Naspers 6-month - Classified now profitable


On Friday at 15:00 Naspers released their 6-month numbers. I love reading about how all their global operations are doing; Naspers offers us in Mzanzi the opportunity to invest in the global tech space. Generally speaking, the movements in the Tencent share price are more influential on Naspers than their results, it is still worth seeing how their other ventures are doing.


Naspers adds to Swiggy investment


According to Bloomberg, it is rumoured that Naspers will again be participating in Swiggy's third fund-raising round of the year, where the company is looking to raise approximately $600 million. Swiggy is an online food-ordering and delivery business based in Bangalore, India. The company was founded in 2013 on the ethos of delivering food to the urban foodie from their favourite restaurants, a trend that is taking off like a rocket ship.


Naspers spins off Multichoice


As Michael alluded to earlier, Naspers will be spinning off Multichoice early next year. This is a significant move from a management team who are seriously trying to unlock value after a lot of pressure from shareholders.


Naspers CEO remuneration


Yesterday I spent the morning reading through Naspers remuneration reports from their last two financial years. Executive remuneration is always a tough subject to approach. What is the appropriate amount to pay the leaders of these multinational organisations? As I have said many times before, at the end of the day, it is a shareholder decision, and if shareholders don't object at the AGM then they can't complain. Also if you are not a shareholder, other things in South Africa are much more worthy of getting hot and bothered about.


Naspers FY numbers - still strong growth


On Friday Naspers reported their highly anticipated full-year results. The company has a huge following here in SA for obvious reasons. Before we look at the separate businesses, let's first look at the numbers.


Naspers sells Flipkart stake for $2.2 billion


The big news yesterday was Walmart confirming their $16 billion purchase of India's Flipkart. For Naspers, they ended up selling their entire 11.18% stake for $2.2 billion, very good going considering that they only invested $616 million. Over the last two months Naspers has realised $12 billion from sales in their holdings, a nice and juicy R150 billion looking for a home. Here is what the company say they have the money earmarked for:


Goldman's take on Naspers


Our most important local stock holding, by far, is Naspers. Its our largest holding in almost all JSE portfolios. In our view, it should be trading at twice the share price that it is today. The aggregate value of its various Internet and media assets far exceeds its current value on the market.


Naspers 6M numbers - growth keeps rolling


Last week we received interim 6 month results from Naspers. Being by far the biggest company on the JSE, this event now attracts a lot of attention. As expected, the results looked stellar on the back of another incredible period for Tencent. Let us take a look at the numbers which remember, are now reported in dollars.


Tencent 2Q - beat expectations


The Tencent 2Q numbers didn't disappoint when they were released after market close in Hong Kong yesterday. This was in the middle of our trading day, the Naspers share price immediately shot 4% higher. Tencent is up 3.5% today. The numbers beat on top and bottom line, with revenues up 59% YoY and EPS up 44% YoY. What is amazing is the QoQ growth, where revenue is 14% higher than 3 months ago and profits are 17% higher. Most companies would be happy with that level of growth over twelve months instead of just three.


Tencent's Moat


Tomorrow Tencent report 2Q numbers, probably the most significant set of numbers for the JSE even though they don't even trade here. The numbers are out at around lunchtime. In Jozi that will set the tone for Naspers and by extension our market. I found this very interesting slide show talking about why Tencent is such an amazing business, Tencent's Wide Moat. If you don't fully understand why we think Tencent and Naspers are such great businesses this slide should help.


Naspers FY Numbers - deeper look


We promised another take on the Naspers results from last Friday. This is about the most muted price reaction that I have seen in a while to the Naspers results. First things first, Naspers trades at a significant discount to the value of the stake that they have in Tencent. I can see why in some investors minds, this is more than a little irritating. For starters, as of the close of business in Hong Kong, the price of Tencent was 284 Hong Kong Dollars a share. That puts the market capitalisation at 2.69 trillion Hong Kong Dollars. 33.85 percent of Tencent (what Naspers owns) is 910 billion Hong Kong Dollars. Which equals more or less 1.513 trillion Rand! The Naspers market capitalisation was 1.13 trillion Rand, a gap of almost 400 billion Rand. i.e. minus 400 billion Rand for all the other businesses.


Naspers FY numbers, still going strong


On Friday we saw the release of one of the most widely held stocks here for our investors, and in fact a company that has attracted a lot of attention on both sides of the investment aisle for the better part of the last decade. Naspers. For one, a company founded in physical printing of newspapers over a century ago has managed to stay relevant with investments at the right time in the likes of satellite TV and of course the biggest home run of them all, a very early investment in Tencent. Recently there has been a more accelerated investment in internet enabled businesses and divestments of less core businesses in key geographies. Notwithstanding streaming technology taking hold, our continent is a little behind the curve, and the company managed to add nearly 600 thousand households to their satellite TV business over the last year.


Tencent 1Q numbers - still massive growth


Tencent reported numbers in the late morning yesterday. Tencent is difficult for most investors to understand. I don't talk for all investors, perhaps investors spend more time reading than they do partaking in role-player or single shooter games either on their PC or on their mobile phone. Plus, many investors in Naspers/Tencent do not get to experience the entire experience from the company, as it is in a different language and in many respects a closed off internet society, if that makes sense.


Tencent buys 5% of Tesla


A 13-G announcement from Tesla seemed innocuous at first glance - SCHEDULE 13G. However, if you dug a little deeper, you suddenly discovered that the investor was none other than Tencent, the Chinese business that we know very well, through our investments in Naspers. So how much is this exactly? We worked it out, they paid for the full stake (8,167,544 shares divided by 1,777,842,836 Dollars) 217.67 Dollars a share. At the closing value last evening, the stake is worth 2.266 billion Dollars. Tencent are now officially a five percent shareholder of Tesla, which is cool from our perspective down here in South Africa. Why? As a Naspers shareholder, who owns around 34 percent of Tencent, you now indirectly own a stake in Tesla.


Naspers sells non-core asset Souq


Another announcement that has to do with the shares that we own is that Souq finally sold to Amazon, even though the founder could have extracted more for his efforts. See the announcement on the Souq website - Joining the Amazon family. Ronaldo Mouchawar is an interesting guy, for one he is born in Aleppo, a city that has heartbreaking before and after pictures. He is tall, a former basketball player in his earlier days. He could have accepted a higher offer from another suitor, feeling however that the Amazon offer would do good by the customers.


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