More than Tencent?

Naspers and Prosus delivered strong revenue growth in their latest results, with revenue increasing to $10.8 billion from $7.2 billion. However, the group reported an operating loss of $207 million, reflecting continued investment in growth initiatives and recent acquisitions.

While management is working to diversify the business, Tencent remains the dominant driver of value. The stake in Tencent was worth $112.8 billion in early July 2026, accounting for the majority of the group’s $148.4 billion net asset value. As a result, the performance and valuation of Tencent continues to have an outsized influence on both companies.

A key part of Naspers and Prosus’s strategy is reducing reliance on food delivery and building a broader ecosystem across e-commerce, fintech, classifieds and other digital businesses. Non-food delivery businesses now contribute more than half of group revenue, while the recently acquired Just Eat Takeaway will be a major focus area as management seeks to improve profitability and unlock value.

Prosus is also investing heavily in artificial intelligence. The group has developed a commerce-focused AI model that it believes can improve personalisation and operational efficiency across its portfolio companies.

Capital allocation remains supportive of shareholders. Naspers continues to buy back shares through its open-ended $5 billion repurchase programme, funded primarily by Tencent dividends and proceeds from the sale of non-core assets.

Despite these initiatives, investors should remain aware of several risks. Tencent’s valuation continues to be affected by negative sentiment towards Chinese investments, despite the company’s strong underlying fundamentals. At the same time, the success of Prosus’s diversification strategy remains unproven and will depend on the performance of businesses such as Just Eat Takeaway and other portfolio companies. Closer to home, Takealot has reached profitability, but Amazon’s entry into South Africa creates a significant competitive threat that could pressure future growth and margins.

The key question for investors is whether the non-Tencent assets can generate sufficient value to justify a higher valuation for the group. The next few quarters should provide a clearer indication of whether management’s diversification strategy is beginning to deliver meaningful results.