Strong E-commerce Growth and …

This article first appeared on GuruFocus.

Release Date: November 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Naspers Ltd (NAPRF) reported strong growth in its e-commerce revenue, which increased by 14%, outperforming peers.

• The company’s adjusted EBITDA grew by 58%, indicating improved profitability.

• Free cash flow increased by $399 million, marking the largest ever free cash flow for the company, excluding Tencent dividends.

• Naspers Ltd (NAPRF) successfully integrated Despegar into its Latin American ecosystem, with 5% of Despegar’s net revenues now coming from iFood.

• The company completed significant acquisitions in Europe, including Just Eat Takeaway and La Central, enhancing its market presence.

• Emac faced macroeconomic and competitive challenges, resulting in flat revenue growth.

• The company anticipates intensified competition in the food delivery sector, which may impact market position.

• Naspers Ltd (NAPRF) needs to address the underperformance of its EE business, which is not meeting margin and growth expectations.

• Despite positive developments, the integration of Just Eat Takeaway requires cultural and technological adjustments to drive growth.

• The company is still in the early stages of implementing its AI-driven initiatives, with full benefits yet to be realized.

Q: Can you provide more details on the performance of your ecosystem in Latin America, particularly regarding iFood and Despegar? A: Fabricio Bloisi Rocha, CEO, explained that the Latin American ecosystem is thriving, with iFood at its core. The integration with Despegar has been successful, with 5% of Despegar’s net revenues now coming from iFood in less than six months. The ecosystem leverages high-frequency businesses like food delivery to cross-sell other services, enhancing customer loyalty and revenue.

Q: How is the company progressing in India, and what are the key growth drivers there? A: Fabricio Bloisi Rocha, CEO, highlighted that the Indian ecosystem is accelerating, with PayU showing improved profitability. The company has invested in high-growth companies like Rapido and Ixigo, which are expected to benefit from cross-selling and loyalty programs within the ecosystem. The focus is on connecting businesses to enhance growth and profitability.

Q: What are the recent developments in your European operations, particularly regarding acquisitions? A: Fabricio Bloisi Rocha, CEO, mentioned the completion of two significant transactions: the integration of La Centra and the acquisition of Just Eat Takeaway. These moves aim to strengthen Naspers’ classified business in Europe and create a leading food delivery asset. The focus is on cultural and technological adjustments to drive growth.

Q: Can you elaborate on the financial performance and future outlook for Naspers? A: Nico Marais, CFO, reported strong financial results for the first half of FY26, with e-commerce revenue growing by 14% and adjusted EBITDA increasing by 58%. The company achieved its largest ever free cash flow, excluding Tencent dividends. The outlook remains positive, with expectations to deliver $7.3 billion in top-line revenue and $1.1 billion in adjusted EBITDA for FY26.

Q: How is Naspers leveraging AI and innovation across its operations? A: Fabricio Bloisi Rocha, CEO, discussed the use of AI to enhance customer interactions and marketing efficiency. The company has implemented a large language model to predict customer behavior and optimize transactions. Additionally, AI-driven agents are being used to reduce costs and improve operational speed, with plans to expand these innovations across various services.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.