its pay-TV network and as new acquisitions added to the top line.
Shares in Naspers gained 0,68% to R146,99 by 7.17am GMT, outperforming a weaker Top-40 index of blue-chip stocks.