Media group Naspers (NPN) said on Wednesday that the group was presently trading better than anticipated and should this continue, its results for the six months to the end of September were expected to be substantially higher than those for the corresponding period last year.
It said the results could be more than 30% better than last year’s.
Naspers said in a trading update that the stronger rand had had a mixed effect on the group.
“On the positive side, some business units have substantial input costs denominated in foreign currency and the strong rand will in due course help in this regard. Our print and pay-television platform businesses and to some extent our book publishers will benefit. On the other hand, units such as M-Net and SuperSport earn export revenues in US dollars from services provided to countries elsewhere in Africa.
“The strength of the rand has resulted in these US dollar revenues translating into fewer rands. The volatility of the rand will also result in unrealised translation gains or losses when reporting the group’s financial results.”
However, it added that the effect of heavy investment over the last five years in print infrastructure was bearing fruit, with higher efficiencies.
“Our internet businesses in the aggregate are approaching profitability, with the units in Asia performing best. The pay-television platform businesses are also operating well, with reduced losses expected from operations in Greece.
“The net effect of this is that the group is presently trading better than anticipated. Should this continue the results for the six months to 30 September 2003 may substantially exceed those of the corresponding period last year (substantially means equal to or greater than 30% as defined in the JSE Listings Requirements),” the group stated. – I-Net Bridge