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Tencent boosts Prosus revenue, e-commerce trading loss widens

AMSTERDAM/JOHANNESBURG, Nov 22 (Reuters) – Prosus, which owns a $175 billion minority stake in Chinese web gaming and social media group Tencent, posted an 8% rise in first-half trading revenue to $2.9 billion as income rose quickly in its general portfolio.

Sometimes in comparison with SoftBank and its Vision Fund, Prosus NV (PRX.AS), owns stakes in a variety of shopper web corporations, with returns from Tencent Holdings (0700.HK) dominating its general efficiency.

Although its web revenue spiked after Prosus booked a one-time revenue of $12.3 billion on the sale of a part of its Tencent stake, working losses at companies it controls elevated.

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Prosus mentioned in an announcement on Monday that revenues at its e-commerce portfolio had risen by 53% to $4.2 billion, whereas that phase’s trading loss elevated to $372 million from a loss of $214 million in the identical interval a yr in the past.

The e-commerce portfolio, which doesn’t embody returns from its holding in Tencent, spans a bunch of companies that Prosus both owns or controls in categorised promoting, meals supply, academic know-how and fintech and funds.

Prosus estimated the market worth of the e-commerce companies at round $49 billion.

It confirmed higher profitability in its classifieds companies, and robust progress at its meals supply companies, which incorporates iFood in Brazil and Swiggy in India.

The figures have been consistent with indications the corporate had given in a Nov. 16 pre-announcement. learn extra

Bob Van Dijk, the Prosus CEO, mentioned he didn’t count on China’s latest strikes to crack down on massive know-how companies to influence future earnings negatively.

“In spite of some regulation coming up … Tencent is in my view the best-positioned internet company in the most attractive internet market in the world,” he advised reporters on a name.

In August, Prosus arrange a cross-holding construction with Naspers (NPNJn.J), underneath which Prosus shareholders personal 60% of their underlying property however Naspers retains management. They share a single board.

In its separate earnings report, Naspers, South Africa’s largest firm by market capitalization, posted half-year income of $17.2 billion, up 29% from a yr in the past. learn extra

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Reporting by Toby Sterling and Promit Mukherjee; Editing by Kim Coghill, Muralikumar Anantharaman and Alexander Smith

A logo of Prosus is diplayed at Amsterdam's stock exchange building as Prosus begins trading on the Euronext stock exchange in Amsterdam, Netherlands, September 11, 2019. REUTERS/Piroschka van de Wouw/File Photo

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