At a Glance
- Naspers’ market capitalization surged by nearly $10 billion in 2024, surpassing $40 billion, solidifying its position as Africa’s most valuable company.
- Naspers’ share price rose 30.9% on the JSE, driving its value up by $9.66 billion, outpacing closest competitor, FirstRand.
- With $16.1 billion in cash and liquidity for expansion, Naspers is well-equipped to capitalize on future investment opportunities.
Naspers, the global consumer internet giant and one of the largest technology investors worldwide, has solidified its position as Africa’s most valuable company in 2024, with its market capitalization surging by nearly $10 billion this year.
The company’s market capitalization has now surpassed the $40 billion mark, reflecting the company’s strong performance despite global economic challenges.
According to recent research by Shore.Africa, Naspers’ market capitalization has jumped by R174.95 billion ($9.66 billion) since the start of the year, attributed to a 33 percent increase in its share price on the Johannesburg Stock Exchange (JSE), which has propelled its value from R565.73 billion ($31.24 billion) to R740.95 billion ($40.9 billion).
This impressive growth positions Naspers well ahead of its closest competitor, FirstRand, which currently has a market cap of R441 billion ($24.4 billion).
Naspers maintains liquidity for future expansion
Naspers, with its diversified global presence, is a dominant force not only in Africa but also in the international tech landscape. The company’s extensive portfolio includes more than 160 investments across over 100 markets worldwide.
Key holdings such as significant stakes in Tencent, the Chinese tech giant; Amsterdam-based Prosus; Netherlands-based payment provider PayU; and South Africa’s leading e-commerce platform, Takealot, highlight its strategic reach and influence.
In 2024, Naspers achieved a notable financial milestone, reporting an increase in revenue from $5.96 billion to $6.43 billion for the year ending March 31. This growth is complemented by a remarkable surge in headline earnings per share, which jumped from $1.19 to $7.59, underscoring the company’s robust financial health.
Despite a slight decline in total assets—from $65.5 billion in March 2023 to $62.3 billion in March 2024—and a decrease in retained earnings from $25.6 billion to $23.41 billion, Naspers remains well-positioned to navigate macroeconomic uncertainties.
A key strength that continues to support Naspers is its strong balance sheet. As of March 31, 2024, the company held $16.1 billion in cash and short-term investments, providing ample liquidity for future growth.
While not all of this cash is immediately accessible, Naspers estimates that around $8 billion is available for new investment opportunities, offering flexibility to capitalize on emerging ventures.
Strengthened portfolio supports long-term growth
Naspers maintains a robust financial position, with a net debt of $737 million, supported by $14.6 billion in central cash and cash equivalents, offset by $15.4 billion in central interest-bearing debt. Additionally, the company benefits from an undrawn $2.6 billion revolving credit facility, further bolstering its financial resilience.
Despite facing global economic headwinds, Naspers remains committed to preserving its investment-grade rating while effectively managing its balance sheet to foster long-term growth. The recent surge in Naspers’ share price, along with its strategic positioning within the global tech and consumer internet markets, underscores the company’s continued success.
With a dominant presence in the African corporate landscape and a growing reputation as a leading global technology investor, Naspers continues to strengthen its portfolio. This diverse and expansive portfolio not only provides growth opportunities but also ensures stability in an increasingly complex economic environment.
