Sectors Shares

Naspers Limited - Condensed Consolidated Interim Report For The Six Months Ended 30 September 2016

Release Date: 25/11/2016 16:00
Code(s): NPN
 
Wrap Text
Condensed consolidated interim report for the six months ended 30 September 2016

Naspers Limited
Incorporated in the Republic of South Africa
(Registration number 1925/001431/06)
(Naspers)
JSE share code: NPN ISIN: ZAE000015889
LSE share code: NPSN ISIN: US 6315121003

Condensed consolidated interim report
for the six months ended 30 September 2016

COMMENTARY

Naspers had a strong six months to 30 September 2016. Operating performance, mainly driven by continued performance from the ecommerce
businesses and Tencent, is encouraging. As part of regular portfolio reviews, four notable transactions were concluded by the date of this report.
In Poland the agreed sale of the Allegro business for US$3.25bn realises a solid return on investment. The merger of the ibibo platform
with MakeMyTrip creates a leading business in the Indian travel segment. The acquisition of Citrus Pay drives consolidation in the Indian
online payments space, while the consolidation with Wallapop gives mobile-only classifieds platform, letgo, increased scale in the United States
(US). The video-entertainment segment experienced weak African currencies. However, the team delivered a pleasing return to subscriber growth, 
with subscribers closing at 11m.

Currency has again had a significant impact. Unlike the earnings effect of falling currencies on the video-entertainment segment, in ecommerce
this impact is diffused by the group's diverse geographic spread and the fact that costs are mainly incurred in local currencies. Where relevant
in this report, we have adjusted amounts and percentages for the effects of foreign currency moves as well as acquisitions and disposals.
Such adjustments (pro forma financial information) are quoted in brackets after the equivalent metrics reported under International Financial
Reporting Standards (IFRS). A reconciliation of pro forma financial information to the equivalent IFRS metrics is provided in note 15 of this
condensed consolidated interim report.

Tencent and the ecommerce businesses, excluding currency impacts, accelerated our revenue growth. Revenues were US$6.8bn on an economic-
interest basis, growing 16%. Excluding the impact of currency translation, and acquisitions and disposals, growth was 27%. In ecommerce, the
classifieds operations, ibibo, Allegro and eMAG, all improved topline growth and earnings as a result of increased scale. PayU delivered
good results across its portfolio in Eastern Europe, India and Latin America. Core headline earnings, which the board believes to be the best
measure of sustainable operating performance, was US$914m - up 31% on the prior period.

The following financial commentary and segmental reviews were prepared on an economic-interest basis (including consolidated subsidiaries
and a proportionate consolidation of associated companies and joint ventures) unless otherwise stated.

FINANCIAL REVIEW
On a consolidated basis, revenue declined marginally by 1% (up 11%), largely due to the effects of currency translation. Disposals concluded in
the first six months of the year, notably the Czech ecommerce units, Netretail and Heureka, also reduced year-on-year revenue growth.

Consolidated development spend increased 38% (42%) year on year to US$387m as new growth initiatives were pursued. This includes
letgo, predominantly operating in the US, building the hotel offering in the Indian travel business and our subscription video-on-demand
unit, ShowMax, launched in August 2015. Development spend on these new initiatives totalled US$188m. Across the rest of the portfolio,
development spend declined by US$40m, as the ecommerce businesses, particularly classifieds, increased scale and profitability.

Trading profit increased 21% (42%) to US$1.5bn, boosted by the group's share of Tencent's trading profit. Trading profit was further boosted by
a contraction in losses of etail assets and increased profitability in Allegro. A lower opening subscriber base in sub-Saharan Africa, coupled with
the effects of foreign exchange, saw video-entertainment trading profits decline some 43% (14%) to US$226m.

IFRS operating profit declined from a positive US$67m to a negative US$30m, mainly due to currency weakness in the video-entertainment
segment and increased development spend to pursue growth initiatives.

The group's share of equity-accounted results increased 44% year on year to US$912m and includes once-off gains of US$206m and impairment
losses of US$145m. Once-off gains relate primarily to dilutions of Tencent's interest in certain of its associates, and gains arising on disposals of
other investees and impairment losses relate to writedowns by Tencent of certain of its investments. The contribution to core headline earnings
by associates and joint ventures was up 47% to US$1.1bn after adjusting for these non-recurring items.

Net interest expense on borrowings was down 18% to US$74m after the repayment of the group's revolving credit facility. On 30 September 2016
net gearing stood at 13%.

Lower profitability of the sub-Saharan Africa video-entertainment business and higher consolidated development spend were the main causes
of a marginal US$1m consolidated free cash outflow.

The company's external auditor has not reviewed or reported on forecasts included in this condensed consolidated interim report.

SEGMENTAL REVIEW
Internet
Ecommerce businesses and Tencent contributed to strong growth in the internet segment with revenues of US$4.9bn - up 30% (40%) year on
year. After adjusting for the impact of currency translation and acquisitions and disposals, it is 12% better than last year's growth. Trading profits
increased 54% (71%) on the back of Tencent's performance as well as contraction of losses in many of the ecommerce businesses. The internet
segment now contributes 72% of group revenues measured on an economic-interest basis, up from 64% a year ago.

Tencent
Tencent continues to expand its ecosystem with excellent revenue and user growth recorded in the social network, online games, digital
content, advertising as well as payment platforms. Revenues were RMB67.7bn for the period, up 48% year on year.

Tencent's social networks business grew revenues through growth in mobile games and payments, and a solid 24% increase in subscribers to
its digital content subscription services. Online media platform traffic and advertising revenue continue to lift with most traffic, representing 
about 80% of revenue, now generated on mobile platforms.

Tencent implemented several strategic initiatives to advance its ecosystem and improve entertainment content for users. Tencent invested in
Supercell, the Finnish-based mobile game studio, thereby expanding its upstream presence in the global game industry. QQ Music was merged
with China Music Corporation to create a more useful online music platform. Tencent also boosted its online video offerings via 
investments in content.

During the reporting period, Tencent made good progress in building its mobile ecosystem by growing monthly active Weixin/WeChat users
by 34%. It also improved Weixin/WeChat's enterprise communications products, expanded its cloud services capabilities and simplified its
payment solutions for merchant transactions.

Mail.ru
Despite continued challenges to the Russian economy, Mail.ru revenues grew 11% year on year to RUB18.8bn. Advertising revenue, especially
that of mobile, grew as a result of higher mobile audiences and advertising inventory as well as the implementation of new advertising
technologies. The social network VK grew engagement and audiences, however, online games and internet value-added services revenues
were weaker.

Ecommerce
Volatility of emerging-market currencies reduced performance when translated to US dollars. Ecommerce businesses are growing rapidly,
with revenues increasing 14% (24%) to US$1.4bn. Trading losses declined to US$292m, a 1% (14%) improvement on the prior year. Higher
development spend on new opportunities was offset by growth in established businesses. Within this portfolio, the group now has 23 profitable
businesses - up from 18 a year ago.

Classifieds revenue grew 115% (76%) year on year, driven by strong performances across the portfolio and boosted in particular by Avito.
Excluding the investments in letgo, trading losses (and thus development spend) reduced across the classifieds portfolio as we grew and gained
market share. Solid results were evident, particularly in monetising markets.

