Hedging policies could see publishing and electronic media group Naspers (NPN) reporting a headline loss when it releases its results for the year ended March on Thursday.
An I-Net Bridge poll of analysts points to a loss per share of 50,5 cents, but the group is expected to pay a dividend per share of 25,5 cents.
Forecasts vary however from a loss of just 24 cents to a loss of 87 cents per share.
The group’s African business operations have shown a strong performance, however analysts warn that its Greek pay-television business could let it down. But its South African print and television businesses are also expected to deliver a strong performance.
According to analysts a major concern for Naspers is its Greek television operation whose interim loss increased to R147-million. With an estimated 50% of its costs being US dollar-dominated, the group is not expected to gain from the appreciation in the rand and because the company hedges its US dollar exposure 12 to 18 months in advance, is likely to report a significant loss in this area.
“Both its South African and African earnings should be relatively healthy, but the results could be muted on an operational basis. Rand appreciation in the previous months is unlikely to have filtered through Naspers because it is hedge forward,” one trader commented.
Revenue from African operations is expected to have increased by 19,3% to R5,1-billion rand this year from last year, with EBIDTA margins increasing from 16,7% in 2002 to 19,0% in 2003. – I-Net Bridge