Tech investor Prosus reports 82% fall in H1 profit

Technology investor Prosus (OTC:PROSF) NV on Wednesday reported an 82% drop in earnings per share for the half year ended Sept. 30, due to higher investment costs and a smaller contribution from its large stake in China’s Tencent Holdings (OTC:TCEHY) Ltd.

The reported earnings of $1.81 per share were in line with expectations after Prosus published a trading update on Monday, guiding for earnings of $1.32-$2.02 per share, compared with $10.07 a year ago.

Group revenue rose 9% to $16.5 billion.

Trading loss, a nonstandard measure that Prosus says reflects its operating performance, increased to $998 million from $522 million.

Prosus said it expects investment costs to fall going forward.

“Our business is well positioned for improvements in profitability and cash flow generation,” it said in a statement.

Prosus, controlled by Naspers of South Africa, has a 28.10% stake in Tencent, worth $95 billion at current prices.

Other companies in which Prosus owns a majority stake include the OLX classified markets, Brazilian meals delivery company iFood and India-focused payments company PayU.