Avito performed ahead of expectations and improved its presense in Russian ecommerce.

In May 2016 the US operations of letgo merged with the local component of Wallapop. Shareholders collectively injected US$100m into the
merged business to accelerate growth. Results to date are encouraging and further substantial investment will follow.

Growth in car, and in some markets, real estate verticals, coupled with the launch of mobile apps, combined to strengthen classifieds.

Etail revenues grew 3% (16%), powered by assets in Central and Eastern Europe (CEE), where online penetration is rising. Growth was lower in
etail associates, as third-party sales (where we book a take rate only) continued to grow faster than first-party sales. There was also a reduction
in subsidies and a focus on improving gross margins.

In CEE, the consolidated etail platform eMAG performed well, growing revenues year on year by 33%. Romania is approaching sustained profitability.

Amazon, on the back of heavy investment, closed the gap on Flipkart by taking significant share from Snapdeal in the Indian etail
segment. Flipkart nevertheless maintains its firm lead on the mobile app. Recent strategic initiatives delivered healthy numbers over the peak
Diwali sales period. In the Middle East, Souq continued to gain share in Saudi Arabia and Egypt, while remaining the market leader in the
United Arab Emirates.

Allegro, the marketplace platform in Poland, grew revenue by 30% to US$193m. In October 2016 the group announced the sale of Allegro and
Ceneo for US$3.25bn. The transaction is subject to regulatory approval and is expected to close in 2017.

ibibo, the Indian travel business, had an excellent six months with revenue increasing 68% (75%) to US$67m. This was fuelled by growth in hotel
room nights and a profitable air-travel business. After the reporting period the group entered into a transaction to merge ibibo with MakeMyTrip
Limited. The merger will result in a combined business that provides a one-stop shop for Indian travellers. Through a jointly owned holding
company (91% held by Naspers and 9% by Tencent), the group will have a 40% stake in the merged business as its single largest shareholder.

The group's payments business, PayU, performed well across all operating regions. Revenue grew 22% (29%) year on year to US$83m on the
same cost base. This was achieved through improved operating leverage which, in turn, was driven by transaction volumes and ticket-size
improvements. In India, PayU acquired a controlling interest in Citrus Pay after the reporting period. This will see PayU becoming a leading
payment service provider in India.

We are now identifying new pockets of long-term growth for the group in one entity, Naspers Ventures. Ventures invested in three early-stage
educational technology companies: Udemy, an online marketplace for learning; Codecademy, a leading online interactive coding platform; and
Brainly, a social learning network. Each company focuses on a different section of the education market and has an innovative approach to
increasing the utility and value of education.

Movile, the leading Latin American mobile services platform, continues to grow its offline-to-online businesses. Brazilian online food-delivery
business, iFood, expanded successfully into Mexico, Brazil and Colombia. After growing revenues by some 211% year on year, the business
turned profitable during this reporting period.

Video entertainment
Action taken in response to a weaker macroeconomic backdrop yielded positive results with the direct-to-home (DTH) business recording positive growth, 
adding some 591 968 subscribers. This is an improvement on the decline of 164 300 subscribers for the same period in the previous year. The DTT business 
also added 149 875 subscribers. The total customer base closed at 11m on 30 September 2016. 

The segment reported revenues of US$1.6bn, down 8% (up 6%) on the prior year. Trading profit declined by 43% year on year to US$226m. As the group bills 
in local currencies, the continued weakness of currencies and economies in many African countries resulted in lower US dollar revenues. A sizeable portion 
of content costs are US dollar-denominated which, coupled with the reduction in revenues and our investment in ShowMax, impacted trading profit. 
Constrictions in foreign exchange availability in Nigeria, Angola and Mozambique have resulted in cash balances of US$202m being trapped in these countries. 
These balances remain exposed to further currency depreciation.

Development spend was US$40m, down marginally year on year. This was attributable to the decrease in spend as a result of the completion
of the digital terrestrial television (DTT) rollout, offset by new investments to scale ShowMax.

ShowMax is growing steadily in a very competitive environment. It is available on all major platforms and can now be accessed through
connected Explora devices. ShowMax was also launched in a number of sub-Saharan markets.

Our focus remains on providing the best quality local and international content while managing costs, improving customer service and
retaining subscribers in an environment where there is intensifying competition from global players such as Amazon, Netflix, Apple and Google.
DStv Catch Up was made available to Compact customers, as well as a decoder payment plan, which boosted the uptake of our personal video
recorders (PVRs). Connecting the PVR to the internet delivers a better user experience. The 'TV everywhere' product, DStv Now, is showing
good levels of adoption across all platforms.

Management continues to engage regulators and participate in a number of regulatory reviews in various markets.

Media
Revenue in the media segment declined 13% (1%), with trading profit down 25% (31%). Although Media24 continues to face the effects
of structural declines in its traditional print business, revenue performance of its ecommerce initiatives was positive, benefiting from fresh
product offerings.

Prospects
In the second half of the financial year we hope to deliver revenue growth and scale the more established ecommerce businesses. The group
will continue to invest in long-term opportunities such as letgo, and seek further promising models within the internet segment. We expect
to accelerate letgo's development spend to further strengthen its position in the US classifieds market. In African video entertainment, a
tough environment at present, we aim to grow DTH customers by offering increased value and reducing costs to counter the impact of falling
currencies. Earnings and cash flows in this segment will continue to be constrained in the foreseeable future.

Preparation of the condensed consolidated interim report
The preparation of the condensed consolidated interim report was supervised by the financial director, Basil Sgourdos CA(SA). These results
were made public on 25 November 2016.

On behalf of the board

Koos Bekker                                                           Bob van Dijk
Chair                                                                 Chief executive

Cape Town
25 November 2016

Condensed consolidated income statement
             
                                                                                                       Six months ended        Year ended
                                                                                                         30 September            31 March
                                                                                                         2016          2015          2016
                                                                                                     Reviewed      Reviewed       Audited
                                                                                            Notes       US$'m         US$'m         US$'m
Revenue                                                                                                 2 958         2 983         5 930
Cost of providing services and sale of goods                                                          (1 627)       (1 644)       (3 392)
Selling, general and administration expenses                                                          (1 334)       (1 133)       (2 423)
Other gains/(losses) - net                                                                               (27)         (139)         (292)
Operating (loss)/profit                                                                                  (30)            67         (177)
Interest received                                                                               5          29            21            40
Interest paid                                                                                   5       (136)         (137)         (292)
Other finance income/(costs) - net                                                              5        (58)          (40)         (100)
Share of equity-accounted results                                                               7         912           635         1 289
Impairment of equity-accounted investments                                                                  -           (1)          (55)
Dilution (losses)/gains on equity-accounted investments                                                  (71)           129           104
Gains on acquisitions and disposals                                                                        39           108           452
Profit before taxation                                                                          6         685           782         1 261
Taxation                                                                                                (144)         (146)         (260)
Profit for the period                                                                                     541           636         1 001
Attributable to:              
Equity holders of the group                                                                               554           610           994
Non-controlling interest                                                                                 (13)            26             7
                                                                                                          541           636         1 001
Core headline earnings for the period (US$'m)                                                   4         914           696         1 246
Core headline earnings per N ordinary share (US cents)                                                    212           169           298
Fully diluted core headline earnings per N ordinary share (US cents)                                      209           166           292
Headline earnings for the period (US$'m)                                                        4         555           468           701
Headline earnings per N ordinary share (US cents)                                                         129           114           168
Fully diluted headline earnings per N ordinary share (US cents)                                           126           111           162
Earnings per N ordinary share (US cents)                                                                  129           148           238
Fully diluted earnings per N ordinary share (US cents)                                                    125           145           232
Net number of shares issued ('000)             
- at period-end                                                                                       431 290       412 555       431 085
- weighted average for the period                                                                     431 085       411 998       417 575
- fully diluted weighted average                                                                      432 715       413 746       419 208

