Prosus aims to achieve profitability for e-commerce portfolio ahead of schedule

Prosus, the Dutch internet investment holding company, aims to make its e-commerce portfolio, including companies like Delivery Hero and Flink, profitable even faster than anticipated. According to a recent announcement by Prosus, which is a subsidiary of Naspers, the e-commerce companies combined are expected to generate an operating profit in the second half of the current fiscal year 2024, ending in March. Previously, the management, led by interim CEO Ervin Tu, had set the target for profitability to be achieved one year later. Tu took over the position in mid-September from long-time CEO Bob van Dijk, who left unexpectedly. Prosus reported a revenue increase of almost 13 percent to nearly $2.6 billion (€2.3 billion) for the six months ending in September, compared to the same period last year. However, due to higher costs and depreciations, the company's operating loss widened to $415 million, compared to a loss of $86 million in the previous year. Despite this, Prosus was able to report a net profit increase of approximately one-third to nearly $3.4 billion, primarily due to significantly lower impairments on investments as well as higher interest income. The optimistic outlook for Prosus' e-commerce companies, including Delivery Hero and Flink, reflects the company's ambitions to capitalize on the growing demand for online services. These companies have been key players in the evolving e-commerce sector, providing convenient and efficient delivery solutions to customers around the world. The accelerated timeline for profitability demonstrates Prosus' determination to maximize the potential of its e-commerce portfolio. By achieving profitability earlier than expected, the company aims to create value for its shareholders and strengthen its position in the highly competitive e-commerce market. In summary, Prosus plans to achieve profitability for its e-commerce companies, including Delivery Hero and Flink, by the second half of fiscal year 2024, one year earlier than previously projected. The company reported a revenue increase of almost 13 percent for the six months ending in September, but also a widened operating loss due to higher costs. Nevertheless, Prosus managed to significantly increase its net profit, driven by lower impairments and higher interest income. The accelerated timeline reflects the company's determination to capitalize on the growing demand in the e-commerce sector.