Prosus delivered strong positive results for its classifieds segment rebounded in the second quarter of FY2021. Revenues from its classifieds division increased by 7% year-on-year to $635 million U.S.
In the first quarter, revenue fell by 18% due to the global pandemic lockdown impact, but rose by 30% in the following three months.
According to the company, the number of daily buyers and active users substantially increased across all of its main markets, including Russia, Poland, India and Brazil, “despite the initial decline in activity on our platforms in the first quarter.”
Avito, the No.1 horizontal in Russia, saw revenue grow 10% to RUB13.8 billion ($187 million). However, trading profit was down 37% to RUB5.1 billion ($69 million) due to increased investment in marketing and new product initiatives.
In the OLX Europe segment, Poland, Ukraine and Romania emerged as the best-performing markets. The region’s revenue grew 2% to $157 million, while overall trading profit margin came in at 44%.
OLX Brazil, a 50/50 joint venture with Adevinta, recorded trading profit of BRL 17 million ($3 million) despite a 5% decline in revenue to BRL 84 million ($15 million).
Larger losses from Frontier Car Group (FCG) brought trading profit down by 64% to $15 million. Nonetheless, there was no substantial drop in client engagement.
This year, FCG invested more than $600 million U.S. to strengthen its business.
Naspers with strong overall growth
Prosus’s parent company, Naspers, saw revenue grow 27% year-on-year to $13 billion for six months ending to 30 September. The company’s trading profit surged 42% to $2.6 billion, while core headline earnings amounted to $1.6 billion, according to the company’s announcement.
The South Africa-based group owns 72.66% of Prosus.
“Our strong performance reflects the resilience and adaptability of the group and of our teams to effectively navigate challenging times,” said CEO Bob van Dijk. “We entered the pandemic with financial strength and good momentum and in the second half of the period our businesses recovered well from the initial impact of Covid-19 and are now fundamentally stronger than they were going into the pandemic.”
On Monday, Naspers also launched a buyback program for Prosus to acquire up to $5 billion worth of shares in itself and Naspers.
“Our focus for the balance of FY21 will remain on driving growth, profitability and cash generation,” the company wrote.
The complete results are available here.