Afrikaans Annual Financial Statements
Naspers
 

THE NASPERS GROUP

IN THIS SECTION

CHAIR'S REPORT

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Results for the review period confirm the shift in our group’s business mix towards ecommerce, with half our revenue derived from international internet operations.

OVERVIEW

We are pleased to present our integrated annual report for the year to 31 March 2014 to stakeholders. This report was prepared using the recommendations of King III, Global Reporting Initiative (GRI G4) guidelines and global best practice, where appropriate

Results for the review period confirm the shift in our group’s business mix towards ecommerce, with half our revenue derived from international internet operations. Given the early stage of many of these operations and continued investment in their expansion, our pay-television businesses still account for the largest part of our trading profit. Naspers expanded its businesses and geographic coverage during the review period, posting growth in segment revenues* of 37% and consolidated revenues of 26%.

Core headline earnings were marginally up year on year, reflecting the fact that we are developing markets that we believe present above-average opportunities. The results of this focus are evident in the increased traction in our ecommerce activities, which attracted around 73% of our R7,7bn development spend.

On a 10-year view, the group has grown both segment revenues and trading profits at a compounded annual rate of around 25%.

The internet segment remains our area of fastest growth. Compared to under R1bn a decade ago, segment revenues grew to R57bn, with segment trading profits of R6,6bn. Segment revenues and trading profit for the internet, which includes our share of Tencent, Mail.ru, Avito, Flipkart and other internet associate investments, again exceeded those of pay television during the reporting period.

Margins in pay television were slightly lower due to increased investment in local content and DTT services, plus a volatile rand. Print businesses recorded lower earnings in very difficult trading conditions.

Looking ahead, we plan to build sustainable positions in growing markets. We focus on local language and culture, creating an entrepreneurial spirit and a quality workforce.




* Segment revenue includes our consolidated subsidiaries plus a proportionate consolidation of associated companies and joint ventures.



* Segment trading profit includes our consolidated subsidiaries plus a proportionate consolidation of associated companies and joint ventures.

GOVERNANCE
ENVIRONMENT IN WHICH WE OPERATE
MANAGING SUSTAINABILITY
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