Prosus Reports Strong Half-Year Earnings Boosted by Tencent Stake Sale

Deep News11-24

Prosus, the largest shareholder of Tencent, delivered robust half-year results on Monday, with net profit surging to $5.63 billion from $4.59 billion a year earlier. While its e-commerce business demonstrated strong growth, the Amsterdam-listed investment firm's performance remained heavily reliant on Chinese tech giant Tencent. A strategic 1% stake sale in Tencent generated a one-time gain of $3.3 billion, underpinning overall profitability.

Revenue rose to $3.62 billion from $2.96 billion year-on-year, exceeding market expectations. This growth was primarily driven by the expansion of its global e-commerce portfolio, particularly strong performances from Latin American food delivery platform iFood, European classifieds site OLX, and Indian fintech firm PayU. Adjusted EBITDA for its core e-commerce business jumped 70% to $530 million, signaling improving profitability beyond its Tencent holdings.

Despite Prosus' commitment to diversification, Tencent remains its financial anchor. As of last Friday's close, Prosus' stake in Tencent was valued at $163.5 billion. The latest earnings benefited not only from improved equity method income due to Tencent's stronger performance but also from tactical stake reductions. The company reaffirmed its FY2026 guidance, projecting e-commerce revenue between $7.3–7.5 billion and adjusted EBITDA of $1.1–1.2 billion.

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