Naspers is a global consumer internet company with a significant presence in the technology, media, and internet sectors. The company is listed on the Johannesburg Stock Exchange in South Africa and is one of the largest companies in the country by market capitalization. Naspers shares are highly sought after by investors due to the company’s strong track record of growth and profitability.
Naspers has a diverse portfolio of businesses, including some of the world’s leading consumer internet companies. The company has made significant investments in internet and ecommerce companies around the world, including Tencent, Delivery Hero, and Prosus. Naspers also owns a majority stake in Prosus, a global consumer internet group that includes some of the world’s leading online classifieds, food delivery, and fintech businesses.
Investing in Naspers shares can be an attractive option for investors looking to gain exposure to the fast-growing technology and internet sectors. The company’s strong financial performance and diverse portfolio of businesses make it a relatively low-risk investment option. However, like all investments, there are risks associated with investing in Naspers shares, and investors should carefully consider their investment objectives and risk tolerance before making any investment decisions.
Naspers and Its Corporate Structure
Naspers is a multinational media and internet company with operations in several countries. The company’s corporate structure has gone through significant changes in recent years, particularly with the removal of its cross-holding structure in September 2023. This move was aimed at simplifying the corporate structure and preserving the benefits gained from the listing of Prosus and from the share exchange transaction.
Before the removal of the cross-holding structure, Naspers had a complex corporate structure that involved cross-holdings in several businesses, including Prosus, Tencent, and South African businesses. However, this structure was seen as cumbersome and made it difficult for investors to understand the company’s operations fully.
The removal of the cross-holding structure has resulted in a more streamlined corporate structure that is easier to understand. This move has also ensured the continuation of the open-ended share repurchase program, which is designed to unlock value for shareholders and increase net asset value over time.
Naspers’ corporate structure now consists of two main entities: Naspers and Prosus. Naspers holds a significant stake in Prosus, which is listed on the Euronext Amsterdam stock exchange. Prosus, in turn, holds a portfolio of international internet assets, including a 31% stake in Tencent.
The removal of the cross-holding structure has also had a positive impact on Naspers’ South African businesses. These businesses, which include Media24 and Takealot, are now directly owned by Naspers and are no longer part of the cross-holding structure.
Overall, the removal of the cross-holding structure has simplified Naspers’ corporate structure and made it easier for investors to understand the company’s operations. This move has also ensured the continuation of the open-ended share repurchase program, which is aimed at unlocking value for shareholders and increasing net asset value over time.
Naspers’ Key Businesses and Investments
Naspers is a multinational media and internet group with a diverse portfolio of businesses and investments. Here are some of their key businesses and investments:
Media24 and Digital Media Business
Media24 is a South African media company that operates across print, digital, and e-commerce platforms. Naspers’ digital media business includes News24, 24.com, and Media24’s e-commerce platforms, such as Spree and Takealot.
Takealot, Mr D Food and Superbalist
Takealot is South Africa’s largest online retailer, offering a wide range of products, including electronics, fashion, and home appliances. Mr D Food is a leading food delivery platform in South Africa, and Superbalist is an online fashion retailer.
Autotrader and Property24
Autotrader is an online marketplace for buying and selling new and used cars, while Property24 is a property portal that connects buyers and sellers of residential and commercial properties.
PayU and Other E-commerce Companies
PayU is an online payment service provider that operates in emerging markets, including India, Turkey, and Russia. Naspers also has investments in other e-commerce companies, such as OLX, Letgo, and Swiggy.
Naspers has a strong focus on digital skills and innovation, with Naspers Labs providing support for early-stage tech companies. The company also invests in consumer internet companies and internet and e-commerce companies globally.
Overall, Naspers’ diverse portfolio of businesses and investments positions them as a major player in the media and e-commerce industries, with a strong focus on driving innovation and growth.
Naspers on the Stock Market
Naspers Limited (NPN) is a global internet and media group, with operations in over 120 countries. The company has a primary listing on the Johannesburg Stock Exchange (JSE) and a secondary listing on Euronext Amsterdam. Naspers also has a secondary listing on the A2X exchange.
