Condensed Consolidated Interim Financial Statements
OPTION 1Condensed consolidatedinterim financial statementsfor the six months ended 30 September 2020Mumbai, IndiaCape Town, South Africa
ContentsCommentary.1FinancialCondensed consolidated income statement. 11Condensed consolidated statement of comprehensive income. 12Condensed consolidated statement of financial position. 13Condensed consolidated statement of changes in equity. 14Condensed consolidated statement of cash flows. 16Notes to the condensed consolidated interim financial statements. 17Independent auditor’s review report on the condensedconsolidated interim financial statements. 43Other information to the condensed consolidatedinterim financial statements. 44InformationAdministration and corporate information. 52Important information. ibc
CommentarySeptember 2020 marked the first anniversary of thelisting of Prosus on the Euronext Amsterdam stockexchange. This created Europe’s largest consumerinternet company and a new investment opportunityon the global technology stage, improving thegroup’s access to international internet investors.A year on, ownership of Prosus continues to expandand diversify. The group’s recent inclusion inEurope’s leading index, the Euro Stoxx 50, isexpected to attract additional European investorinterest over time.Given the wide geographical span of ouroperations and significant mergers and acquisitions(M&A) activity in ecommerce, reported earnings arematerially impacted by foreign exchangemovements and the effects of acquisitions anddisposals. Where relevant in this report, we haveadjusted for these effects. These adjustments (proforma financial information) are quoted in bracketsafter the equivalent metrics reported underInternational Financial Reporting Standards (IFRS).A reconciliation of pro forma financial informationto the equivalent IFRS metrics is provided elsewherein these condensed consolidated interim financialstatements.FINANCIAL REVIEWThe group delivered good results for the first sixmonths ended 30 September 2020, despiteCovid-19. Group revenue, measured on aneconomic-interest basis, was US 12.7bn, reflectinggrowth of 28% (32%), a meaningful acceleration of16pp (12pp) over the same period last year.Ecommerce revenues grew 37% (51%) year on year.Tencent grew revenues by a healthy 27% (28%).Group trading profit grew 39% (43%) to US 2.7bn.Tencent’s contribution to the group’s trading profitimproved 31% (32%).Core headline earnings were US 2.2bn – up 28%(29%), driven by improved profitability from ourEcommerce units and the growing contribution fromTencent.We ended the period with a strong and liquidbalance sheet. We had a net cash position ofUS 4.3bn, comprising US 9.95bn in cash and cashequivalents (including short-term cash investments),net of US 5.7bn in interest-bearing debt (excludingcapitalised lease liabilities). We hold an undrawnUS 2.5bn revolving credit facility. Overall, werecorded net interest expense of US 49m for theperiod.In July 2020, Prosus successfully raised more thanUS 2bn in debt, comprising its longest-dated USdollar offering to date and its debut euro notesoffering. The offerings drew strong investordemand, resulting in attractive pricing that reducedthe group’s average funding cost while extendingthe blended maturity profile of its outstanding notesto almost 12 years. The proceeds will be used forgeneral corporate purposes, including future M&Aactivity, and to further augment the company’sliquidity. Issuances consisted of 2050 US 1bn4.027% notes, 2028 500m 1.593% notes and 2032 500m 2.031% notes. The group has no debtmaturities due until 2025.Consolidated free cash inflow was US 370m, asignificant improvement on the prior year’s freecash inflow of US 14m. This reflects growth in ourEcommerce unit’s profitability, dividends receivedfrom Tencent of US 458m (2019: US 377m) andimproved working capital management.There were no new or amended accountingpronouncements effective from 1 April 2020 with asignificant impact on the group’s condensedconsolidated interim financial statements.Prosus condensed consolidated interim financial statements for the six months ended 30 September 20201
Commentary (continued)Effective 1 April 2020, the group made a voluntarychange to its accounting policy on the subsequentmeasurement of written put option arrangementswith non-controlling shareholders. Subsequentchanges in the carrying value of put optionliabilities previously recognised in the incomestatement in “Other finance income/(costs) – net”are now recognised through equity. We believe thechange in accounting policy will provide morerelevant information about the effects of underlyingtransactions with non-controlling shareholders.Written put option arrangements are consideredequity transactions because the settlement withnon-controlling shareholders does not result inlosing control over a subsidiary. Furthermore, oninitial recognition of the written put option liability,the group simultaneously recognises the noncontrolling interest because the risks and rewards ofownership are not deemed to have transferred tothe group until the written put option liability issettled.written put option liabilities as these are nowThe group has adopted this change in accountingpolicy retrospectively, however, the impact isinsignificant to the consolidated statement offinancial position as all previous remeasurementsrecognised through the income statement arealready accumulated in equity as at the effectivedate of the change. The previous remeasurementsaccumulated