Condensed consolidated statement of comprehensive income

                                                                                                   Six months ended            Year ended
                                                                                                     30 September                31 March
                                                                                                     2016          2015              2016
                                                                                                 Reviewed      Reviewed           Audited
                                                                                                    US$'m         US$'m             US$'m
Profit for the period                                                                                 541           636             1 001
Total other comprehensive income, net of tax, for the period(1)                                       291         (226)               374
Translation of foreign operations(2)                                                                (115)         (497)             (309)
Net fair-value gains                                                                                    4             1                11
Cash flow hedges                                                                                     (43)            44                42
Share of other comprehensive income and reserves of equity-accounted investments                      438           230               633
Tax on other comprehensive income                                                                       7           (4)               (3)
Total comprehensive income for the period                                                             832           410             1 375
Attributable to:
Equity holders of the group                                                                           896           424             1 406
Non-controlling interest                                                                             (64)          (14)              (31)
                                                                                                      832           410             1 375
Notes
(1)  These components of other comprehensive income may subsequently be reclassified to profit or loss, except for gains of US$141m (2015: US$58m and
     31 March 2016: US$387m) included in the "Share of other comprehensive income and reserves of equity-accounted investments" as well as losses of US$nil
     (2015: US$1m and 31 March 2016: US$nil) included in "Net fair-value gains" relating to remeasurements on the group's post-employment benefit plans.

(2)  The movement on the foreign currency translation reserve relates primarily to the effects of foreign exchange rate fluctuations related to the 
     translation of the group's investments in its foreign operations.

Condensed consolidated statement of financial position

                                                                                                           30 September          31 March
                                                                                                       Reviewed      Reviewed     Audited
                                                                                                           2016          2015        2016
                                                                                              Notes       US$'m         US$'m       US$'m
Assets                                    
Non-current assets                                                                                       15 080        10 458      13 486
Property, plant and equipment                                                                             1 861         1 268       1 443
Goodwill                                                                                          8       3 041         1 579       2 818
Other intangible assets                                                                                   1 104           398       1 190
Investments in associates                                                                         9       8 670         6 755       7 625
Investments in joint ventures                                                                     9         200           293         218
Other investments and loans                                                                       9          62            67          57
Other receivables                                                                                            23             -          20
Derivative financial instruments                                                                 13           -             9           -
Deferred taxation                                                                                           119            89         115
Current assets                                                                                            3 144         2 787       3 237
Inventory                                                                                                   222           223         194
Programme and film rights                                                                                   400           321         160
Trade receivables                                                                                           465           405         393
Other receivables and loans                                                                                 472           440         491
Derivative financial instruments                                                                 13          14            78          59
Cash and cash equivalents                                                                                 1 545         1 003       1 714
                                                                                                          3 118         2 470       3 011
Assets classified as held for sale                                                               11          26           317         226
Total assets                                                                                             18 224        13 245      16 723
Equity and liabilities                                    
Share capital and reserves                                                                               11 103         6 952      10 254
Share capital and premium                                                                                 4 939         2 733       4 965
Other reserves                                                                                            (320)       (1 529)       (821)
Retained earnings                                                                                         6 484         5 748       6 110
Non-controlling shareholders' interest                                                                      348           225         400
Total equity                                                                                             11 451         7 177      10 654
Non-current liabilities                                                                                   4 486         3 920       4 023
Capitalised finance leases                                                                                1 167           591         771
Liabilities - interest-bearing                                                                            3 005         3 190       2 922
            - non-interest-bearing                                                                           13            18           8
Other non-current liabilities                                                                                 -             -           3
Post-employment medical liability                                                                            14            14          13
Derivative financial instruments                                                                 13          23            11          20
Deferred taxation                                                                                           264            96         286
Current liabilities                                                                                       2 287         2 148       2 046
Current portion of long-term debt                                                                           222           208         227
Trade payables                                                                                              599           528         437
Accrued expenses and other current liabilities                                                            1 341         1 243       1 253
Derivative financial instruments                                                                 13          86            50          31
Bank overdrafts and call loans                                                                               34            17           1
                                                                                                          2 282         2 046       1 949
Liabilities classified as held for sale                                                          11           5           102          97
Total equity and liabilities                                                                             18 224        13 245      16 723
Net asset value per N ordinary share (US cents)                                                           2 574         1 685       2 379

Condensed consolidated statement of changes in equity
                                 
                                                                                                        Six months ended       Year ended
                                                                                                          30 September           31 March
                                                                                                          2016          2015         2016
                                                                                                      Reviewed      Reviewed      Audited
                                                                                                         US$'m         US$'m        US$'m
Balance at the beginning of the period                                                                  10 654         6 903        6 903
Changes in share capital and premium                                 
Movement in treasury shares                                                                               (77)          (57)         (68)
Share capital and premium issued                                                                            51            57        2 300
Changes in reserves                                 
Total comprehensive income for the period                                                                  896           424        1 406
Movement in share-based compensation reserve                                                                66            29          120
Movement in existing control business combination reserve                                                   61          (10)           9
Direct retained earnings and other reserve movements                                                        10             -            -
Dividends paid to Naspers shareholders                                                                   (158)         (139)        (161)
Changes in non-controlling interest                                 
Total comprehensive income for the period                                                                 (64)          (14)         (31)
Dividends paid to non-controlling shareholders                                                            (96)         (110)        (125)
Movement in non-controlling interest in reserves                                                           108            94          301
Balance at the end of the period                                                                        11 451         7 177       10 654
Comprising:                                 
Share capital and premium                                                                                4 939         2 733        4 965
Retained earnings                                                                                        6 484         5 748        6 110
Share-based compensation reserve                                                                         1 438           811        1 231
Existing control business combination reserve                                                            (123)         (203)        (184)
Hedging reserve                                                                                              6            35           35
Valuation reserve                                                                                          819           593          573
Foreign currency translation reserve                                                                   (2 460)       (2 765)      (2 476)
Non-controlling interest                                                                                   348           225          400
Total                                                                                                   11 451         7 177       10 654

