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NASPERS LIMITED - Annual results announcement for the year ended 31 March 2026

Naspers Limited
Full analysis

What this filing means

The headline looks alarming — Naspers swung to a GAAP operating loss of -US$217m from a US$124m profit — but the adjusted metrics tell a different story. Group aEBITDA more than doubled to US$1,093m, core headline earnings rose 14% to US$3,570m, free cash flow improved to US$1,490m (or US$253m organically after stripping the Tencent dividend), and the Prosus board raised the dividend 40% to 28 euro cents. With the share down 27.6% year-to-date and near its 52-week lows heading into the print (CAR-20 marginally negative), this is a genuine positive surprise: the market had positioned for continued deterioration, and the adjusted results show the business is generating significantly more cash than a year ago, even if headline revenue growth is heavily acquisition-driven.

Naspers made a big reported loss on paper because of acquisition costs and one-off charges — that is what hits the headlines. But if you look at the cash the business actually generated from its day-to-day operations (aEBITDA and free cash flow), it performed much better than last year. Management also felt confident enough to raise the dividend by 40%, which is a strong signal. The share had already fallen sharply this year, so the market was braced for bad news — this result cuts against that pessimism, which is why it matters.

Bull case

  • Revenue up 51% reported to US$10,848m, with 12% local-currency growth excluding acquisitions signalling resilient organic momentum across ecosystems.
  • Group aEBITDA more than doubled to US$1,093m from US$499m (+119% reported, +63% in local currency excluding acquisitions), evidencing margin expansion.
  • Free cash flow rose to US$1,490m from US$968m, with US$286m of organic improvement even after stripping out the Tencent dividend.
  • Prosus board recommended a 40% dividend hike to 28 euro cents per N share, signalling confidence in sustained cash generation.

Bear case

  • Operating result swung to a -US$217m loss from a US$124m profit in FY25, undercutting the adjusted-earnings growth narrative with a clear GAAP deterioration.
  • Reported free cash flow of US$1,490m is lifted by the Tencent dividend; excluding it, FCF was only US$253m, signalling thin underlying cash generation.
  • Revenue rose 51% reported but only 12% in local currency ex-acquisitions, so headline top-line growth is largely inorganic from JET and Despegar, not core operations.
  • Competition increased meaningfully in H2 and iFood will require higher capital deployment over the next 12 months just to defend market leadership.
  • This short-form announcement omits net debt, segment-level cash flow, and working capital detail; the audited full statements are only referenced, not yet released.
View original SENS announcement

AI-generated summary by SENS-AI, based on the original JSE SENS filing.

SENS-AI conclusion

A genuine operational beat against a low base: the share had sold off into the print, sitting near 52-week lows and down 27.6% year-to-date, so materially better adjusted earnings and a 40% dividend hike land as real surprises rather than confirmation of a view already held. The adjusted metrics (aEBITDA +119%, core HEPS +24%, FCF improvement) are strong. The offset is that the headline GAAP operating loss of -US$217m is real — it reflects acquisition-related amortisation and restructuring that weighs on reported earnings quality — and the organic revenue growth of 12% (stripping out JET and Despegar) is solid but unremarkable. JET is explicitly flagged as an investment story requiring 12-18 months of capital deployment before it delivers measurable returns, and iFood faces intensifying competition. So what: the cash-generation story is credible and the dividend signals management confidence, but the market still needs the full audited statements to confirm operating cash conversion backs the adjusted earnings narrative.

The full audited statements are where the market will test whether adjusted earnings are translating into genuine operating cash flow, and what the net debt position looks like after the JET and Despegar acquisitions.

Evidence from the filing

  • Revenue up 51% reported to US$10,848m, with 12% local-currency growth excluding acquisitions signalling resilient organic momentum across ecosystems.

    “Revenue up to US$10 848m (FY25: US$7 181m)”

  • Group aEBITDA more than doubled to US$1,093m from US$499m (+119% reported, +63% in local currency excluding acquisitions), evidencing margin expansion.

    “Group adjusted earnings before interest, tax, depreciation and amortisation (aEBITDA) up to US$1 093m (FY25: US$499m)”

  • Free cash flow rose to US$1,490m from US$968m, with US$286m of organic improvement even after stripping out the Tencent dividend.

    “Free cash flow up to US$1 490m (FY25: US$968m)”

  • Prosus board recommended a 40% dividend hike to 28 euro cents per N share, signalling confidence in sustained cash generation.

    “Prosus board dividend recommendation per N ordinary share up to 28 euro cents (FY25: 20 euro cents) Increase 40%”

  • Operating result swung to a -US$217m loss from a US$124m profit in FY25, undercutting the adjusted-earnings growth narrative with a clear GAAP deterioration.

    “Operating (loss)/profit down to -US$217m (FY25: US$124m)”

  • Reported free cash flow of US$1,490m is lifted by the Tencent dividend; excluding it, FCF was only US$253m, signalling thin underlying cash generation.

    “Free cash flow up to US$1 490m (FY25: US$968m)”

  • Revenue rose 51% reported but only 12% in local currency ex-acquisitions, so headline top-line growth is largely inorganic from JET and Despegar, not core operations.

    “Revenue up to US$10 848m (FY25: US$7 181m)”

  • Competition increased meaningfully in H2 and iFood will require higher capital deployment over the next 12 months just to defend market leadership.

    “despite competition increasing meaningfully in the second half of the year”

  • This short-form announcement omits net debt, segment-level cash flow, and working capital detail; the audited full statements are only referenced, not yet released.

    “their unmodified report is appended to the full consolidated annual financial statements”
Category
Results
Event posture
Constructive
Published
Jun 29, 2026

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