Listing on Johannesburg Stock Exchange
Naspers has been listed on the JSE since 1994 and is one of the largest companies on the exchange. The company’s share price is denominated in South African rand (ZAR) and is traded under the symbol JSE. Naspers is included in the FTSE/JSE Top 40 Index, which is a benchmark index of the largest companies listed on the JSE.
Listing on Euronext Amsterdam
In addition to its primary listing on the JSE, Naspers has a secondary listing on Euronext Amsterdam. The company’s shares are traded on a over-the-counter basis under the symbol AMS. The listing on Euronext Amsterdam provides Naspers with access to a wider pool of investors and enhances the liquidity of its shares.
Listing on A2X Exchange
Naspers also has a secondary listing on the A2X exchange, which is a new stock exchange in South Africa. The A2X listing provides Naspers with an additional trading platform for its shares and offers investors an alternative venue for trading Naspers shares.
American Depository Receipt
Naspers has an American Depository Receipt (ADR) program, which allows US investors to invest in Naspers shares. Each ADR represents one Naspers share and is traded on the OTC market under the symbol NPSNY. The ADR program provides Naspers with access to US investors and enhances the visibility of the company in the US market.
Naspers is a major player in the classifieds, payments, and internet industries, with a portfolio that includes Prosus shares and Tencent shares. The company’s net asset value (NAV) is closely watched by investors, as is the discount to NAV at which the company’s shares trade. Naspers has also undertaken a share capitalisation issue to reduce the discount to NAV.
The Prosus portfolio is a key part of Naspers’ business, and the company is committed to growing this portfolio over time. Naspers also has a number of other securities in its portfolio, including free-float shareholders. The company’s strong position in the market and its commitment to growth make it an attractive investment for investors looking for exposure to the internet and media industries.
Financial Performance and Growth
Results and Reports
Naspers has been delivering strong financial performance with consistent growth in recent years. According to the latest financial reports, the company has reported a revenue growth of 18% for the year ending 31 March 2022. The company’s core operations have remained profitable, and it has continued to invest in long-term growth potential.
Share Repurchase Programmes
Naspers has implemented an open-ended share repurchase program, which allows the company to repurchase ordinary shares at any time. The program is part of the company’s strategy to enhance shareholder value and reduce the dilutive effect of employee share schemes. The share repurchase program is subject to certain limits and conditions, and the company provides regular updates on its implementation.
Dividends and Share Capitalisation Issue
Naspers has a policy of returning value to shareholders through dividends and share capitalisation issues. The company has a history of paying dividends, and it has increased its dividend payout in recent years. In addition, Naspers has implemented a share capitalisation issue, which allows shareholders to receive additional shares instead of receiving a cash dividend. The share capitalisation issue is intended to provide shareholders with a choice of how they wish to receive their returns.
Naspers has a strong financial position and a clear strategy for growth, which has attracted interest from technology investors. However, the company’s forward-looking statements, estimates, and assumptions are subject to risks and uncertainties, which could impact its financial performance. Naspers has disclosed these risks and uncertainties in its reports, and it takes no liability for any reliance on these statements.
Naspers and Social Responsibility
Naspers is committed to making a positive impact on society through various social responsibility initiatives. The company believes in empowering people and enriching communities by creating opportunities for economic activity and training.
Naspers Labs and Youth Development Programme
Naspers Labs is a social impact initiative that provides practical support and investment to a wide range of actors working towards building more inclusive communities. The initiative works with local NGOs and enterprise partnerships on innovation and execution. One of the key programmes under Naspers Labs is the Youth Development Programme, which aims to equip unemployed youth with the necessary skills to enter the job market. The programme provides training in areas such as coding, entrepreneurship, and digital marketing.
Empowering People and Enriching Communities
Naspers is committed to empowering people and enriching communities by creating opportunities for economic activity and training. The company believes that by investing in people and communities, it can create a positive impact on society. Naspers is involved in various social responsibility initiatives that aim to create opportunities for economic activity and training. These initiatives include partnerships with local NGOs and enterprise partnerships, as well as investments in education and training programmes.