in retained earnings have beenreclassified to the “existing control businesscombination reserve”. Consequently, comparativefigures on the statement of financial position havebeen restated for the reclassification betweenretained earnings and other reserves. The carryingvalue of the written put option liabilities and thetotal equity of the group in the comparative periodsremain unchanged. The condensed consolidatedincome statement and finance income/costs notehave been restated for the remeasurement of2020. In our Payments and Fintech segment, we2recognised directly in equity.The company’s external auditor has not reviewed orreported on forecasts included in these condensedconsolidated interim financial statements.We continue to explore growth opportunities toadvance our strategy, expand our ecosystem andposition the business for sustainable growth. In ourClassifieds segment, we merged letgo andOfferUp, resulting in a business with national reachacross the United States (US), well positioned forgrowth in a highly competitive market. The mergerincluded a new US 120m investment round led byProsus. Furthermore, we injected our Middle EasternClassifieds assets into Emerging Markets PropertyGroup (EMPG) and participated in a US 150mfinancing round that valued the business at overUS 1bn. OLX Brazil has subsequently completed theUS 520m (BRL2.9bn) acquisition of leading realestate vertical Grupo ZAP, announced in Marchmade an additional investment of US 53m inRemitly to expand its footprint in the US, UnitedKingdom (UK) and Canada. We participated inMail.ru’s capital raise to fund growth initiatives,investing US 25m. Finally, we are focused onincreasing our exposure to edtech (educationaltechnology) by investing US 60m in Eruditus, aglobal professional higher-education onlineplatform. In November we announced a totalinvestment of US 500m in Churchill Capital Corp II’splanned acquisition of Software LuxembourgHolding S.A. (Skillsoft) and Global KnowledgeTraining LLC (Global Knowledge). The transactionwill create the world’s leading digital learningcompany with a comprehensive suite of on-demandand live virtual content.Prosus condensed consolidated interim financial statements for the six months ended 30 September 2020
Commentary (continued)The following segmental reviews are preparedon an economic-interest basis (which includeconsolidated subsidiaries and a proportionateconsolidation of associates and joint ventures),unless otherwise stated.SEGMENTAL REVIEWEcommerceEcommerce revenue grew 37% (51%) to US 2.6bn.This was led by the 99% (141%) growth of FoodDelivery, 84% (70%) growth in Etail (online retail)and 83% (49%) growth at Ventures. In addition, theClassifieds, and Payments and Fintech segmentsreported solid results on the back of a sharprecovery to pre-Covid-19 levels in the secondquarter as governments eased lockdownregulations.Aggregated trading losses in our Ecommercesegments reduced by 24% (26%) or US 100m(US 95m) to US 316m, driven by a US 96m(US 91m) improvement in profitability from ourFood Delivery business and profitability from ourEtail business. For the six months ended September,Etail reported a trading profit of US 20m comparedto a US 15m loss in the prior period. Covid-19impacts on trading profit included a 68% (15%)lower Classifieds trading profit, with Payments andFintech flat on the prior year’s period. We haverecorded a good rise in profitability in both thesesegments in recent months.Revenues from our profitable Ecommercebusinesses totalled US 1.6bn, with trading profits ofUS 193m, reflecting growth in local currency of 40%and 27% respectively.ClassifiedsThe performance of the Classifieds segment in thefirst six months of FY21 differed meaningfully byquarter. The first quarter bore the brunt of lockdownregulations in key markets with a commensuratedrop in revenue and profitability, while in thesecond quarter, user activity in most cases,recovered strongly to pre-pandemic levels.Despite the challenges, Classifieds revenue grew7% (-3%) to US 628m for the period, reflecting an18% (19%) decline in revenue in the first quarter,offset by a steady recovery and 30% (11%) growthyear on year in the seasonally stronger secondquarter. For the period, the segment recordedtrading profit of US 12m, representing a 68% (15%)decline. This was primarily due to larger losses fromFrontier Car Group (FCG). We stepped up ourinvestment to a majority position in the second halfof FY20 – we saw the impact of Covid-19 and weinvested further to grow our car vertical capabilities.During the challenging periods of the pandemic,we supported our clients and partners in allgeographies with targeted discounts and extendedpayment terms, especially for small and mediumenterprises. As such, we have not observed anysubstantial drop in client engagement over theperiod. In addition, OLX Group maintained itsworkforce, which enabled the recovery from theearly impacts of Covid-19 as conditions improved.For the half-year, we substantially increased dailybuyers and active users versus the same period lastyear in all major markets, including Russia, Poland,India and Brazil, despite the initial decline in activityon our platforms in the first quarter. Total monthlyactive app users for the group increased 17%. Totalmonthly paying listers for the group increased 5%for the period as we extended support measures.In the transactions business, inspection centres,which were mostly closed in the first quarter, havebeen steadily opening up in all markets aslockdown regulations relaxed. Over 80% of theseProsus condensed consolidated interim financial statements for the six months ended 30 September 20203