Condensed consolidated statement of cash flows

                                                                                                       Six months ended        Year ended
                                                                                                         30 September            31 March
                                                                                                         2016          2015          2016
                                                                                                     Reviewed      Reviewed       Audited
                                                                                                        US$'m         US$'m         US$'m
Cash flows from operating activities                       
Cash generated from operating activities                                                                   92           269           454
Interest income received                                                                                   27            23            46
Dividends received from investments and equity-accounted companies                                        193           147           146
Interest costs paid                                                                                     (126)         (106)         (246)
Taxation paid                                                                                           (157)         (152)         (322)
Net cash generated from operating activities                                                               29           181            78
Cash flows from investing activities                       
Acquisitions and disposals of tangible and intangible assets                                             (78)         (102)         (228)
Acquisitions of subsidiaries, associates and joint ventures                                             (127)         (187)       (1 426)
Disposals of subsidiaries, associates and joint ventures                                                  159           238           289
Cash movement in other investments and loans                                                                4          (20)          (19)
Net cash utilised in investing activities                                                                (42)          (71)       (1 384)
Cash flows from financing activities                       
Proceeds from issue of share capital                                                                        -             -         2 470
Proceeds from long- and short-term loans raised                                                           122         1 517         2 000
Repayments of long- and short-term loans                                                                 (24)       (1 499)       (2 270)
Outflow from share-based compensation transactions                                                        (8)           (6)          (13)
Dividends paid by the holding company and its subsidiaries                                              (261)         (249)         (254)
Other movements resulting from financing activities                                                         4             5          (41)
Net cash (utilised in)/generated from financing activities                                              (167)         (232)         1 892
Net movement in cash and cash equivalents                                                               (180)         (122)           586
Foreign exchange translation adjustments                                                                 (19)          (90)          (73)
Cash and cash equivalents at the beginning of the period                                                1 713         1 200         1 200
Cash and cash equivalents classified as held for sale                                                     (3)           (2)             -
Cash and cash equivalents at the end of the period                                                      1 511           986         1 713

Segmental review

                                                                                                          Revenue
                                                                                       Six months ended                        Year ended
                                                                                         30 September                            31 March
                                                                                          2016          2015                         2016
                                                                                      Reviewed      Reviewed            %         Audited
                                                                                         US$'m         US$'m       change           US$'m
Internet                                                                                 4 889         3 763          b30           8 237
- Tencent                                                                                3 426         2 461          b39           5 417
- Mail.ru                                                                                   84            92          (9)             173
- Ecommerce                                                                              1 379         1 210           14           2 647
Video entertainment                                                                      1 645         1 790          (8)           3 413
Media                                                                                      284           325         (13)             608
Corporate services                                                                           1             -          100               1
Intersegmental                                                                            (31)          (17)         (82)            (35)
Economic interest                                                                        6 788         5 861           16          12 224
Less: Equity-accounted investments                                                     (3 830)       (2 878)         (33)         (6 294)
Consolidated                                                                             2 958         2 983          (1)           5 930
                                                                                                          EBITDA(1)
                                                                                       Six months ended                        Year ended
                                                                                         30 September                            31 March
                                                                                          2016          2015                         2016
                                                                                      Reviewed      Reviewed              %       Audited
                                                                                         US$'m         US$'m         change         US$'m
Internet                                                                                 1 365           916             49         1 845
- Tencent                                                                                1 593         1 150             39         2 415
- Mail.ru                                                                                   39            42            (7)            78
- Ecommerce                                                                              (267)         (276)              3         (648)
Video entertainment                                                                        331           492           (33)           799
Media                                                                                       21            28           (25)            52
Corporate services                                                                         (6)           (6)              -          (12)
Economic interest                                                                        1 711         1 430             20         2 684
Less: Equity-accounted investments                                                     (1 535)       (1 080)           (42)       (2 261)
Consolidated                                                                               176           350           (50)           423
                                                                                                        Trading profit
                                                                                       Six months ended                        Year ended
                                                                                         30 September                            31 March
                                                                                         2016         2015                           2016
                                                                                     Reviewed      Reviewed              %        Audited
                                                                                        US$'m         US$'m         change          US$'m
Internet                                                                                1 241           805             54          1 619
- Tencent                                                                               1 501         1 065             41          2 246
- Mail.ru                                                                                  32            36           (11)             66
- Ecommerce                                                                             (292)         (296)              1          (693)
Video entertainment                                                                       226           399           (43)            610
Media                                                                                      12            16           (25)             29
Corporate services                                                                        (6)           (6)              -           (12)
Economic interest                                                                       1 473         1 214             21          2 246
Less: Equity-accounted investments                                                    (1 428)         (982)           (45)        (2 067)
Consolidated                                                                               45           232           (81)            179

Note
(1) EBITDA refers to earnings before interest, taxation, depreciation and amortisation.

Reconciliation of trading profit to operating (loss)/profit

                                                                                                   Six months ended            Year ended
                                                                                                     30 September                31 March
                                                                                                       2016           2015           2016
                                                                                                   Reviewed       Reviewed        Audited
                                                                                                      US$'m          US$'m          US$'m
Trading profit                                                                                           45            232            179
Finance cost on transponder leases and merchant finance                                                  20             16             33
Amortisation of other intangible assets                                                                (46)           (29)           (68)
Other gains/(losses) - net                                                                             (27)          (139)          (292)
Retention option expense                                                                                (1)            (2)            (2)
Share-based incentives settled in treasury shares                                                      (21)           (11)           (27)
Operating (loss)/profit                                                                                (30)             67          (177)

Note: For a reconciliation of operating (loss)/profit to profit before taxation, refer to the condensed consolidated income statement.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM REPORT

1.  General information
    Naspers Limited (Naspers) is a global internet and entertainment group and one of the largest technology investors in the world. Founded
    in 1915, we now operate in more than 130 countries and markets with long-term growth potential. Naspers builds leading companies that
    empower people and enrich communities. It runs some of the world's leading platforms in internet, video entertainment and media.

2.  Basis of presentation and accounting policies
    The condensed consolidated interim report for the six months ended 30 September 2016 is prepared in accordance with International
    Financial Reporting Standards (IFRS), IAS 34: Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting
    Practices Committee, and Financial Pronouncements as issued by the Financial Reporting Standards Council as well as the requirements of
    the Companies Act of South Africa and the JSE Limited Listings Requirements.
    
    The condensed consolidated interim report does not include all the disclosures required for complete annual financial statements prepared
    in accordance with IFRS as issued by the International Accounting Standards Board (IASB). The accounting policies used in preparing the
    condensed consolidated interim report are consistent with those applied in the previous annual financial statements.
    
    The group has adopted all new and amended accounting pronouncements issued by the IASB that are effective for financial years
    commencing 1 April 2016. None of the new or amended accounting pronouncements that are effective for the financial year commencing
    1 April 2016 are expected to have a material impact on the group.
    
    Trading profit excludes amortisation of intangible assets (other than software), equity-settled share-based payment expenses relating to
    transactions to be settled through the issuance of treasury shares, retention option expenses and other gains/losses, but includes the
    finance cost on transponder leases.
    
    Core headline earnings exclude once-off and non-operating items. We believe it is a useful measure of the group's sustainable operating
    performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled measures reported 
    by other companies.

3.  Review by the independent auditor
    This condensed consolidated interim report has been reviewed by the company's auditor, PricewaterhouseCoopers Inc., whose unqualified
    report appears at the end of the condensed consolidated interim report.

