South African conglomerate Naspers said on Wednesday that it expects earnings from continuing operations for the year that ended in March to surge by up to 124%, boosted by investment gains reported by China’s Tencent.
Naspers has a stake of just over 30% in Tencent, China’s biggest gaming and social media group.
The South African group said in a statement that it expects headline earnings per share (Heps), the main profit measure in South Africa, to rise by between 121% and 124% for the year that ended March 31, 2019.
Core Heps from continuing operations, which the board considers an appropriate indicator of operating performance, is expected to rise by between 24% and 26%, it said. It did not give a reason for the rise.
During the financial year that ended in March, Naspers spun out and separately listed its African pay-TV monopoly Multichoice. The results of that business will therefore be presented as results from discontinued operations, it said.
Naspers is due to report full year earnings on June 21.