Naspers - TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT
Naspers Limited
(Registration number: 1925/001431/06)
(Incorporated in the Republic of South Africa)
ISIN ZAE 000015889 Share code: NPN
("Naspers" or "the company" or "the group")
TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT
In terms of the new Listings Requirements of the JSE Securities Exchange
South Africa ("JSE"), listed companies are required to publish a trading
statement as soon as they become aware that financial results for the next
period to be reported on will be materially different from those of the previous
corresponding period. Our group has a history of developing business
opportunities, which are largely expensed through the income statement. As a
consequence, the group has a fluctuating earnings pattern. In addition, the
imposition of new accounting standards on the group adds to the volatility of
reported earnings. Accordingly, we will seek guidance on the practical
application of these new requirements and the frequency of such trading updates.
The strong rand has had a mixed effect on our group. On the positive side,
some business units have substantial input costs denominated in foreign currency
and the strong rand will in due course help in this regard. Our print and pay-
television platform businesses and to some extent our book publishers will
benefit. On the other hand, units such as M-Net and SuperSport earn export
revenues in US dollars from services provided to countries elsewhere in Africa.
The strength of the rand has resulted in these US dollar revenues translating
into fewer rands. The volatility of the rand will also result in unrealised
translation gains or losses when reporting the group"s financial results.
The effect of heavy investment over the last five years in print
infrastructure is bearing fruit, with higher efficiencies. Our internet
businesses in the aggregate are approaching profitability, with the units in
Asia performing best. The pay-television platform businesses are also operating
well, with reduced losses expected from operations in Greece.
The net effect of this is that the group is presently trading better than
anticipated. Should this continue the results for the six months to 30 September
2003 may substantially exceed those of the corresponding period last year
(substantially means equal to or greater than 30% as defined in the JSE Listings
Requirements).
The forecast financial information has not been reviewed or reported on by the
group"s auditors. In light of the above, shareholders are advised to exercise
caution in trading in the company"s shares until the release of the interim
results, expected around 27 November 2003.
Cape Town
3 September 2003
Sponsor
Investec Bank Limited
(Registration number 1969/004763/06)
Date: 03/09/2003 01:25:03 PM Produced by the JSE SENS Department
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