Prosus, the technology holding firm being carved out of South Africa’s Naspers, registered a 31% rise in second quarter profit to $1.40 billion, thanks to its stake in China’s Tencent, its prospectus showed on Monday.
Prosus, which is to float on Amsterdam’s Euronext stock market on September 11, holds Naspers’ 31.1% stake in Tencent, worth around $120 billion at current prices.
Shares in Prosus are not being sold directly to the public. Naspers is distributing 17-27% of Prosus shares to its own shareholders in the offering.
Prosus is a holding company for not only the Tencent stake, but also Naspers’ other international technology businesses, which include an array of social networking, food delivery, online travel bookings, payments and other companies.
Most of them grew revenues but suffered trading losses in the most recent quarter ended June 30, the prospectus showed. Overall, Prosus reported a second quarter operating loss of $119 million, widening from a $74 million loss in the same period of 2018.
The Tencent stake contributed trading profits of $1.20 billion in the quarter. Overall net profit was $1.07 billion in the year-ago quarter.