Prosus confirms $549 mln Meituan sale, reports mixed H1 results

Investing.com -- Prosus (AS:PRX) publicly confirmed for the first time that it sold $549 million of its Meituan stake, marking a significant shift in the Dutch technology investor’s Chinese holdings as it reported mixed first-half fiscal 2026 results on Monday.

The sale included approximately $249 million during the first half and approximately $300 million in October. 

The disclosure represents the first public confirmation of the Meituan selldown by Prosus, which holds major stakes in Chinese technology companies including Tencent.

The company, which operates eCommerce businesses across Latin America, Europe and India, reported eCommerce revenues of $3.62 billion for the six months ended September 2025, in line with consensus expectations of $3.63 billion and up from $2.96 billion in the first half of fiscal 2025. 

Adjusted EBITDA came in 1% above consensus at $530 million with a 15% margin, compared to $229 million in the prior year period. Adjusted EBIT landed 1% below consensus at $400 million with an 11% margin, up from $181 million the year before.

Performance varied sharply across Prosus’s portfolio companies. Brazilian food delivery platform iFood posted revenues of $880 million, exceeding consensus expectations of $782 million, though food delivery orders grew 11%, broadly in line with projections. 

Romanian online retailer eMag disappointed with revenues of $1.13 billion versus consensus of $1.24 billion.

Profitability showed similar divergence. iFood’s profit missed consensus by approximately $5 million and eMag’s profitability was weak, though online classifieds platform OLX’s higher adjusted EBIT helped offset the shortfalls.

Despite the mixed results, Prosus reaffirmed its full-year guidance of eCommerce revenue between $7.3 billion and $7.5 billion and eCommerce adjusted EBITDA of $1.1 billion to $1.2 billion, excluding Just Eat Takeaway.

The company completed two acquisitions during the period. The La Centrale acquisition closed in November, while Just Eat Takeaway was acquired and delisted on November 17.

Free cash flow improved approximately $399 million to approximately $1.3 billion, including the Tencent dividend. Excluding the Tencent dividend, free cash improved to approximately $59 million compared to negative $104 million the prior year.

Prosus also sold $4.6 billion of Tencent shares during the period, using proceeds to fund its share buyback program.

The company had pre-announced its earnings per share results the previous week, as required by JSE listing rules when EPS varies by more than 20% from the prior period. 

Core headline EPS from continuing operations was guided to increase 20.1% to 28.5% year-over-year for the first half.