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Prosus N.V., the global Internet group led by South African billionaire Jacobus Petrus Bekker, popularly known as Koos Bekker, has announced a profit warning for its 2023 fiscal year.
The warning comes as a result of a decline in profit at Tencent Holdings, the Chinese tech giant, in which Prosus owns a 26-percent stake. It also underscores the challenges faced by Prosus due to its interest in Tencent, but it remains optimistic about its diversified portfolio and its commitment to delivering value to shareholders.
Prosus, a division of the renowned South African multinational conglomerate Naspers, expects its earnings per share to drop by 21 to 28 percent, ranging between $0.50 and $0.68.
The decline can be attributed to regulatory crackdowns and China’s Covid Zero policy, which affected consumer and corporate spending, ultimately impacting Tencent’s earnings. However, with the reopening of the country, Tencent experienced a sales rebound from January through March.
To enhance shareholder value and bridge the gap between its Tencent stake and other holdings, Prosus has been gradually reducing its ownership in Tencent.
Over the past year, Prosus has decreased its stake from 29 percent.
Prosus, founded in 1997 under Bekker’s leadership, has grown into a global consumer Internet group and one of the world’s largest technology investors.
The company has an international portfolio comprising investments in prominent fintech, social media, ed-tech, and food delivery system firms.
Despite the anticipated earnings decline, Prosus shares on the Amsterdam Stock Exchange have displayed resilience, witnessing a more than two-percent increase this week.
The upward trend has pushed the share price to €68.53 ($74.74), surpassing the €135 billion ($145 billion) market capitalization milestone.
Bekker, who played a pivotal role in transforming Naspers from a South African newspaper publisher into a leading cable TV operator and e-commerce investor, holds a 0.72-percent stake in Prosus N.V.
This stake is valued at €972 million ($1.06 billion) at the current share price, contributing significantly to Bekker’s $2.5-billion fortune, which also includes stakes in Prosus’ parent company, Naspers.
