Prosus, a major technology investor, reported a surge of 118 per cent in its core headline earnings during the first half of 2024. The company attributed this growth to enhanced profitability within its portfolio of e-commerce investments. In a statement, Prosus highlighted the culmination of years of investment and growth, noting that its businesses have now achieved scale and are showcasing improved profitability. Surpassing expectations, the company anticipates these investments to become profitable in the current financial year, six months ahead of schedule.
For the half-year period ending on September 30, core headline earnings reached USD 2.0 billion, compared to USD 1.1 billion in the corresponding period the previous year, aligning with the information provided in a November 20 trading statement.
Adjusting for currency fluctuations and business disposals, the company emphasized a 118 per cent increase in like-for-like comparison. Prosus considers core headline earnings a nonstandard measure that best reflects its group operating performance. This metric encompasses the substantial stake Prosus holds in China's Tencent, which has been reduced from 26.2% to 25% to support a rolling share buyback program.
Prosus justified the share buybacks by stating that they benefit shareholders, given that the Tencent stake, now valued at $98 billion, surpasses Prosus itself by approximately 30%. Additionally, among the various e-commerce companies within its portfolio, Prosus reported a 13% growth in revenue to $2.6 billion. The trading aspect showed improvement, with a narrowed loss of $36 million compared to the $256 million loss in the same period the previous year.