This review sets out highlights of the group’s financial performance for the past year. Full details appear in the annual financial statements.

OVERVIEW OF GROUP RESULTS

The group achieved a solid performance over the past year, increasing consolidated revenues by 18% and core headline earnings were up 13%. These results were underpinned by a diversified portfolio and a strong financial position.

Major areas of growth were the internet and pay-television businesses. Worldwide the internet industry continued its expansion from which most of our internet businesses benefited. The resilience of our pay-television operations in an increasingly competitive environment underscores the benefit of quality content, although rising costs will place margins under pressure. Our print media business experienced a limited recovery in advertising revenues, whilst the technology business was able to improve margins.

CORPORATE ACTIVITIES

The group issued a seven-year US$700m bond, with a coupon rate of 6,375%. The proceeds were used to partly pay down an offshore revolving credit facility (RCF).

During March the group refinanced its RCFs. These were increased to US$2bn and the tenure extended to 2016. The facilities bear interest at USD LIBOR plus 1,75% before commitment and utilisation fees.

REVENUES

Consolidated revenues expanded by 18% to R33bn. Consolidated internet revenues (excluding associates) were up 36%, while growth of the subscriber base saw pay-television revenues increase by 19%.

TRADING PROFIT

Consolidated trading profit, which includes finance cost on transponder leases, but excludes intangible amortisation, other than software and other gains/losses lifted 7% to R5,8bn. The reduction in margins was largely the result of higher costs in the pay-television business.

NET INTEREST COST

Net interest cost on cash and loans increased from R286m last year to R575m, the result of funding investments with debt.

EQUITY-ACCOUNTED RESULTS

Our core earnings from equity-accounted associates grew to R3,6bn, mostly from strong performances at Tencent and Mail.ru Group.

DILUTION GAIN

The reported dilution gains of R1,5bn are solely theoretical, arising mainly from the contribution of the group’s stake in Mail.ru into the newly listed entity.

CORE HEADLINE EARNINGS

Core headline earnings for the year grew 13% to R6bn. A calculation of headline and core headline earnings is detailed in the summarised annual financial statements here. As regularly reported to shareholders the board maintains the view that core headline earnings is an appropriate measure of the group’s sustainable operating performance, as it excludes once-off and non-operating items.

CASH FLOWS AND STATEMENT OF FINANCIAL POSITION

This earnings performance delivered positive free cash flows of R4bn. Our funding structure remains sound with total consolidated net debt, excluding satellite leases of R3,9bn. This represents a net debt:equity ratio of 10%.

SIGNIFICANT ACQUISITIONS

Details of significant acquisitions appear in the summarised annual financial statements on page 144.

SUMMARISED AND ANNUAL FINANCIAL STATEMENTS

The summarised annual financial statements appear here. The full annual financial statements for the year ended 31 March 2011 are enclosed with this report and are also available on our website at www.naspers.com.

Proposed dividend per N share: 270 cents per share

+27% compound growth per annum
(Compounded growth over 10 years: 27% per annum)