Commentary (continued)centres were functional in September, especially inour biggest markets (India, Mexico, the US andIndonesia).In Russia, Avito performed well in a difficultenvironment, recording revenues of RUB13.8bn(US 187m), representing organic growth of 10%.Avito recorded a revenue decline of 14% (4%) inthe first quarter, but resumed its strong growthtrajectory in the second quarter, with healthyrevenue growth of 7% (23%). It recorded tradingprofit of RUB5.1bn (US 69m) for the period, down37% (25%) as the business increased investment inmarketing and new product initiatives, includingpay-and-ship, which have accelerated platformactivity.In Europe, OLX continues to perform well. Polandremains the biggest market, followed by Ukraineand Romania. The region recorded revenues ofUS 157m (Poland: US 92m), with growth of 2% onthe prior period, despite the impacts of Covid-19.Trading profit margin was 44% (Poland: 56%).Pay-and-ship initiatives were rolled out rapidly inthe region. Expanding transactional capabilities willsupport continued strong growth in the region.In the transactions business, OLX continues tointegrate its horizontal platforms with FCG in LatinAmerica (LatAm), India and Indonesia. We aim tocreate an end-to-end value proposition for carsellers, buyers and dealers by providing secure andfrictionless transactions as well as adjacent servicessuch as financing and insurance. At the onset of thepandemic, almost all transaction centres were shut.As restrictions lifted, centres opened quickly and wereturned to more than 80% inspection centrecapacity by the end of September. The businesssold 37 000 cars in the period, with the US,Indonesia, India and Mexico being the topgeographies by volume. The transactions business4reported revenues of US 206m and a trading lossof US 40m as it remains in an investment phase.In May, OLX Group consolidated its Middle Easternoperations of Lebanon, Egypt, Pakistan and theUnited Arab Emirates (UAE) into EMPG for a 39%stake. This transaction makes OLX the largestshareholder in EMPG’s leading property verticalbusinesses and capabilities while deliveringefficiencies in the UAE.OLX Brazil, our 50/50 joint venture with Adevinta,recorded a revenue decline of 5% to BRL84m(US 15m) as this country remains affected byCovid-19. Competition in general classifiedsincreased steadily. We continued to expand ourecosystem and offering with the launch of OLX Pay,a wallet that facilitates payments between buyerand seller, and we have integrated a pay-and-shipoffering in most categories. The business reporteda trading profit of BRL17m (US 3m).In March 2020, OLX Brazil reached an agreementto acquire Grupo ZAP, which includes two leadingBrazilian real estate verticals: ZAP and VivaReal.The transaction was approved by the Braziliancompetition authorities in September 2020 and isexpected to close in the second half of the financialyear. This investment was financed equally by OLXand Adevinta and will provide a market-leadingplatform to expand the OLX Brazil value propositionin the real estate vertical.Food DeliveryOur Food Delivery businesses were impacted bythe pandemic to varying degrees, but the segmentperformed strongly overall. The segment recordedrapid growth in the period, with gross merchandisevalue (GMV) up 51% (69%) and order growth of53%, resulting in revenue growing 99% (141%).Similarly, trading losses improved 34% (33%) fromProsus condensed consolidated interim financial statements for the six months ended 30 September 2020
Commentary (continued)US 283m to US 187m as the business alsobenefited from scale efficiencies.hour. More information on Delivery Hero’s results isavailable at https://ir.deliveryhero.com.iFood grew orders by 111% and GMV by 84%(152%) as more customers spent time at home,eating together. This resulted in strong revenuegrowth of 145% (234%) to US 323m for the period.Trading losses declined by 88% (86%) to US 13m asrevenue growth and lower marketing spendimproved operating leverage. Operationally, iFoodmade significant strategic progress in the first sixmonths. Its first-party (1P) business increased itsshare of orders to over 35% of total order volume inthe period. Restaurant supply on the platformexpanded as restaurants sought new ways togenerate orders and keep their doors open. For thesix months ended September 2020, iFood addedover 80 000 new restaurants, bringing its network ofactive restaurants to 258 363.Swiggy was materially impacted by severelockdowns across India. When the pandemic firsthit India, many restaurants were forced to closeand the number of restaurants on the platformdropped significantly. Since then, governmentrestrictions have eased somewhat, and the marketis gradually recovering. Due to the three-month lagin reporting, the group’s financials reflect Swiggy’soperating results for January to June 2020. In thefirst quarter of this period, Swiggy recorded ordergrowth of 13% year on year and GMV growth of16% year on year. In the second quarter, when theeffects of the lockdown restrictions were at theirheight, orders declined by 73% year on year andGMV fell 62% year on year. Our share of Swiggy’srevenue contribution grew 13% (17%). Trading losscontribution for the period improved by ameaningful 43% (40%), reflecting lower marketingand delivery expenses as well as meaningful costreductions across the operations.In September 2020, iFood