Prosus shares slip after investment group warns of earnings decline

By Scott Kanowsky

Investing.com -- Amsterdam-listed shares in Prosus (AS:PRX) moved lower on Tuesday after the Dutch e-commerce investment group warned that income would fall in a "significant" manner in the six months to September 30.

The company, which is controlled by South Africa's Naspers (JO:NPNJn), said in a statement on Monday that it now expects earnings per share during the period to slide by between 79.9% - 86.9% to 875 - 805 U.S. cents.

Prosus pointed to a tough comparison against the corresponding timeframe last year, when the sale of a 2% holding in Chinese tech giant Tencent (NYSE:TME) led to gains of $12.3B. But this year, the expected return from the offloading of Tencent shares is "only $2.8B."

Impairment charges and dilution losses related to other investments are also seen growing by $1.8B.

Meanwhile, core headline earnings per share - Prosus' preferred performance indicator that excludes non-operational items - is forecast to dip by as much as 60.3%.

"During the period, growth expectations and valuations came under significant pressure as consumers adapted to the realities of higher inflation and interest rates on their daily lives and spending power," Prosus added.

"The Group has taken action to meet these challenges and will take further action to continue delivering long-term value to our shareholders."

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