Why is Prosus underperforming Naspers?

Research evidence excerpt

Why is Prosus underperforming Naspers?

iQprofile SM Prosus

Key Income Statement Data (Mar) 2024A 2025A 2026E 2027E 2028E Company Sector

(US$ Millions) Internet/e-Commerce

Sales 5,467 6,170 8,470 10,741 12,005

EBITDA Adjusted (13.0) 689 1,251 1,309 1,761

Depreciation & Amortization (170) (146) (272) (289) (296) Company Description EBIT Adjusted (183) 543 979 1,020 1,465

Net Interest & Other Income 5,723 6,797 2,472 (129) (152) Prosus N.V. is a global consumer Internet group with

Tax Expense / Benefit (161) (179) (165) (198) (244) exposure to best-in-class social networking, games and

Net Income (Adjusted) 5,003 7,370 8,628 8,910 9,675 eCommerce (classifieds, e-tail, food delivery, payments and

Average Fully Diluted Shares Outstanding 2,593 2,405 2,266 2,193 2,193 fintech, on-line travel). The Prosus' businesses and

Key Cash Flow Statement Data investments serve more than 2bn people in close to 100

Net Income (Reported) 8,093 8,652 9,211 8,910 9,675 markets. The group's key holding is a 22.8% stake in

Depreciation & Amortization 170 146 272 289 296 Tencent.

Change in Working Capital (457) 485 (222) (364) (65.4)

Deferred Taxation Charge 0 0 0 0 0

Other CFO (6,761) (7,363) (7,836) (7,264) (7,614)

Cash Flow from Operations 1,045 1,920 1,424 1,572 2,291 Investment Rationale

Capital Expenditure (42.0) (83.0) (128) (161) (180) We see three reasons to own Prosus: 1.Strategic shift

(Acquisition) / Disposal of Investments 7,412 10,379 (3,228) (182) (500) driven by management overhaul. 2. Clear levers to unlock

Other CFI (7,161) 1,579 10,874 1,000 1,000 value including portfolio unlock, open-ended buyback and

Cash Flow from Investing 209 11,875 7,518 657 320

attractive shareholder remuneration. 3. Deep value as

Share Issue / (Repurchase) (7,277) (8,420) (4,650) 0 0