Afrikaans Annual Financial Statements
Naspers
 

PERFORMANCE REVIEW

IN THIS SECTION

FINANCIAL REVIEW

Consolidated revenues grew 26% to R62,7bn, boosted largely by growth in our internet businesses. Also influential was a rand that depreciated by an average of 19% over the period against a basket of our main operating currencies. To expand our ecommerce and DTT businesses, development spend accelerated by 79% to R7,7bn (2013: R4,3bn).

Net interest on borrowings increased to R1,261bn (2013: R636m), due to rand depreciation and increased borrowings to fund acquisitions and growth.

Tencent and Mail.ru reported strong growth. Our share of equity-accounted results includes once-off gains of R2,9bn from Mail.ru’s sale of shares in Facebook and Qiwi, as well as gains from Tencent merging some of its ecommerce businesses with JD.com and sale of its interest in ChinaVision. These non-recurring gains have been excluded from core headline earnings.

An impairment charge of R1,6bn has been recognised in other gains/losses and relates mainly to flash-sale fashion businesses in our ecommerce segment, such as FashionDays, Brandsclub and Markafoni. After these failed to achieve targets, we impaired goodwill and other intangibles in the first half of the year. In addition, our associate investment in Abril has been fully written down in the current year and is the main item included in impairment of equity-accounted investments.

A rather theoretical dilution loss of R852m on our equity-accounted investments was booked, mainly stemming from Tencent buying back its own shares.

For many years we have held our core headline earnings as the most reliable indicator of sustainable operating performance. In the past year, this measure was marginally higher at R8,6bn – R21,81 per N ordinary share. Free cash flow for the period was an outflow of R349m – largely due to capex for DTT networks and accelerated development spend.

Consolidated balance sheet gearing stands at 23%, excluding transponder leases and noninterest- bearing liabilities.



Significant acquisitions

Details of significant acquisitions appear in the summarised annual financial statements under “Business combinations and other acquisitions”.

Summarised annual financial statements

View the summarised financial statements in this integrated reoprt.The full financial statements for the year ended 31 March 2014 are available on our website at www.naspers.com.

Five-year review

R'm   2010   2011   2012   2013   2014  
Income statement items, including associates on a proportional basis            
Revenue
  37 251   45 103   56 522   76 776   104 981  
Trading profit
  8 537   10 546   11 762   14 326   15 613  
Statement of financial position                      
Total assets
  57 468   69 855   81 278   103 263   128 602  
Total equity
  35 634   42 942   49 576   55 853   68 205  
Total liabilities
  21 834   26 913   31 702   47 410   60 397  
Other information            
Development spend
  1 240   1 535   2 823   4 267   7 656  
Core headline earnings per share (cents)
  1 426   1 612   1 850   2 216   2 181  
Dividend per N ordinary share (cents) (proposed)
  235   270   335   385   425  
Weighted average number of N ordinary shares (’000)
  372 951   374 501   375 653   385 064   395 078