4.  Calculation of headline and core headline earnings
                                                                                                   Six months ended            Year ended
                                                                                                     30 September                31 March
                                                                                                       2016          2015            2016
                                                                                                   Reviewed      Reviewed         Audited
                                                                                                      US$'m         US$'m           US$'m
    Net profit attributable to shareholders                                                             554           610             994
    Adjusted for:  
    - insurance proceeds                                                                                  -           (1)             (1)
    - impairment of property, plant and equipment and other assets                                        2             -              43
    - impairment of goodwill and other intangible assets                                                 24           140             155
    - (profit)/loss on sale of assets                                                                   (1)             -               3
    - loss on remeasurement of disposal groups classified as held for sale 
      to fair value less costs of disposal                                                                2             -              88
    - gains on acquisitions and disposals of investments                                               (40)          (88)           (110)
    - remeasurement of previously held interest                                                           -          (24)           (348)
    - dilution losses/(gains) on equity-accounted investments                                            71         (129)           (104)
    - remeasurements included in equity-accounted earnings                                             (57)          (45)           (125)
    - impairment of equity-accounted investments                                                          -             1              55
    Total tax effects of adjustments                                                                    (1)             5              54
    Total adjustment for non-controlling interest                                                         1           (1)             (3)
    Headline earnings                                                                                   555           468             701
    Adjusted for: 
    - equity-settled share-based payment expenses                                                       124            88             218
    - recognition of deferred tax assets                                                                  -           (1)             (1)
    - amortisation of other intangible assets                                                           177            98             230
    - fair-value adjustments and currency translation differences                                        56            36              90
    - retention option expense                                                                            1             2               2
    - business combination losses                                                                         1             5               6
    Core headline earnings                                                                              914           696           1 246

    The diluted earnings, headline earnings and core headline earnings per share figures presented on the face of the condensed consolidated
    income statement include a decrease of US$11m (2015: US$8m and 31 March 2016: US$20m) relating to the future dilutive impact of
    potential ordinary shares issued by equity-accounted investees.

5.  Interest received/(paid)
                                                                                                     Six months ended          Year ended
                                                                                                       30 September              31 March
                                                                                                         2016          2015          2016
                                                                                                     Reviewed      Reviewed       Audited
                                                                                                        US$'m         US$'m         US$'m
    Interest received                                                                                      29            21            40
    - loans and bank accounts                                                                              26            19            37
    - other                                                                                                 3             2             3
    Interest paid                                                                                       (136)         (137)         (292)
    - loans and overdrafts                                                                              (100)         (109)         (207)
    - transponder leases                                                                                 (20)          (16)          (33)
    - other                                                                                              (16)          (12)          (52)
    Other finance income/(cost) - net                                                                    (58)          (40)         (100)
    - net foreign exchange differences and fair-value adjustments on derivatives                         (58)          (41)         (102)
    - preference dividends received                                                                         -             1             2

6.  Profit before taxation
    In addition to the items already detailed, profit before taxation has been determined after taking into account, inter alia, the following:

                                                                                                      Six months ended         Year ended
                                                                                                        30 September             31 March
                                                                                                         2016          2015          2016
                                                                                                     Reviewed      Reviewed       Audited
                                                                                                        US$'m         US$'m         US$'m
    Depreciation of property, plant and equipment                                                          99            93           186
    Amortisation                                                                                           59            40            94
    - other intangible assets                                                                              46            29            67
    - software                                                                                             13            11            27
    Net realisable value adjustments on inventory, net of reversals(1)                                     15             1            78
    Other gains/(losses) - net                                                                           (27)         (139)         (292)
    - profit/(loss) on sale of assets                                                                       1             -           (3)
    - impairment of goodwill and other intangible assets                                                 (24)         (140)         (155)
    - impairment of property, plant and equipment and other assets                                        (2)             -          (43)
    - dividends received on investments                                                                     1             -             -
    - remeasurement of disposal groups classified as held for sale 
      to fair value less costs of disposal                                                                (2)             -          (88)
    - insurance proceeds                                                                                    -             1             1
    - fair-value adjustments on financial instruments                                                     (1)             -           (4)
    Gains on acquisitions and disposals                                                                    39           108           452
    - gains on disposal of investments                                                                     40            88           110
    - remeasurement of contingent consideration                                                             1           (1)             2
    - acquisition-related costs                                                                           (2)           (3)           (8)
    - remeasurement of previously held interest                                                             -            24           348
  
    Note
    (1) Net realisable value writedowns relate primarily to set-top box subsidies in the video-entertainment segment.

7.  Equity-accounted results
    The group's equity-accounted investments contributed to the condensed consolidated interim financial results as follows:

                                                                                                      Six months ended         Year ended
                                                                                                        30 September             31 March
                                                                                                         2016          2015          2016
                                                                                                     Reviewed      Reviewed       Audited
                                                                                                        US$'m         US$'m         US$'m
    Share of equity-accounted results                                                                     912           635         1 289
    - sale of assets                                                                                        8             2             -
    - disposal of investments                                                                           (206)         (118)         (251)
    - impairment of investments                                                                           145            76           180
    Contribution to headline earnings                                                                     859           595         1 218
    - amortisation of other intangible assets                                                             150            78           174
    - equity-settled share-based payment expenses                                                         106            77           191
    - fair-value adjustments and currency translation differences                                         (3)             4             6
    Contribution to core headline earnings                                                              1 112           754         1 589
    Tencent                                                                                             1 183           854         1 797
    Mail.ru                                                                                                27            23            45
    Other                                                                                                (98)         (123)         (253)

8.  Goodwill
    Goodwill is subject to an annual impairment assessment. Movements in the group's goodwill for the period are detailed below:

                                                                                                      Six months ended         Year ended
                                                                                                        30 September             31 March
                                                                                                         2016          2015          2016
                                                                                                     Reviewed      Reviewed       Audited
                                                                                                        US$'m         US$'m         US$'m
    Goodwill
    - cost                                                                                              3 175         2 170         2 170
    - accumulated impairment                                                                            (357)         (279)         (279)
    Opening balance                                                                                     2 818         1 891         1 891
    - foreign currency translation effects                                                                 95          (82)          (26)
    - acquisitions of subsidiaries and businesses                                                         138            65         1 260
    - disposals of subsidiaries and businesses                                                              -             -           (7)
    - transferred to assets classified as held for sale                                                   (7)         (155)         (155)
    - impairment                                                                                          (3)         (140)         (145)
    Closing balance                                                                                     3 041         1 579         2 818
    - cost                                                                                              3 416         1 974         3 175
    - accumulated impairment                                                                            (375)         (395)         (357)

9.  Investments and loans
    The following relates to the group's investments and loans as at the end of the reporting period:
                                                                                                       Six months ended        Year ended
                                                                                                         30 September            31 March
                                                                                                          2016         2015          2016
                                                                                                      Reviewed     Reviewed       Audited
                                                                                                         US$'m        US$'m         US$'m
    Investments and loans                                                                                8 932        7 115         7 900
    - listed investments                                                                                 7 996        5 915         6 977
    - unlisted investments and loans                                                                       936        1 200           923

10.  Commitments and contingent liabilities
     Commitments relate to amounts for which the group has contracted, but that have not yet been recognised as obligations in the statement
     of financial position.
                                                                                                   Six months ended            Year ended
                                                                                                     30 September                31 March
                                                                                                     2016           2015             2016
                                                                                                 Reviewed       Reviewed          Audited
                                                                                                    US$'m          US$'m            US$'m
      Commitments                                                                                   2 322          3 692            3 254
      - capital expenditure                                                                            24             54               16
      - programme and film rights                                                                   1 856          2 318            2 245
      - network and other service commitments                                                         166            234              176
      - transponder leases                                                                             17            896              573
      - operating lease commitments                                                                   187            128              207
      - set-top box commitments                                                                        72             62               37

      The group operates a number of businesses in jurisdictions where withholding taxes are payable on certain transactions or payments.
      In some circumstances, transactions could potentially lead to withholding taxes being payable. Our current assessment of possible
      withholding tax exposures, including interest and potential penalties, amounts to approximately US$243.8m (2015: US$224.2m and
      31 March 2016: US$216.8m).

