Our opinion on the current state of PROSUS(PRX)
Naspers (NPN) separately listed Prosus (PRX) on the Euronext in Amsterdam on 11th September 2019, consolidating its international assets, including its stake in Tencent, Mail.Ru, and various internet brands. Naspers retains a 73% ownership of Prosus, with a 25% free float. The Euronext listing provides a key advantage as it mitigates the currency risk associated with the South African rand, making Prosus a rand-hedge; its value tends to increase when the rand weakens and vice versa.
Today, Prosus is Europe's largest consumer internet company. Its primary asset remains its 26% stake in Tencent, a Hong Kong-listed leader in social media and gaming in China, reaching over 1.1 billion users across China’s top mobile applications. However, Tencent faces regulatory risk from Chinese authorities, particularly in the gaming sector.
Prosus is a global consumer internet group active in 89 markets and a leader in 77 of those. Its services include Classifieds, Payments and Fintech, Food Delivery, and other online sectors like Etail and Travel. On 18th May 2022, Tencent reported that its profit for Q1 2022 was half of that in 2021, which negatively impacted Prosus shares. Then, on 24th June 2022, Prosus announced plans to sell a portion of its Tencent shares to finance an open-ended share buy-back program, which led to a positive market response. The re-election of Xi Jinping on 24th October 2022 contributed to a steep fall in Prosus shares, as his policies advocate for regulation of “disorderly expansion of capital” in China.
For the year ending 31st March 2024, Prosus reported:
- Revenue up 11%
- Core headline earnings up 84%
Prosus highlighted its share repurchase program, launched in June 2022, which reduced the free-float share count by 21% and generated US$30 billion in shareholder value.
Technically, Prosus has been on an upward trend since November 2023. Despite gains, the share still appears undervalued. The company announced on 18th September 2023 that CEO Bob van Dijk would step down with immediate effect, and Fabricio Bloisi was appointed CEO of both Naspers and Prosus, effective 1st July 2024. This leadership change could signal strategic shifts as Prosus continues to navigate its substantial international portfolio and ongoing buy-back program.
Today, Prosus is Europe's largest consumer internet company. Its primary asset remains its 26% stake in Tencent, a Hong Kong-listed leader in social media and gaming in China, reaching over 1.1 billion users across China’s top mobile applications. However, Tencent faces regulatory risk from Chinese authorities, particularly in the gaming sector.
Prosus is a global consumer internet group active in 89 markets and a leader in 77 of those. Its services include Classifieds, Payments and Fintech, Food Delivery, and other online sectors like Etail and Travel. On 18th May 2022, Tencent reported that its profit for Q1 2022 was half of that in 2021, which negatively impacted Prosus shares. Then, on 24th June 2022, Prosus announced plans to sell a portion of its Tencent shares to finance an open-ended share buy-back program, which led to a positive market response. The re-election of Xi Jinping on 24th October 2022 contributed to a steep fall in Prosus shares, as his policies advocate for regulation of “disorderly expansion of capital” in China.
For the year ending 31st March 2024, Prosus reported:
- Revenue up 11%
- Core headline earnings up 84%
Prosus highlighted its share repurchase program, launched in June 2022, which reduced the free-float share count by 21% and generated US$30 billion in shareholder value.
Technically, Prosus has been on an upward trend since November 2023. Despite gains, the share still appears undervalued. The company announced on 18th September 2023 that CEO Bob van Dijk would step down with immediate effect, and Fabricio Bloisi was appointed CEO of both Naspers and Prosus, effective 1st July 2024. This leadership change could signal strategic shifts as Prosus continues to navigate its substantial international portfolio and ongoing buy-back program.
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