Prosus Classifieds FY2024: Headcount and tech “optimisation” drives strong margin growth

The Netherlands-based Prosus saw revenue from its classifieds business unit grow by 27.0% year on year (y-o-y) during the 12 months to March (FY2024) due to the strong performance of OLX Europe, especially in the auto category, and the resilience of OLX Ukraine. Prosus is a subsidiary of South Africa-based Naspers.

In FY2024, its classifieds business unit generated $707 million U.S. in revenue. Its trading profit almost tripled to $172 million, pushing up its trading profit margin by 13 percentage points to 24.0%, driven “by strong revenue growth, balanced investment and optimisations across technology hubs to leverage costs through scale,” noted Prosus.

“Additionally, the business restructured headcount to streamline operations and optimise resource allocation.”

According to Prosus, revenue at OLX Europe’s motors category grew 45%, while activity bounced back to its pre-war level at OLX Ukraine.

“Despite the impact of high interest rates on property transactions across our markets, the real estate category experienced growth, with a solid 25% increase in revenue, reaching $96 million. South Africa continued to grow both its vertical platforms and sustained its profitability, delivering revenue of $46 million for the year,” it added.

During FY2024, Prosus exited the automobile transaction business (OLX Autos) by selling businesses in India, Indonesia, Chile and Turkey and closing them in Mexico, Colombia and Argentina. In the U.S., it continues to explore options for WeBuyAnyCar, the company said.

OLX Brasil — Prosus’s 50-50 joint venture with Adevinta — saw revenue and trading profit increase by 1% and 79%, respectively, to BRL887 million ($164 million) and BRL243 million.

“[OLX Brasil] is navigating a weak macroeconomic environment and is focusing on cost optimisation, mainly through headcount restructuring. Our local management team is committed to reinvigorating growth in this very important ecommerce market with balanced investments,” Prosus commented.

Source: Prosus

Read full results here, here and here.