11.   Disposal groups classified as held for sale
      The group classified the assets and liabilities of INET BFA Proprietary Limited, a leading provider of financial data feeds and analysis tools,
      as well as the assets and liabilities of various other smaller units, as held for sale during the period ended 30 September 2016.
      
      During the current reporting period, the group concluded the disposal of Heureka and Netretail, following the receipt of regulatory
      approval during May and July 2016 respectively. These businesses were classified as held for sale as at 31 March 2016. Refer to note 12 for
      further details.

      Significant classes of assets and liabilities, classified as held for sale as at 30 September 2016, are detailed in the table below:

                                                                                                    Six months ended           Year ended
                                                                                                      30 September               31 March
                                                                                                       2016         2015             2016
                                                                                                   Reviewed     Reviewed          Audited
                                                                                                      US$'m        US$'m            US$'m
      Assets                                                                                             26          317              226
      Property, plant and equipment                                                                       6           23               28
      Goodwill and other intangible assets                                                                7          210              124
      Investment in joint venture                                                                         -            -                4
      Deferred taxation assets                                                                            3            2                1
      Inventory                                                                                           2           44               38
      Trade and other receivables                                                                         5           24               19
      Cash and cash equivalents                                                                           3           14               12
      Liabilities                                                                                         5          102               97
      Deferred taxation liabilities                                                                       1           10                9
      Long-term liabilities                                                                               -           11                2
      Trade payables                                                                                      1           46               39
      Accrued expenses and other current liabilities                                                      3           23               35
      Bank overdraft                                                                                      -           12               12

      The group recognised a loss of US$1.6m (2015: US$nil and 31 March 2016: US$87.7m) on remeasuring the net assets of businesses
      classified as held for sale to their fair value less costs of disposal during the period. The fair value of the businesses was determined based
      on third-party sales prices. This represents a level 3 fair-value measurement.

12.   Business combinations, other acquisitions and disposals
      As part of its strategy to consolidate the growing US online classifieds market, the US operations of Wallapop S.L. (Wallapop) were absorbed
      into the group's letgo business during July 2016. As consideration for the contribution of Wallapop's business and cash of US$45m, Wallapop
      was issued with a 45% interest in a newly formed entity, with the group holding the remaining 55% interest. The transaction was accounted
      for as a business combination. The total deemed purchase consideration amounted to US$126m, representing the fair value of the equity
      interest issued to Wallapop. Given the early-stage nature of the business model, the transaction gave rise to the recognition of goodwill of
      US$126m. A non-controlling interest of US$45m was recognised following the business combination.

      Various acquisitions were made within the Movile group during the reporting period. Most notably the acquisition by iFood of a controlling
      interest in Brazilian food-ordering business Hellofood Brazil and the acquisition by LBS Global Holdings of controlling interests in Optilogistics
      S.A.S., a major French specialist in transportation issues and logistics and Systems Teamwork S.R.L., a provider of software solutions and
      consulting in supply chain management. The aggregate purchase consideration in these business combinations amounted to US$8m. The purchase price 
      allocation: intangible assets US$1m, trade and other payables US$1m and with resulting goodwill of US$8m.

      The main factor contributing to the goodwill recognised in these acquisitions is the acquiree's market presence. The goodwill that arose is
      not expected to be deductible for income tax purposes. Total acquisition-related costs of US$2m were recorded in "Gains on acquisitions
      and disposals" in the income statement regarding the above acquisitions.

      Had the revenue and net results of the businesses acquired been included from 1 April 2016, it would not have had a significant effect on
      the group's consolidated revenue or net results.

      The following relates to the group's investments in its equity-accounted investees:

      In May 2016 the group, through Naspers Ventures, announced its first investment targeting the education technology market by investing
      US$13m (23.6% fully diluted interest) in Brainly, a social learning network. Over 60m students in 35 countries interact with Brainly every
      month. In line with this strategy, the group also invested US$60m (8.9% fully diluted interest) in Udemy, an online education marketplace
      with over 7m students enrolled, and US$22m (19.2% fully diluted interest) in Codecademy, a leading global platform focused on online
      coding education, both during June 2016. The group accounts for these interests as investments in associates.

      In July 2016 the group acquired a 49% interest in El Cocinero a Cuerda, S.R.L., the owner and operator of online food-ordering
      platforms including Just Eat, Do Eat, and SinDelantal in Latin America for US$15m. The group accounts for its interest as an investment in
      a joint venture.

      The following relates to significant disposals by the group during the reporting period:

      In May 2016 the group disposed of its Czech online comparison-shopping platform Heureka for a cash consideration of US$67m, following
      the receipt of regulatory approval. A gain on disposal of US$61m has been recognised in "Gains on acquisitions and disposals" in the
      income statement following the transaction.

      During July 2016 the group disposed of its Czech online retail and ecommerce platform Netretail for a cash consideration of US$102m.
      A loss on disposal of US$28m has been recognised in "Gains on acquisitions and disposals" in the income statement following the transaction.

13.  Financial instruments
     The group's activities expose it to a variety of financial risks such as market risk (including currency risk, fair-value interest rate risk, cash
     flow interest rate risk and price risk), credit risk and liquidity risk.

     The condensed consolidated interim report does not include all financial risk management information and disclosures required in
     the annual financial statements and should be read in conjunction with the group's annual financial statements as at 31 March 2016.
     There have been no material changes in the group's credit, liquidity or market risks or in key inputs used in measuring fair value since
     31 March 2016.

     The fair values of the group's financial instruments that are measured at fair value at each reporting period are categorised as follows:

                                                                                                   Fair-value measurements at
                                                                                                    30 September 2016 using:
                                                                                         Quoted prices
                                                                                             in active
                                                                                           markets for        Significant
                                                                                             identical              other     Significant
                                                                                                assets         observable    unobservable
                                                                                        or liabilities             inputs          inputs
                                                                                             (level 1)          (level 2)       (level 3)
                                                                                                 US$'m              US$'m           US$'m
     Assets
     Available-for-sale investments                                                                 11                  1               -
     Foreign exchange contracts                                                                      -                  4               -
     Currency devaluation features                                                                   -                  -              10
     Liabilities 
     Foreign exchange contracts                                                                      -                 79               -
     Shareholders' liabilities                                                                       -                  -              14
     Earnout obligations                                                                             -                  -              14
     Interest rate swaps                                                                             -                 16               -