acquired SiteMercado,an online grocery platform in Brazil. This small butstrategic acquisition gives iFood new capabilities,expanding its product assortment, offeringcustomers greater convenience.Delivery Hero reported order growth of 93% andGMV growth of 61% to 5.1bn in the first half of itsfinancial year to June 2020. With revenue ofUS 1.1bn, our share is US 234m for the period.Delivery Hero operates in 49 markets and leads inover 90% of these. During the period, it engagedwith government bodies, customers and over630 000 restaurant partners on Covid-19 safetyprotocols and invested in initiatives such ascontactless delivery to keep its customers safe.Delivery Hero acquired InstaShop, a leading onlinegrocery marketplace in the Middle East and NorthAfrica (MENA) that works with over 1 500 vendors todeliver grocery orders to customers in under anPayments and FintechOur Payments and Fintech segment reported goodresults despite Covid-19, with revenue growth of27% (29%) to US 252m, driven by strong growthfrom its units in Europe and LatAm. The tradingloss was flat on the prior year at US 38m, asincreased profitability from the payments serviceprovider (PSP) business was offset by investment incredit after we increased our stake in PaySense inDecember 2019 to a majority position.PayU continues to benefit across its markets fromlarge secular trends towards more consumerstransacting online, and more online transactionssettled through alternative forms of payment tocash. Total payment value (TPV) reachedProsus condensed consolidated interim financial statements for the six months ended 30 September 20205
Commentary (continued)US 23.7bn, up 34% (37%), supported by a 25%increase in the number of transactions.Our businesses in Europe and LatAm recorded a55% (53%) increase in TPV, driven by highertransaction volumes of 34% as volumes shiftedonline, and local regulations supported digitalpurchases. This was particularly prevalent inPoland, Romania, Turkey and Colombia. Diversifyingthe merchant base to financial services andecommerce helped offset the decline in thetravel sector.India, our largest market, was affected as traveland hospitality came to an abrupt halt andecommerce was restricted to only essential servicesin the first phase of the country’s severe lockdown,which led to major supply chain disruptions. India’sTPV increased by 5% in the first quarter aslockdown restrictions were imposed. As regulationseased and digital payments adoption increased,the business recovered strongly in the secondquarter, resulting in 24% TPV growth in localcurrency for the period.Iyzico has strengthened our position in Turkey, whichis an important region for us. Red Dot Payments inSingapore was affected by restrictions on the traveland hospitality industry, but diversified into otherecommerce segments to offset the decline.With the step-up acquisit
Condensed consolidated statement of cash flows . 16 Notes to the condensed consolidated interim financial statements . 17 Independent auditor’s review report on the condensed . Prosus condensed consolidated interim financial statements for the six months ended 30 September 2020 1 Commentary
The accompanying notes are part of the interim condensed consolidated financial statements Interim condensed consolidated financial statements CMA CGM / 6 Three-month period ended March 31, 2021 Interim Condensed Consolidated Statement of Financial Position - Liabilities & Equity (in USD million) Note As at March 31, 2021 As at December 31, 2020
07 Condensed consolidated statement of financial position 08 Condensed consolidated statement of changes in equity 09 Condensed consolidated statement of cash flows . MultiChoice Group / Condensed consolidated interim financial statements for the period ended 30 September 2020 / 01. slightly more than the prior year due to higher
Condensed set of Interim Financial Statements An entity complying with IAS 34 has a choice of preparing a condensed set of Interim Financial Statements or a full set of IFRS financial statements. These Interim Financial Statements illustrate a condensed set of Interim Financial Statements based on the requirements of IAS 34.8. Where a full set of
These condensed interim financial statements were approved for issue on 29 August 2020. The financial statements have been reviewed, not audited. Condensed consolidated statement of profit or loss 5 Condensed consolidated statement of comprehensive income 6 Condensed consolidated balance sheet 7
interim financial statements report 04 consolidated interim financial statements 28 financial statements 31 notes to financial statements 37 certification of the condensed consolidated interim financial statements pursuant to art. 154 bis, fifht paragraph, of legislative decree 58/98 and of art. 81 - ter of consob regulation n. 11971/99
The interim condensed consolidated financial statements are expressed in Saudi Arabian Riyals (SR) and amounts are rounded to the nearest thousand. 3. Consolidation These interim condensed consolidated financial statements include the financial position and results of Samba Financial Group and its subsidiary companies.
These condensed interim consolidated financial statements have been prepared on a historical cost basis except for the revaluation of certain financial instruments to fair value. In addition, these condensed interim consolidated financial statements have been prepared using the accrual basis of accounting except for cash flow information.
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