Naspers' Fabricio Bloisi reports transformative growth as e-commerce profits soar to $443-million

Daily Maverick

23-06-2025

With a billion dollar swing in cashflow, profits from its e-commerce portfolio, and a R900bn buyback powered by Tencent, Naspers has entered its next act. CEO Fabricio Bloisi says the party has only just begun.
It's been 11 months since Fabricio Bloisi stepped into the corner office at Naspers and Prosus, the tech investment arm of the company. If their latest financial results are anything to go by, he picked a good time to join the party.
In the company's latest financial results, a surge in e-commerce adjusted gross profits to $443-million (R8-billion) was reported. This translated into a 100% dividend hike, a $1-billion (R18-billion) swing into free cash flow territory, and yet another leg in the marathon buyback programme.
If Bloisi is to be believed, 'we are just getting started'.
Positive cash flow
Two years ago, Naspers had negative cash flow, and was haemorrhaging billions across its portfolio. Today, its free cash flow is positive, and for the first time its e-commerce businesses are contributing more to the bottom line than the Tencent dividends that prop up the group's financials.
With Tencent already having paid its $1.2-billion (R22-billion) dividend for this year, the pressure to lean on it as a crutch has eased.
'We certainly have the ambition to grow this (e-commerce contribution) substantially in the year ahead,' said Naspers CFO Nico Marais, addressing the media after the company's annual financial results were announced on Monday, 23 June 2025.
The group is seeing scale and operating leverage kick in. iFood orders, which is their food delivery service in Brazil, hit 120 million in March alone, achieving 30% revenue growth.
OLX, the online marketplace, saw a 5% increase in its gross profit margin and a 60% profit increase. PayU India, a payment and fintech business owned by Prosus, came close to breaking even in the second half of FY2025.
'Adjusted EBIT (gross profit) for our e-commerce businesses was $443-million,' said Marais. 'Most importantly, that growth is translating into improved profitability.'
The AI flywheel
According to Bloisi's vision, AI is a key driver of the company's gains.
He sees AI as the connective tissue across Naspers' global portfolio.
'We talk about ecosystems, we talk about innovation, about AI, about how to have technology that is best in class in the world,' he said.
AI was already streamlining the company's operations through smarter customer support, optimised logistics, and personal marketing, Marais said.
'Our grocery business is far more efficient,' he said. 'They've improved its unit economics substantially over the past year. OLX's top line grew by about 18% — that shows the operating leverage that we have within the business where AI and other efficiencies are helping.'
Bloisi says they are pushing to lead in the tech ecosystems of Latin America, India, and Europe.
'I believe we should have much more investment in training, developing, and education related to AI… my expectation (is) that Prosus is going to lead this through Naspers.'
Shareholders are finally seeing daylight
While Naspers has never struggled with asset value on paper, the market has discounted its shares due to structural complexity and a negative perception in growth prospects.
Its buyback programme, launched in 2022 and funded by Tencent share sales, was intended to address this yawning discount between share price and net asset value.
'Through the share buyback we have now returned more than $50-billion to our shareholders,' Marais reported. 'We have improved the underlying net asset value per share by more than 15% and reduced the number of shares in issue by more than a third.'
The buyback programme will continue as a key component of the group's capital allocation strategy.
How does this affect you?
Naspers is doubling down on its e-commerce strongholds like Takealot and Mr D. Expect better deals and services.
Naspers says it's investing in AI talent and training, which could open up opportunities in tech and digital operations in South Africa.
If you hold Naspers of Prosus stock, rising dividends, buybacks, and stronger results could lift share prices.
Leveraging global talent to support local operations keeps entrants like Amazon on their toes, which is good for customers.
Buying, selling, and the next act
This past financial year was one of buying and selling at scale for the group.
It sold off $2.6-billion (R47-billion) in assets while simultaneously deploying $7-billion (R127-billion) in acquisitions, including the Despegar travel platform and a pending deal with Just Eat Takeaway.com
'We are going to keep the companies we believe in and the companies that help our ecosystem. If there are companies that don't help our ecosystems, we are going to cash out, sell, realise the investment and use the investment to keep growing,' said Bloisi.
For the year ahead, the group has $11-billion (R199-billion) ready for new investments, but the short-term focus remains on executing and integrating recent moves.
'My big focus now is to complete the Just Eat transaction and make sure we have exceptional operations if we deliver in Europe,' Bloisi said. 'After that, we are going to keep making aggressive moves to create a global leader.'
And what of South Africa?
While Prosus focused on growing in Latin America, India and Europe, Naspers was holding the fort at home. It was not interested in new African investments, for now, but was doubling down on South Africa's digital economy through its existing portfolios, Bloisi said.
The company's stake in Takealot, Superbalist, Mr D Food, Property24 and Autotrader is targeting the pipeline of becoming local champions.
'We are already investing more (in Takealot) than Amazon,' says Bloisi, adding that they were leveraging their global group — people from Brazil, India, and Europe working directly with Takealot.
'Our objective is to win the competition against the new entrants. We are from South Africa and we are there to win.'
Bloisi expects the market to catch up.
'My expectation is that (analysts) are going to read the new numbers and say: 'Oh my god, they are much better than we thought,' and update the numbers.' DM