                                                                                                  Fair-value measurements at
                                                                                                     31 March 2016 using:
                                                                                        Quoted prices
                                                                                            in active
                                                                                          markets for          Significant
                                                                                            identical                other    Significant
                                                                                               assets           observable   unobservable
                                                                                       or liabilities               inputs         inputs
                                                                                            (level 1)            (level 2)      (level 3)
                                                                                                US$'m                US$'m          US$'m
     Assets
     Available-for-sale investments                                                                12                    -              -
     Foreign exchange contracts                                                                     -                   48              -
     Currency devaluation features                                                                  -                    -             11
     Liabilities
     Foreign exchange contracts                                                                     -                   17              -
     Shareholders' liabilities                                                                      -                    -             13
     Earnout obligations                                                                            -                    -             22
     Interest rate swaps                                                                            -                   21              -

     A reconciliation of the movements in the carrying values of level 3 fair-value measurements is provided below:

                                                                                            30 September 2016
                                                                           Currency             Share-
                                                                        devaluation           holders'            Earnout
                                                                           features        liabilities        obligations           Total
                                                                              US$'m              US$'m              US$'m           US$'m
     Opening balance                                                             11               (13)               (22)            (24)
     Total gains/(losses) recognised in the income statement                      1                (1)                  1               1
     Total gains recognised as adjustments to the cost of   
     programme and film rights                                                    6                  -                  -               6
     Reclassifications                                                          (8)                  -                  -             (8)
     Settlements                                                                  -                  -                  8               8
     Foreign currency translation effects                                         -                  -                (1)             (1)
     Closing balance                                                             10               (14)               (14)            (18)

     The group has assessed that, if one or more of the inputs used in measuring the fair value of shareholders' liabilities, earnout obligations
     and currency devaluation features were changed to a reasonably possible alternative assumption, it would not have a significant impact on
     these fair-value measurements.  
                                                                                              31 March 2016
                                                                           Currency             Share-
                                                                        devaluation           holders'           Earnout
                                                                           features        liabilities       obligations            Total
                                                                              US$'m              US$'m             US$'m            US$'m
     Opening balance                                                              -               (29)              (39)             (68)
     Total gains/(losses) recognised in the income statement                      8                (4)                 3                7
     Total gains recognised as adjustments to the cost of programme   
     and film rights                                                              3                  -                 -                3
     Additional obligations raised                                                -               (27)               (1)             (28)
     Cancellations/Reclassifications                                              -                  4                 -                4
     Settlements                                                                  -                 43                11               54
     Foreign currency translation effects                                         -                  -                 4                4
     Closing balance                                                             11               (13)              (22)             (24)
     
     The group discloses the fair values of the following financial instruments as their carrying values are not a reasonable approximation of
     their fair values:
                                                                                                                    30 September 2016
                                                                                                                 Carrying            Fair
                                                                                                                    value           value
     Financial liabilities                                                                                          US$'m           US$'m
     Capitalised finance leases                                                                                     1 231           1 274
     Publicly traded bonds                                                                                          2 900           3 119
                                                                                                                        31 March 2016
                                                                                                                 Carrying            Fair
                                                                                                                    value           value
     Financial liabilities                                                                                          US$'m           US$'m
     Capitalised finance leases                                                                                       836             865
     Publicly traded bonds                                                                                          2 900           3 035
      
14.  Events after the reporting period
     In October 2016 the group acquired a 100% interest in Citrus Pay, a leading Indian payments technology player, for US$130m. Citrus Pay
     will form part of the Indian operations of PayU, the group's global online payment service provider.

     During October 2016 the group announced the sale of its interests in Allegro.pl and Ceneo.pl, the leading online marketplace and price
     comparison businesses in Poland, for US$3.25bn. The transaction is subject to regulatory approval with closing expected in early 2017.

     A merger of the group's Indian travel business with that of MakeMyTrip Limited, another leader in the Indian travel sector, was announced in
     October 2016. Following the merger, the group will hold a 40% stake in MakeMyTrip. The transaction is subject to approval by MakeMyTrip
     shareholders and regulatory authorities.

15.  Pro forma financial information
     The group has presented certain revenue and trading profit metrics in local currency, excluding the effects of changes in the composition
     of the group (the pro forma financial information) in the tables below. The pro forma financial information is the responsibility of the board
     of directors (the board) of Naspers Limited (Naspers) and is presented for illustrative purposes. Information presented on a pro forma basis
     has been extracted from the group's management accounts, the quality of which the board is satisfied with.

     Shareholders are advised that, due to the nature of the pro forma financial information and the fact that it has been extracted from
     the group's management accounts, it may not fairly present the group's financial position, changes in equity, results of operations or
     cash flows.

     The pro forma financial information has been prepared to illustrate the impact of changes in foreign exchange rates and changes in the
     composition of the group on its results for the period ended 30 September 2016. The following methodology was applied in calculating the
     pro forma financial information:

     1. Foreign exchange/constant currency adjustments have been calculated by adjusting the current period's results to the prior
        period's average foreign exchange rates, determined as the average of the monthly exchange rates for that period. The local currency
        financial information quoted, is calculated as the constant currency results, arrived at using the methodology outlined above,
        compared to the prior period's actual IFRS results. The relevant average exchange rates (relative to the US dollar) used for the most
        significant currencies, were: South African rand (2016: 0.0690; 2015: 0.0789); Polish zloty (2016: 0.2572; 2015: 0.2672); Russian rouble
        (2016: 0.0154; 2015: 0.017); Chinese yuan renminbi (2016: 0.1512; 2015: 0.1598); Indian rupee (2016: 0.0149; 2015: 0.0155); Brazilian
        real (2016: 0.3000; 2015: 0.2958); and Nigerian naira (2016: 0.0037; 2015: 0.0050).

     2. Adjustments made for changes in the composition of the group relate to acquisitions and disposals of subsidiaries and equity-accounted
        investment as well as to changes in the group's shareholding in its equity-accounted investments. The following significant changes in
        the composition of the group have been adjusted for in arriving at the pro forma financial information:

                                                                                                                     Reportable     Acquisition/
     Transaction                                                      Basis of accounting                            segment        Disposal
     Dilution of the group's interest in Tencent                      Associate                                      Internet       Disposal
     Disposal by Mail.ru of a controlling interest in Headhunter      Associate                                      Internet       Disposal
     Dilutions of the group's interest in Flipkart and Souq           Associate and joint venture respectively       Ecommerce      Disposal
     Acquisition of the group's interest in Avenida                   Associate                                      Ecommerce      Acquisition
     Acquisition of the group's interest in Avito                     Subsidiary                                     Ecommerce      Acquisition
     Acquisition of the group's interest in letgo                     Subsidiary                                     Ecommerce      Acquisition
     Disposal of Netretail                                            Subsidiary                                     Ecommerce      Disposal
     Disposal of Heureka                                              Subsidiary                                     Ecommerce      Disposal
     Disposal of Korbitec                                             Subsidiary                                     Ecommerce      Disposal
     Disposal of Ricardo                                              Subsidiary                                     Ecommerce      Disposal

     The net adjustment made for all acquisitions and disposals that took place during the period ended 30 September 2016 amounted to a
     negative adjustment of US$54m on revenue and a negative adjustment of US$53m on trading profit.

     An assurance report issued in respect of the pro forma financial information, by the group's external auditor, is available at the registered
     office of the company.


