Is Prosus (ENXTAM:PRX) Reframing Its Growth Story With E-commerce Profits and Tencent Share Buybacks?

• Prosus N.V. recently reported its half-year earnings for the period ended September 30, 2025, with revenue reaching US$3.62 billion and net income rising to US$5.63 billion, attributed to strong results from its e-commerce businesses and a partial sale of its Tencent stake.
• Management highlighted operational profitability in its operated businesses and confirmed the group's focus on technology and artificial intelligence to drive efficiency and growth, as well as executing one of the world's largest share buyback programs funded by Tencent share sales.
• We'll explore how Prosus's strengthened e-commerce profitability and ongoing share buybacks may reshape its investment narrative and growth outlook.

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Prosus Investment Narrative Recap

To be a Prosus shareholder, you need to believe in the potential for sustainable e-commerce profitability combined with value creation through capital returns, notably supported by partial divestments in Tencent. The latest half-year results showcased strong e-commerce performance and sizeable share buybacks, both of which reinforce the ongoing narrative that operational efficiency is the primary near-term catalyst. However, these developments do not materially reduce the risk that large-scale investments might not deliver expected returns, which remains a pivotal concern.

Among the recent updates, the confirmation of Prosus’s substantial share repurchase program stands out. The company has bought back US$4,600 million of shares in just six months, totaling nearly US$33,500 million since mid-2022, directly linking capital return actions to proceeds from Tencent disposals and highlighting the focus on shareholder value alongside operational improvement.

In contrast, investors should also be fully mindful that significant capital reserves and ambitious new investments mean the risk remains if these allocations do not...

Read the full narrative on Prosus (it's free!)

Prosus' outlook anticipates $9.9 billion in revenue and $11.8 billion in earnings by 2028. This assumes a 17.1% annual revenue growth rate, but a decrease in earnings of $0.7 billion from the current $12.5 billion.

Uncover how Prosus' forecasts yield a €63.25 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have issued four fair value estimates for Prosus, ranging between €36.51 and €70 per share. While many see opportunity in current operational profitability and capital returns, others point to the ongoing risk that aggressive investments may not yield the intended rewards, reflecting broad differences in how Prosus’s future is viewed.

Explore 4 other fair value estimates on Prosus - why the stock might be worth as much as 27% more than the current price!

Build Your Own Prosus Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Prosus research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Prosus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Prosus' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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