Tencent boosts Prosus revenue, e-commerce buying and selling loss widens By Reuters

© Reuters. FILE PHOTO: A brand of Prosus is diplayed at Amsterdam’s inventory alternate constructing as Prosus begins buying and selling on the Euronext inventory alternate in Amsterdam, Netherlands, September 11, 2019. REUTERS/Piroschka van de Wouw/File Photograph

By Toby Sterling and Promit Mukherjee

AMSTERDAM/JOHANNESBURG (Reuters) -Prosus, which owns a $175 billion minority stake in Chinese language web gaming and social media group Tencent, posted an 8% rise in first-half buying and selling revenue to $2.9 billion as income rose quickly in its total portfolio.

Typically in comparison with SoftBank and its Imaginative and prescient Fund, Prosus (OTC:) NV, owns stakes in a variety of client web firms, with returns from Tencent Holdings (OTC:) dominating its total efficiency.

Though its web revenue spiked after Prosus booked a one-time revenue of $12.3 billion on the sale of a part of its Tencent stake, working losses at companies it controls elevated.

Prosus stated in a press release on Monday that revenues at its e-commerce portfolio had risen by 53% to $4.2 billion, whereas that phase’s buying and selling loss elevated to $372 million from a lack of $214 million in the identical interval a yr in the past.

The e-commerce portfolio, which doesn’t embrace returns from its holding in Tencent, spans a bunch of companies that Prosus both owns or controls in labeled promoting, meals supply, instructional know-how and fintech and funds.

Prosus estimated the market worth of the e-commerce companies at round $49 billion.

It confirmed higher profitability in its classifieds companies, and robust development at its meals supply companies, which incorporates iFood in Brazil and Swiggy in India.

The figures had been according to indications the corporate had given in a Nov. 16 pre-announcement.

Bob Van Dijk, the Prosus CEO, stated he didn’t anticipate China’s current strikes to crack down on giant know-how corporations to impression future earnings negatively.

“Despite some regulation arising … Tencent is in my opinion the best-positioned web firm in probably the most engaging web market on this planet,” he instructed reporters on a name.

In August, Prosus arrange a cross-holding construction with Naspers, below which Prosus shareholders personal 60% of their underlying property however Naspers retains management. They share a single board.

In its separate earnings report, Naspers, South Africa’s largest firm by market capitalization, posted half-year income of $17.2 billion, up 29% from a yr in the past.

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