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NASPERS LIMITED - Trading statement
Trading statement Naspers Limited (Incorporated in the Republic of South Africa) (Reg. No 1925/001431/06) JSE Share Code: NPN ISIN: ZAE000015889 LSE ADS Code: NPSN ISIN: US6315121003 ("Naspers") Trading statement Shareholders are advised that the Naspers group ("the group") is finalising its provisional report and consolidated annual financial statements for the year ended 31 March 2019. During the current year the group distributed its interest in its video-entertainment business, MultiChoice Group Limited (MultiChoice Group), to its shareholders as a pro rata distribution in specie (the distribution). Following the distribution, the results of the video-entertainment segment have been presented as results from discontinued operations. The prior year income statement has been restated to distinguish between continuing and discontinued operations. The group has illustrated the anticipated changes in core headline earnings, earnings and headline earnings per share for the year ended 31 March 2019 as compared to 31 March 2018 for both total operations (as previously reported) and continuing operations in the tables below: Total operations 31 March 2019 31 March 2018 expected Expected (as reported) increase/(decrease) increase/(decrease)% US cents US cents Core headline earnings per share(1) 581 180 - 191 31% - 33% Earnings per share(2) 2 631 (1 052) - (1 026) (40%) - (39%) Headline earnings per share(3) 416 491 - 503 118% - 121% Continuing operations 31 March 2019 31 March 2018 expected Expected (as reported) increase/(decrease) increase/(decrease)% US cents US cents Core headline earnings per share(1) 553 133 - 145 24% - 26% Earnings per share(2) 2 604 (1 641) - (1 614) (63%) - (62%) Headline earnings per share(3) 387 468 - 480 121% - 124% (1) Shareholders are reminded that the board considers core headline earnings an appropriate indicator of the operating performance of the group, as it adjusts for non-operational items. (2) Earnings per share was impacted significantly by the gain of US$1.6bn recognised on disposal of the group's interest in Flipkart Limited as well as by a gain recorded on the distribution of the MultiChoice Group to the group's shareholders. The latter gain is not part of earnings from continuing operations. The decline in earnings from the prior year was mainly due to the gain of US$9.1bn recognised on the sale of a 2% interest in Tencent Holdings Limited (Tencent) in March 2018, which is non-recurring in March 2019. (3) Headline earnings per share increased considerably as a result of the group's share of fair-value gains recognised by Tencent on certain of its investments now classified as at fair value through profit and loss in terms of IFRS 9 Financial Instruments. These gains are not adjusted for when calculating headline earnings per share. Further details will be provided in the summarised consolidated financial results, due for release on 21 June 2019. Financial information on which this trading statement is based has not been reviewed or reported on by the company's auditors. Naspers Limited Trading statement The group's summarised consolidated income statement and segmental review for the year ended 31 March 2018, restated for the presentation of the video-entertainment segment as a discontinued operation, is illustrated below. Summarised consolidated income statement 2018 for the year ended 31 March Restated(1) US$'m Continuing operations Revenue from contracts with customers 2 985 Cost of providing services and sale of goods (1 884) Selling, general and administration expenses (1 728) Other (losses)/gains - net ( 32) Operating loss ( 659) Interest income 52 Interest expense ( 197) Other finance income/(costs) - net ( 379) Share of equity-accounted results 3 285 Impairment of equity-accounted investments ( 46) Dilution (losses)/gains on equity-accounted investments 9 216 Gains/(losses) on acquisitions and disposals ( 93) Profit before taxation 11 179 - Taxation ( 70) Profit from continuing operations 11 109 Profit from discontinued operations 190 Profit for the year 11 299 Attributable to: Equity holders of the group 11 358 Non-controlling interest ( 59) 11 299 (1) Relates to the impact of adopting IFRS 15, as outlined in the group's interim results for the period ended 30 September 2018. Naspers Limited Trading statement Per share information 31 March 2018 US$'m Per share information related to continuing operations Core headline earnings for the period (US$'m) 2 388 Core headline earnings per N ordinary share (US cents) 553 Diluted core headline earnings per N ordinary share (US cents) 540 Headline earnings for the period (US$'m) 1 670 Headline earnings per N ordinary share (US cents) 387 Diluted headline earnings per N ordinary share (US cents) 374 Earnings per N ordinary share (US cents) 2 604 Diluted earnings per N ordinary share (US cents) 2 585 Per share information related to discontinued operations Core headline earnings for the period (US$'m) 120 Core headline earnings per N ordinary share (US cents) 28 Diluted core headline earnings per N ordinary share (US cents) 28 Headline earnings for the period (US$'m) 125 Headline earnings per N ordinary share (US cents) 29 Diluted headline earnings per N ordinary share (US cents) 28 Earnings per N ordinary share (US cents) 27 Diluted earnings per N ordinary share (US cents) 27 Net number of shares issued ('000) - at period end 432 126 - weighted average for the period 431 635 - diluted weighted average 433 003 Naspers Limited Trading statement Segmental review Trading Revenue EBITDA(1) profit Year ended 31 March 2018 2018 2018 US$'m US$'m US$'m Continuing operations Internet 15 863 3 342 3 013 Ecommerce 3 582 ( 655) ( 713) - Classifieds 628 ( 99) ( 114) - Payments and fintech 294 ( 60) ( 64) - Food delivery 166 ( 20) ( 30) - Etail 2 060 ( 248) ( 270) - Travel(2) 211 ( 59) ( 61) - Other(3) 223 ( 169) ( 174) Social and internet platforms 12 281 3 997 3 726 - Tencent 12 024 3 925 3 675 - Mail.ru 257 72 51 Media(4) 507 10 3 Corporate segment 2 ( 18) ( 22) Intersegmental ( 20) - - Total economic interest from continuing operations 16 352 3 334 2 994 Less: Equity-accounted investments (13 367) (3 744) (3 449) Total consolidated from continuing operations 2 985 ( 410) ( 455) Total from discontinued operations 3 672 669 415 Consolidated(5) 6 657 259 ( 40) (1)EBITDA refers to earnings before interest, taxation, depreciation and amortisation. (2) Travel revenue for the period ended 31 March 2018 has been reduced by US$65m due to the effect of the adoption of IFRS 15 on the group's associate MakeMyTrip Limited. This adjustment did not have an impact on EBITDA or trading profit. (3) The group historically allocated a portion of its corporate costs to the video-entertainment segment. Following the distribution of the MultiChoice Group to shareholders in the current year, and the consequent presentation of the video-entertainment segment as a discontinued operation, corporate costs are now only allocated to the ecommerce business. The group views these corporate costs as primarily relating to the support of the ecommerce business. In line with IFRS 8 Operating Segments the group has accordingly presented the comparative information contained in the segmental review on a similar basis. (4)31 March 2018 includes revenue of US$133.0m, EBITDA of US$33.3m and trading profit of US$33.3m relating to Novus Holdings Limited (Novus). The group distributed the majority of its shareholding in Novus to its shareholders in September 2017. (5)Includes the results of the video-entertainment segment which has been classified as a discontinued operation. Sponsor: Investec Bank Limited Cape Town 12 June 2019 Date: 12/06/2019 05:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.