South African media and entertainment group Naspers on Tuesday reported diluted headline earnings per share of 415 cents for the six months ended September from 337 cents a year ago.
Core headline earnings per share increased to 450 cents from 323 cents, while diluted earnings per share declined to 268 cents from 345 cents.
Revenue rose 22% to R9,07-billion, while operating profit grew to R1,97-billion from R1,42-billion.
“Growth was satisfactory as trading conditions in most of the markets in which we operate have remained favourable,” said Naspers chairperson Ton Vosloo in a statement.
“We do not think this can last indefinitely, especially as indications are that the macroeconomic environment in South Africa may be tightening. In our other markets such as China, Brazil, Greece, Nigeria and Angola short-term conditions seem generally positive.”
The group said growth in the period under review came mostly from organic expansion of existing businesses.
Naspers said revenue growth was largely derived from a 62 000 increase in its pay television subscription base to 2,07-million and a 21% increase in advertising revenues.
The print media division increased revenue by 18% to R2,3-billion. Newspapers and magazines both benefited from the continued strong advertising market, Naspers added.
It added that revenue generated outside South Africa grew by 36% to R3,4-billion.
“Investment activity accelerated during the period with acquisitions totalling R3,7-billion, funded from existing resources. In addition, capital expenditure of R376-million was incurred, mostly in the South African print media business,” the group said.
During the period Naspers acquired the Philips CryptoTec conditional access business in April for R252-million and a 30% interest in Brazilian magazine publisher Abril SA for R2,6-billion.
In addition, Naspers concluded an agreement earlier this month to acquire Johnnic Communications’ entire 38,56% interest in M-Net/SuperSport. In consideration for this acquisition, Naspers will issue 20,9-million Naspers N ordinary shares and pay R250-million in cash. The deal is subject to a number of conditions including the approval of Johncom shareholders and the regulatory authorities.
Looking ahead, the group said indications are that the macro-economic environment in South Africa may be changing, with increases in interest rates that may affect consumer spending, and a weaker rand, which will make our foreign denominated input costs more expensive. – I-Net Bridge