Naspers Sharp Profit Jump, Boosts Prosus Dividend 100% – JSE: NPN Share Price Eyes Record Highs
Naspers delivered a strong set of full-year results, with a major swing to profitability, driven by its fast-growing e-commerce division...
Quick overview
- Naspers has shown strong resilience since January, with its share price climbing from 3,500 ZAC to a record high of 5,520 ZAC by mid-May.
- The company's recent earnings report indicated a 19.84% rise in net income and a 12.46% increase in revenue year-over-year, boosting investor confidence.
- Naspers' aggressive stock buyback program has improved earnings per share and valuation metrics, reflecting management's confidence in long-term prospects.
- Analysts are optimistic about Naspers' upcoming earnings report, projecting significant growth that could lead to a breakout above the current resistance level.
Naspers delivered a strong set of full-year results, with a major swing to profitability, driven by its fast-growing e-commerce division and Tencent’s solid performance.
A Resilient Climb from January Lows
Since trading near 3,500 ZAC in mid-January, Naspers Ltd. has displayed strong technical and fundamental resilience. By mid-May, the share price surged to a record high of 5,520 ZAC, forming a new resistance zone. While the stock experienced a sharp pullback in early April to around 4,000 ZAC, the 200-day simple moving average (SMA) acted as support, triggering a solid recovery and the share price has shown resilience, returning to the highs, as yesterday’s price action indicated.
NPN Stock Chart Daily – Will the 20 SMA Hold Again?
Late May brought another retracement, but the 20-day SMA provided a floor for buyers. Despite not breaking past the May high, the stock remains in an uptrend with higher highs and higher lows since early 2022. Key technical indicators suggest the bullish momentum is intact and the upcoming earnings data might send the NPN shares back on the uptrend toward new highs
Strong Earnings Fuel Optimism
Naspers has delivered a resounding earnings beat, with group profitability rebounding sharply after last year’s operating loss. Its fast-growing e-commerce segment, supported by a strategic focus on margin expansion, is now yielding tangible financial results. With Tencent’s contribution and strong capital discipline, the group has not only returned to profit but is also rewarding shareholders with a significantly increased dividend via Prosus. Naspers enters FY2026 with solid momentum and improving investor confidence.
FY2025 Key Financial Highlights (Ended 31 March):
- Group revenue rose 20% year-on-year
- From $6.4 billion (R116.5 billion) in FY2024
- To $7.2 billion (R130.1 billion) in FY2025
E-commerce was the main growth engine
- Consolidated e-commerce revenue grew 12% in USD terms and 21% in local currency, reaching $7 billion (R126.5 billion)
Core headline earnings jumped 46%
- From strong operating results and Tencent contributions
- Reached $3.1 billion (R56 billion)
Profitability Metrics Show Sharp Improvement:
Operating result turned positive
- FY2024: Operating loss of $562 million (R10.2 billion)
- FY2025: Operating profit of $124 million (R2.2 billion)
Net profit surged 86%
- From $6.6 billion (R120.2 billion)
- To $12.3 billion (R222.3 billion)
Adjusted EBITDA for e-commerce nearly doubled
- From $350 million (R6.4 billion) in FY2024
- To $697 million (R12.6 billion) in FY2025
E-commerce adjusted EBIT (aEBIT) showed dramatic gains
- FY2024: $24 million (R437 million)
- FY2025: $430 million (R7.8 billion)
Management Commentary:
- Nico Marais (Group CFO):
“Our topline growth is twice the rate of our peers. As our financial position improves, we’re sharing more with shareholders.” - Dividend news:
Prosus proposes a 100% dividend increase, from €0.10 to €0.20 (R4.16).
Strategic Transformation and Global Expansion
Naspers Limited (JSE: NPN) delivered a robust performance in a year marked by transformative change, cementing its status as a leading lifestyle e-commerce player across Latin America, Europe, and India. This success was underpinned by continued innovation and growing adoption of artificial intelligence across the Group’s platforms.
Surging Profitability in E-Commerce
The Group recorded strong financial results, with topline growth across its core operational segments outpacing competitors by a wide margin. E-commerce, in particular, was a standout performer. Profitability in this segment soared from US$24 million in FY2024 to US$430 million in EBIT for FY2025 — a nearly 18-fold increase. Management expects this momentum to continue, targeting at least US$430 million in additional aEBIT in FY2026.
Stronger Financial Position and Shareholder Returns
Excluding the contribution from Tencent dividends, free cash flow improved by US$263 million, reflecting tighter operational discipline and efficiency gains. This stronger financial footing has allowed Naspers to share more value with its shareholders.
In line with this, the Group has proposed a 100% increase in the Prosus dividend, raising it from €0.10 to €0.20, signaling growing confidence in its business model and future earnings potential.
Earnings Preview Points to Accelerating Growth
- Naspers and Prosus recently issued a bullish trading update ahead of their full-year earnings report, expected on June 23, 2025. Naspers projects:
- Core headline earnings per share (HEPS) to rise between 56% and 63%
- HEPS from continuing operations to climb between 90% and 96%
Meanwhile, Prosus forecasts:
- Core HEPS to grow between 53.9% and 63.2%
- Headline earnings for continuing operations to soar by 90.9% to 100%
These forward-looking estimates underscore the accelerating momentum within both companies and are likely to support further price gains.
Looking Ahead
With momentum building across key markets, Naspers enters FY2026 with a strong foundation and a clear roadmap focused on AI integration, operational profitability, and shareholder value creation. The Group’s strategic focus and disciplined execution continue to position it as a standout in the global e-commerce space.
Outlook: With support from both technicals and strong fundamentals, Naspers appears well-positioned for further upside. Analysts are optimistic that its digital business model, strategic execution, and disciplined capital returns will continue to drive performance through 2025.
Should the company confirm its strong earnings guidance on June 23, a breakout above the 5,520 ZAC resistance could open the door toward new all-time highs.
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