Tech investor Prosus flags sharp drop in full-year profit

AMSTERDAM (Reuters) – Technology investor Prosus (OTC:) on Wednesday said its profit dropped significantly last year due to impairments and lower contributions from its biggest holding, Chinese software and gaming giant Tencent.

Prosus said it expected earnings per share to have fallen by 40% to 47% in the year through March 2023 as Tencent was hit by COVID-19 lockdowns and regulations in China.

“The operating environment was characterised by significant geopolitical and macroeconomic uncertainty,” Prosus said in a trading update.

The company said earnings from consolidated businesses in the second half of the year had been stronger than in the first six months, and that cashflow from operations had shown a “meaningful improvement” over the year.

Prosus cut back its stake in Tencent from 29% to 26% in the past year. It will publish its full results on June 27.