Naspers, the global internet group spearheaded by South African billionaire Koos Bekker, encountered a noteworthy downturn in its earnings throughout the fiscal year 2023. The fiscal year concluded on March 31, 2023.
As stated in the company’s recently released annual report, Naspers witnessed a staggering decline in its profit after tax during the reviewed period. The figures dropped by over 46 percent, plunging from $18.54 billion in 2022 to $9.95 billion in 2023.
The decline can be attributed to multiple factors. Firstly, there was a decrease in gains from the partial disposal of equity-accounted investments, which includes the sale of Naspers’ stake in the Chinese multinational technology conglomerate Tencent. Additionally, the impact of dilution losses on equity-accounted investments further contributed to the downturn in earnings.
During the fiscal year, there was a notable decrease in gains from the partial disposal of equity-accounted investments. The figures declined from $12.43 billion in 2022 to $7.62 billion in 2023. At the same time, dilution losses on equity-accounted investments experienced an increase, rising from $18.54 billion to $9.95 billion.
Sale of Avito’s stake to Kismet Group
In October 2022, as part of a strategic initiative to maximize the value of its assets, Naspers made a significant move by entering into an agreement to sell its shareholding in Avito to Kismet Capital Group (Kismet). The transaction involved a total cash consideration of $2.4 billion.
Following the sale of Avito’s stake to Kismet Group, a private investment group known for its investments in Russian technology and telecommunications enterprises, Naspers recorded a gain on the disposal of the subsidiary. The total gain amounted to $568 million, which includes the reclassification of the accumulated foreign currency translation gain of $202 million.
What you should know about Naspers
Headquartered in Cape Town, South Africa, Naspers is a multinational investment holding company renowned for its diverse portfolio. Under the leadership of billionaire businessman Koos Bekker, the company engages in various sectors such as publishing, online retail, and venture capital investments, with a particular focus on the consumer internet industry.
With a current net worth of $2.4 billion, Koos Bekker embarked on his entrepreneurial journey back in 1985. It all started with the establishment of M-Net, a pay-television company that would later evolve into MultiChoice. Taking on the role of CEO at Naspers in 1997, Bekker’s strategic leadership played a crucial role in driving the company’s remarkable success.
A significant portion of Bekker’s wealth can be attributed to his ownership of a 0.85 percent stake in Naspers, the multinational investment holding company. Additionally, his contributions to Prosus, the Amsterdam-based investment group, have also resulted in a 0.72 percent stake, further contributing to his fortune.
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