Top South Africa tech investor says it is no longer just a Tencent story

LEAD WITH THE HUMAN ANGLE For years, Rowan Williams, chief investment officer at Nitrogen Fund Managers, has watched Prosus navigate the complex dance between its own operating businesses and the behemoth that is Tencent. As an astute observer of the tech landscape, Williams knows that Prosus' reliance on Tencent has been a major point of contention for investors. But now, with all of Prosus' operating ecosystems having reached profitability, the stakes are higher than ever. Prosus is no longer just a Tencent story, and the implications are profound for its investors and the broader tech ecosystem.

Prosus' trading statement reveals a remarkable milestone: all of its operating ecosystems have finally achieved profitability. This is evidence of the company's relentless focus on building businesses capable of generating earnings beyond the Tencent gravy train. The numbers are staggering: $7.3 billion in revenue and $1.1 billion in ecosystem-adjusted EBITDA for the year ended March 31, 2026. Core headline earnings per share are expected to increase by between 19% and 28%, while headline earnings are forecast to rise by between 6.7% and 15.7%. These figures demonstrate that Prosus is finally starting to shed its reliance on Tencent's cash flows.

For years, investors have questioned whether Prosus' collection of operating businesses could create enough value to justify the billions invested in them. While Tencent consistently delivered outsized returns, many of Prosus' businesses remained focused on growth rather than profitability. But now, with all of its ecosystems profitable, Prosus is poised to become increasingly independent. This is a seismic shift in the tech landscape, one that has far-reaching implications for investors and the broader ecosystem. As Williams noted, "That should help Prosus become increasingly independent and less reliant on Tencent's cash flows."

Prosus' journey towards profitability is evidence of the rise of the decacorn, a new breed of tech giant that is increasingly focused on building sustainable, profitable businesses. The decacorn is a creature of the emerging markets, where companies like Prosus and Tencent have built vast empires through innovative business models and strategic investments. As the tech landscape continues to evolve, it's likely that we'll see more companies follow in Prosus' footsteps, prioritizing profitability and sustainability over growth at all costs.

As Prosus embarks on this new chapter, it's clear that the company is poised for significant growth. With all of its ecosystems profitable, Prosus is well-positioned to become a major player in the tech landscape. But what does this mean for investors and the broader ecosystem? In my opinion, Prosus' newfound independence will be a turning point for the tech industry, paving the way for a new era of sustainable, profitable growth.

As we look to the future, one thing is certain: Prosus is no longer just a Tencent story. The company has finally achieved profitability, and its investors are reaping the rewards. But this is just the beginning. With its newfound independence, Prosus is poised to become a major player in the tech landscape, driving growth and innovation for years to come.