By Joe Hoppe


Naspers Ltd. said Monday that earnings per share for the first half of fiscal 2023 is expected to drop significantly on macroeconomic pressures and lower profits, though its ecommerce businesses maintained strong top-line growth momentum.

The South African company said it expects core headline earnings per share for the six months ended Sept. 30 to decline by between 228 cents and 257 cents from 416 cents at the same time a year prior, a decrease of between 55% and 62%. The company said this reflects investment in adjacent opportunities in ecommerce, lower contributions from associates and Tencent.

Earnings per share is expected to fall by between 2,467 cents and 2,679 cents, or 81%-88%, from 3,014 cents a year before, primarily reflecting a large one-off gain in the year prior, smaller expected gains on the sell down of Tencent shares over the period and higher impairment charges and dilution losses.

Headline earnings per share is also expected to decline by between 370 cents and 396 cents, having posted 368 cents a year before, due to lower profit from associates, including its share of Tencent's fair value losses on financial instruments.

Over the first half, growth expectations and valuations came under significant pressure as consumers adapted to the realities of high inflation and interest rates, the company said.

"The group has taken action to meet these challenges and will take further action to continue delivering long-term value to our shareholders," Naspers said.


Write to Joe Hoppe at joseph.hoppe@wsj.com


(END) Dow Jones Newswires

11-21-22 1128ET