Earnings

Revenue Surge and AI Integration …

Web Desk June 29, 2026

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This article first appeared on GuruFocus.

Release Date: June 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Naspers Ltd (NAPRF) reported a significant increase in revenue, reaching $9.7 billion, with profitability up by 44% to $1.3 billion.
The company’s ecosystems in Latin America, Europe, and India are all profitable, with core headline earnings per share up by 24%.
Free cash flow, excluding the Tencent dividend, increased by $257 million, marking an improvement of $1.4 billion over three years.
The company has successfully integrated AI across its operations, with hundreds of AI models powering more than 20 AI life assistants, enhancing customer experience and operational efficiency.
Naspers Ltd (NAPRF) has shown strong growth in its Latin American ecosystem, with businesses like Despagar and investments in companies like Advolve and Mevo expanding their market reach.

Negative Points

The company faces intense competition in the food delivery sector, particularly in Brazil, which has impacted profitability expectations for FY27.
There is a need for continued investment in iFood and Jet due to competitive pressures, which may limit EBITDA growth in the short term.
The company’s strategy has faced public criticism, with some stakeholders questioning the effectiveness of its AI-driven approach.
Despite positive growth, the company acknowledges that irrational competition in Brazil has led to increased costs per order, affecting short-term profitability.
The integration of new technologies and platforms, such as the unified backend for Jet, is still in progress and may take time to fully implement across all regions.

Q & A Highlights

Q: Can you provide insights on the expected EBITDA growth for FY27 and the impact of AI on future profitability? A: Fabricio, CEO of Prozos, stated that while FY27 may not see significant EBITDA growth due to increased investments in iFood and Jet amidst competition, he remains bullish on long-term profitability. The AI-driven Large Commerce Model (LCM) is already enhancing efficiency and reducing costs, contributing to current and future profitability. The impact of AI is expected to compound as it is integrated across more business units.

Q: What changes have been made in the selected cities for Jet, and how will these be implemented across the entire portfolio? A: Roberto Gandolfo, CEO of Just Eat Takeaway, explained that the focus has been on improving the growth flywheel by bringing high-quality traffic and leveraging LCM for customer segmentation. The unified backend platform is expected to be operational in one country within six months, with a subsequent rollout to other countries.