Prosus to trim Tencent’s stake as core revenue falls in fiscal year

Prosus’ logo is depicted on a smartphone for the stock chart shown in this image, taken Dec. 4, 2021. REUTERS/Dado Ruvic/Illustration

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AMSTERDAM, June 27 (Reuters) – Prosus NV (PRX.AS), the Netherlands-based technology investor, Monday reported a 20% drop in its core earnings, a non-standard measure, for its fiscal year and also announced a major share buyback program .

The company plans to release its profit and loss figures later in the day.

Core profit for the fiscal year ended March 31 was $3.7 billion, compared to $4.9 billion a year ago.

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“The macroeconomic and severe geopolitical challenges in the second half of the year have created significant headwinds,” Chief Financial Officer Basil Sgourdos said in a statement.

Prosus and South African Naspers, which owns a majority stake in the Dutch company, said they launched an open-ended share buyback program, selling Prosus’ massive 28.9% stake in Chinese software giant Tencent, owner of WeChat. would sell. , worth more than $100 billion. read more

They also announced the sale of a stake in Chinese e-commerce company, which was distributed to Tencent owners, raising $3.7 billion in revenue.

The key figures were in line with indications the company had given in a June 15 trade statement that it expected underlying profit to fall 14-21% as a result of higher investment costs in the e-commerce businesses it operates and lower dividends from investments such as Tencent.

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Reporting by Toby Sterling; Editing by Sherry Jacob-Phillips

Our Standards: The Thomson Reuters Trust Principles.

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