In conclusion, Naspers is committed to making a positive impact on society through various social responsibility initiatives. The company believes in empowering people and enriching communities by creating opportunities for economic activity and training. Through initiatives like Naspers Labs and the Youth Development Programme, the company is helping to equip unemployed youth with the necessary skills to enter the job market and create a better future for themselves and their communities.
Risks and Uncertainties
Investing in Naspers shares comes with risks and uncertainties that potential investors should consider before making any investment decisions. Some of the risks and uncertainties associated with Naspers shares are:
Naspers shares are subject to market risk, which is the risk of loss arising from changes in market prices. Factors such as economic conditions, political instability, and changes in interest rates can affect the market price of Naspers shares.
Regulatory risk is the risk of loss arising from changes in laws and regulations. Naspers operates in various jurisdictions, and changes in laws and regulations in any of these jurisdictions can affect the company’s operations and financial performance.
Naspers operates in various currencies, and changes in exchange rates can affect the company’s financial performance. Fluctuations in exchange rates can lead to gains or losses for the company.
Naspers operates in a highly competitive industry, and there is a risk that the company may not be able to compete effectively with its competitors. Changes in market trends, new entrants, and technological advancements can affect the company’s competitive position.
Operational risk is the risk of loss arising from inadequate or failed internal processes, people, and systems, or from external events. Naspers operates in various industries, and there is a risk that the company may face operational challenges in any of these industries.
Naspers operates in a digital environment, and there is a risk of loss arising from cyber-attacks, data breaches, and other cybersecurity threats. These threats can lead to financial losses, reputational damage, and legal liabilities for the company.
Potential investors should carefully consider these risks and uncertainties before making any investment decisions. It is important to note that these risks are not exhaustive, and there may be other risks and uncertainties associated with investing in Naspers shares.
Legal and Regulatory Information
Naspers is a publicly traded company and is subject to various legal and regulatory requirements. As such, investors in Naspers shares should be aware of certain legal and regulatory information that may impact their investment decisions.
One important consideration is liability. Naspers is liable for any legal or regulatory violations that may occur in the course of its business operations. This means that if Naspers is found to have violated any laws or regulations, it may be subject to fines, penalties, or other legal consequences.
Another consideration is indirect liability. Naspers may be held responsible for the actions of its subsidiaries or other entities that it has a controlling interest in. This means that if one of these entities violates any laws or regulations, Naspers may also be held responsible.
Investors should also be aware of any regulatory updates that may impact Naspers shares. For example, in September 2023, Naspers underwent a share consolidation and capitalisation issue. Investors should consult the relevant regulatory announcements and disclosures for more information.
Overall, investors in Naspers shares should be aware of the legal and regulatory landscape in which the company operates. By staying informed and up-to-date on these issues, investors can make more informed investment decisions.
Frequently Asked Questions
Who is the current CEO of Naspers subsidiaries?
As of October 2023, the current CEO of Naspers subsidiaries is Bob van Dijk.
What is the current net worth of Naspers?
As of October 2023, the current net worth of Naspers is approximately £90 billion.
What is the current share price of Prosus on the JSE?
As of October 2023, the current share price of Prosus on the JSE is approximately ZAR 1,500.
Is Naspers stock a wise investment choice?
Investing in Naspers stock can be a wise choice for investors who are looking for long-term growth. However, as with any investment, it is important to conduct thorough research and analysis before making any investment decisions.
What is the current stock price prediction for Naspers?
Stock price predictions for Naspers can vary widely depending on a number of factors, including market conditions and company performance. It is important to note that stock price predictions are not guarantees and should not be relied upon as such.
Can I invest in Naspers stock?
Yes, investors can invest in Naspers stock through a variety of channels, including online brokerages and investment platforms. It is important to note that investing in stocks carries risks and investors should carefully consider their investment goals and risk tolerance before making any investment decisions.