     The adjustments to the amounts, reported in terms of IFRS, that have been made in arriving at the pro forma financial information are
     presented in the table below:
                                                                                               Period ended
                                                                                               30 September
                                         2015               2016             2016                2016           2016           2016        2016        2016
                                            A                  B                C                   D              E           F(2)        G(3)        H(4)
                                                           Group            Group
                                                     composition      composition             Foreign          Local                      Local
                                                        disposal      acquisition            currency       currency                   currency
                                         IFRS         adjustment       adjustment          adjustment         growth           IFRS      growth        IFRS
                                        US$'m              US$'m            US$'m               US$'m          US$'m          US$'m    % change    % change
     Revenue(1)
     Internet                           3 763              (130)               78               (258)          1 436          4 889          40          30
     - Tencent                          2 461                (8)                -               (196)          1 169          3 426          48          39
     - Mail.ru                             92                (5)                -                (12)              9             84          10         (9)
     - Ecommerce                        1 210              (117)               78                (50)            258          1 379          24          14
     Video entertainment                1 790                  -                -               (255)            110          1 645           6         (8)
     Media                                325                (2)                -                (36)            (3)            284         (1)        (13)
     Corporate services                     -                  -                -                   -              1              1         100         100
     Intersegmental                      (17)                  -                -                   1           (15)           (31)
     Economic interest                  5 861              (132)               78               (548)          1 529          6 788          27          16
     Trading profit(1)
     Internet                             805                (3)             (50)                (82)            571          1 241          71          54
     - Tencent                          1 065                (3)                -                (87)            526          1 501          50          41
     - Mail.ru                             36                (2)                -                 (5)              3             32           9        (11)
     - Ecommerce                        (296)                  2             (50)                  10             42          (292)          14           1
     Video entertainment                  399                  -                -               (116)           (57)            226        (14)        (43)
     Media                                 16                  -                -                   1            (5)             12        (31)        (25)
     Corporate services                   (6)                  -                -                   1            (1)            (6)        (17)           -
     Economic interest                  1 214                (3)             (50)               (196)            508          1 473          42          21
     Other metrics reported  
     Development spend
     - economic interest                  404                 (7)               -                (11)            110            496          27          23
     - consolidated                       280                 (4)               -                 (6)            117            387          42          38
     Consolidated revenue               2 983                (94)              74               (333)            328          2 958          11         (1)
     Etail revenue                        732                (73)               4                (18)            108            753          16           3
     Travel revenue                        40                   -               -                 (3)             30             67          75          68
     Classifieds revenue                   91                (12)              73                (16)             60            196          76         115
     Payments revenue                      68                   -               -                 (5)             20             83          29          22

     Core headline earnings, calculated on a constant currency basis, amounted to US$1 076bn.

     Development spend is not an IFRS measure and has therefore been excluded from the assurance report issued by the group's external auditor.

     Notes
     (1) Figures presented on an economic interest basis. (2) A + B + C + D + E.  (3) [E/(A + B)] x 100.  (4) [(F/A) - 1] x 100.

INDEPENDENT AUDITOR'S REVIEW REPORT ON INTERIM FINANCIAL STATEMENTS

To the shareholders of Naspers Limited

We have reviewed the condensed consolidated interim financial statements of Naspers Limited in the accompanying interim report, which 
comprise the condensed consolidated statement of financial position as at 30 September 2016 and the related consolidated income 
statement and condensed consolidated statements of comprehensive income, changes in equity and cash flows for the six-months then ended, 
and selected explanatory notes.

Directors' responsibility for the interim financial statements

The directors are responsible for the preparation and presentation of these interim financial statements in accordance with the International 
Financial Reporting Standard, (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices 
Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the Companies Act of South Africa, 
and for such internal control as the directors determine is necessary to enable the preparation of interim financial statements that are free from 
material misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express a conclusion on these interim financial statements. We conducted our review in accordance with International Standard 
on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. ISRE 2410 requires us to conclude 
whether anything has come to our attention that causes us to believe that the interim financial statements are not prepared in all material respects in 
accordance with the applicable financial reporting framework. This standard also requires us to comply with relevant ethical requirements.

A review of interim financial statements in accordance with ISRE 2410 is a limited assurance engagement. We perform procedures, primarily consisting 
of making inquiries of management and others within the entity, as appropriate, and applying analytical procedures, and evaluate the evidence obtained.

The procedures in a review are substantially less than and differ in nature from those performed in an audit conducted in accordance with International 
Standards on Auditing. Accordingly, we do not express an audit opinion on these interim financial statements.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial 
statements of Naspers Limited for the six months ended 30 September 2016 are not prepared, in all material respects, in accordance with the 
International Financial Reporting Standard, (IAS) 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting 
Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the 
Companies Act of South Africa.

Other matter
We have not reviewed future financial performance and expectations expressed by the directors included in the commentary in the accompanying 
interim financial statements and accordingly do not express an opinion thereon.

PricewaterhouseCoopers Inc.
Director: Brendan Deegan
Registered Auditor
Cape Town
25 November 2016

PricewaterhouseCoopers Inc., 5 Silo Square, V&A Waterfront, Cape Town 8002, P O Box 2799, Cape Town 8000
T: +27 (21) 529 2000, F: +27 (21) 529 3300, www.pwc.co.za

Chief Executive Officer: T D Shango
Management Committee: S N Madikane, J S Masondo, P J Mothibe, C Richardson, F Tonelli, C Volschenk
Western Cape region - Partner in charge: D J Fölscher
The Company's principal place of business is at 2 Eglin Road, Sunninghill where a list of directors' names is available for inspection.
Reg. no. 1998/012055/21, VAT reg.no. 4950174682

ADMINISTRATION AND CORPORATE INFORMATION

Directors
J P Bekker (chair), B van Dijk (chief executive), C L Enenstein, D G Eriksson, G Liu, R C C Jafta, F L N Letele, D Meyer,
R Oliveira de Lima, S J Z Pacak, T M F Phaswana, V Sgourdos, M R Sorour, J D T Stofberg, H J du Toit, B J van der Ross

Company secretary
G Kisbey-Green

Registered office
40 Heerengracht, Cape Town 8001
PO Box 2271
Cape Town 8000
South Africa

Transfer secretaries
Link Market Services South Africa Proprietary Limited
13th Floor
Rennie House
19 Ameshoff Street
Braamfontein 2001
PO Box 4844
Johannesburg 2000
South Africa

Sponsor
Investec Bank Limited

ADR programme
Bank of New York Mellon maintains a GlobalBuyDIRECTSM plan for Naspers Limited. For additional information, please visit Bank of New York
Mellon's website at www.globalbuydirect.com or call Shareholder Relations at 1-888-BNY-ADRS or 1-800-345-1612 or write to: Bank of New
York Mellon, Shareholder Relations Department - GlobalBuyDIRECTSM, Church Street Station, PO Box 11258, New York, NY 10286-1258, USA.

Important information
The report contains forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995. Words such
as "believe", "anticipate", "intend", "seek", "will", "plan", "could", "may", "endeavour" and similar expressions are intended to identify such
forward-looking statements, but are not the exclusive means of identifying such statements. While these forward-looking statements represent
our judgements and future expectations, a number of risks, uncertainties and other important factors could cause actual developments and
results to differ materially from our expectations. These include factors that could adversely affect our businesses and financial performance.
We are not under any obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as
a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward-looking statements
contained herein.

www.naspers.com



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