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PROSUS N.V - Trading statement

Release Date: 16/11/2020 17:50
Code(s): PRX     PDF:  
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Trading statement

Prosus N.V. (previously Myriad International Holdings N.V.)
(Incorporated in the Netherlands)
(Trade Reg No 34099856)
AEX and JSE Share Code: PRX ISIN: NL0013654783

Trading statement

Shareholders are advised that the Prosus group (“the group”) is finalising its condensed consolidated
interim report for the six months ended 30 September 2020.

Prosus is a subsidiary of Naspers Limited (“Naspers”), a company incorporated in South Africa and
listed on the Johannesburg Stock Exchange (“JSE”) Limited in South Africa.

For context, in terms of the JSE Listings Requirements, South African listed entities with a primary
listing on the exchange are obliged to issue a trading statement as soon they are reasonably certain
that the upcoming financial results would differ by at least 20% from those of the previous
corresponding period. Trading statements are generally issued to provide shareholders with a range
of outcomes in respect of key financial metrics.

The financial results of Prosus almost completely account for Naspers’ results. Based on Naspers’
anticipated period ended 30 September 2020 results, Naspers is required to issue a trading statement
in terms of the above JSE listing requirements. To ensure that shareholders of Prosus are provided
simultaneously with equivalent information, Prosus is issuing this trading statement.

As outlined in the table below, the Group is expected to deliver good results for the first half ended
30 September 2020 despite the impacts of Covid-19.

We have completed several acquisitions in the first six months and have continued to explore growth
opportunities to advance our strategy, expand our ecosystem and to position the business for
continued long-term growth.

More details will be published with the condensed consolidated interim financial statements on
Monday, 23 November 2020.

The group has illustrated the anticipated changes in earnings, headline earnings and core headline
earnings per share for the period ended 30 September 2019 as compared to 30 September 2020 in
the tables below:

                                                      30 September 2020
                                     September                                        Expected
                                                       expected increase
                                       2019                                          increase %
                                                           US cents
                                      US cents
 Earnings per share (1)                    154                 26 – 35           16.9% – 22.7%
 Headline earnings* per share (1)           99                 47 – 53           47.5% – 53.5%
 Core headline earnings** per              105                 25 – 32           23.8% – 30.5%
 share (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. Core headline
earnings per share for the current period is expected to increase by between 25 and 32 cents per
share (between 23.8% and 30.5%). This reflects the continued growth in the group’s ecommerce
businesses and strong performance from Tencent.

Like most companies, in the period we faced some challenges due to Covid-19, particularly in countries
where government lockdown regulations were wide ranging and long lasting. However, we have seen
a sharp recovery in all of our impacted businesses as our contingency plans produced results once
lockdown regulations began easing. We continue to respond quickly to the evolving Covid-19 situation
to ensure we safeguard our people, maintain our ability to serve our customers and protect our                                                                                                     
businesses for the long-term. While forward visibility remains difficult, given the challenges some
countries face in dealing with the longer-term effects of Covid-19, we continue to believe we will
benefit from the acceleration of the trends that have propelled the growth of the consumer internet.

Financial information on which this trading statement is based has not been reviewed or reported on
by the company’s auditors.

JSE sponsor (South Africa): Investec Bank Limited

Amsterdam, the Netherlands
16 November 2020

* Headline earnings represent net profit for the period attributable to equity holders of the group, excluding certain defined separately identifiable
remeasurements relating to, amongst others, impairments of tangible assets, intangible assets (including goodwill) and equity-accounted investments, gains
and losses on acquisitions and disposals of investments as well as assets, dilution gains and losses on equity-accounted investments, remeasurement gains and
losses on disposal groups classified as held for sale and remeasurements included in equity-accounted earnings, net of related taxes (both current and deferred)
and the related non-controlling interests. These remeasurements are determined in accordance with Circular 1/2019, Headline Earnings, as issued by the South
African Institute of Chartered Accountants, pursuant to the JSE Listings Requirements.
** Core headline earnings, a non-IFRS performance measure, represent headline earnings for the period, excluding certain non-operating items. Specifically,
headline earnings are adjusted for the following items to derive core headline earnings: (i) equity-settled share-based payment expenses on transactions where
there is no cash cost to the company. These include those relating to share-based incentive awards settled by issuing treasury shares as well as certain share-
based payment expenses that are deemed to arise on shareholder transactions; (ii) deferred taxation income recognised on the first-time recognition of deferred
tax assets, as this generally relates to multiple prior periods and distorts current period performance; (iii) fair-value adjustments on financial instruments and
unrealised currency translation differences, as these items obscure the group's underlying operating performance; (iv) once-off gains and losses (including
acquisition-related costs) resulting from acquisitions and disposals of businesses, as these items relate to changes in the composition of the group and are not
reflective of its underlying operating performance; and (v) the amortisation of intangible assets recognised in business combinations and acquisitions and (vi)
donations made to various governments in assisting with the Covid-19 pandemic, as these expenses are not considered operational in nature. These adjustments
are made to the earnings of combined businesses controlled by the group as well as the group's share of earnings of associates and joint ventures, to the extent
that the information is available.

(1) Per share information is based on the net number of A and N ordinary shares in issue during the respective periods.


Date: 16-11-2020 05:50:00
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