Prosus expects profit surge on Tencent, ecommerce growth

Prosus expects core headline earnings per share from continuing operations for the six months ending September 30 to rise 20% to 29% from last year’s US$1.4.

The company, based in the Netherlands, cites the rise to its expanding ecommerce business and gains in the value of its Tencent stake.

Parent firm Naspers also projected a similar profit rise.

Prosus holds about 23% of Tencent, making it the Chinese company’s largest shareholder.

Both Prosus and Naspers plan to release interim results on November 24.

Tencent shares have risen 52% year-to-date in dollar terms, while Prosus shares are up 78%.

Prosus has been gradually reducing its Tencent stake as it focuses on growing its ecommerce operations.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Prosus’s profit jump ties to Tencent equity accounting and Ecommerce growth

Core headline EPS rose 20–29% with help from Tencent’s equity‑accounted earnings and from Ecommerce growth 1. Headline and core headline figures exclude gains from selling Tencent or other fair‑value remeasurements, yet they include Prosus’s share of Tencent’s underlying profits via equity accounting 1. Equity accounting records Prosus’s proportional share of Tencent’s profits, while core headline removes non‑recurring and mark‑to‑market items. If Tencent’s operating result weakens, reported core headline earnings would fall even if the share price does not move.
Prosus reached consolidated Ecommerce profitability for the year ended March 2024 2. The group also credits equity‑accounted holdings, notably Tencent, for growth 1. Consolidated means control with line‑by‑line reporting, while equity‑accounted means significant minority stakes with influence not control.

Buyback arbitrage turns Prosus’s NAV discount into per‑share gains

By May 2025 the open‑ended buyback returned over US$38 billion and lifted NAV per share by 15% 3. The programme has no fixed end date. Management plans to keep buying while the discount to NAV stays wide 3. Since the stock trades below asset value, each repurchase at a discount raises NAV per share for remaining holders.
Roughly 33% of the free float has been repurchased to date 3.
Track Prosus’s published NAV 4 plus weekly buyback notices to judge pace versus the discount. For example, it bought 1,576,035 shares at €57.5467 between 22–26 September 2025 5. It also bought 1,450,106 shares at €58.4410 between 13–17 October 2025 6.