STRATEGIC FOCUS We are building a leading group of international media and e-commerce platforms to give users entertainment, trading opportunities, information and access to friends wherever they are. In the process we create value for shareholders, attract innovative and motivated employees and contribute to the communities we operate in, to ensure a sustainable business for the future.

HOW WE DO THIS

• Sustain organic growth of the business combined with some investments.
• Focus on markets with higher growth potential, where we can achieve sustainable positions.
• Increase the number of users accessing our internet products and services, and deepen their engagement with us.
• Expand the pay-television subscriber base maintain a local approach and innovative technology.
• Continue working with regulators. Attract the best talent – train and develop employees.
• Use our expertise and resources to benefit local communities where we operate.

EXAMPLES OF OUR STRATEGY IN ACTION

• E-commerce platforms were initially simple. We have since expanded into a number of verticals and service a number of e-commerce opportunities.
• Pioneering e-commerce in Africa with kalahari.net.
• Attained leadership in India in local social network services and games, with Tencent as a partner.
• Mail.ru’s listing on the London Stock Exchange and increase in value.
• In Latin America and Eastern Europe we are growing our core internet business and broadening our base by rolling out new services.
• MultiChoice’s South African DStv subscriber base now delivers entertainment to 3,5 million households. The Compact bouquet, which targets the emerging market, has grown steadily.Innovation at Irdeto with the development of its internet media business.

 

 

LOOKING AHEAD

Focusing on the internet we plan to expand the group through a combination of organic growth and acquisitions and to deliver value to our shareholders over the medium to longer term. Stringent processes apply when evaluating investment opportunities.

CHALLENGES

Each business unit in the Naspers group faces its own set of competitors. This adds complexity but reduces group risk, since we are unlikely to be wiped out by a single competitor or technological shift. The group approach to risk management is detailed here

Globally the regulatory environment for media and broadcasting is changing. The internet is subject to at least some legislation in all countries, but is less regulated than television or print in most countries. Competition in pay television has increased sharply in South Africa after new licences were issued. Many other countries on the continent are following the same trajectory.

Key challenges include:

• Attracting and retaining the right people.
• Inflated internet asset valuations, which make acquisitions difficult.
• Ability to innovate in a changing technological environment to sustain growth.
• Achieving the right balance when rolling out governance initiatives across a group operating in 131 countries, while encouraging those businesses to be innovative and entrepreneurial.