Naspers FY - e-commerce shines

Yesterday Prosus/ Naspers released their annual results. Usually, the numbers are a non-event because Tencent remains such a significant part of the group's overall value that it doesn't really matter what the other businesses do.

This time it was different. Tencent closed down 0.3% but Prosus popped 3.1%. I can't think of the last time there was such divergence between those two prices. The market really liked the news that Prosus is doubling its dividend, meaning that it is a smidge short of tripling the payout value over three years.

The non-Tencent part of the business is also going in the right direction thanks to management's new focus on sustainable growth. Operating profits have swung from a loss to a profit, free cash flow is up and so too is cash on hand. Prosus also expects to see five Indian IPOs from its portfolio companies this year.

Since the group started its major share repurchase program in 2022, funded by Tencent share sales, Prosus has reduced the shares in issue by 29% and Naspers by 27%. Amazing. The whole process helps to return capital to shareholders and to reduce reliance on Tencent.

We are happy holders of these businesses.