Prosus profit jumps 84% as deal spree sets stage for European push

By Leo Marchandon

June 29 (Reuters) - Dutch digital services operator Prosus reported an 84% leap in full-year adjusted core profit on Monday as it looks to expand its successful Latin American business model across Europe following a run of aggressive dealmaking.

Prosus deployed some $8.5 billion for acquisitions over the past year. That included the purchase of Just Eat Takeaway.com, which it will use as the foundation of a European business bringing together food delivery, groceries and fintech, mirroring its Latin American strategy.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 84% to $1.3 billion as revenue increased 57% to $9.7 billion. Prosus posted record free cash flow of $1.5 billion, up from $1 billion a year earlier, and raised its full-year dividend by 40% to €0.28 per share.

Prosus is developing a large commerce model, an AI shopping assistant trained on transaction data from its platforms to recommend products and help users complete purchases across its services.

With cost emerging as a leading concern for companies implementing AI, Chief Financial Officer Nico Marais told Reuters that Prosus is turning to open-source options rather than relying on remote-access American models, arguing they are cheaper and deliver comparable results.

REPLICATING LATAM SUCCESS IN EUROPE

Following its deals push, Marais said the focus for the year ahead would shift toward integrating those acquisitions and improving profitability across existing services, with bolt-on M&A continuing though at a reduced pace.

Just Eat Takeaway.com, which Prosus acquired for €4.1 billion ($4.7 billion) last year, contributed $1.9 billion in revenue and $83 million in adjusted EBITDA despite a 7% volume decline.

Prosus has installed new management at Just Eat tasked with turning the business around with a focus on marketing and efficiencies as it positions the unit as a European linchpin.

The company's Latin American food delivery platform iFood grew adjusted EBITDA by 178% to $400 million while European online marketplace OLX's adjusted EBITDA rose 61% to $481 million.

(1 euro = $1.1392)

(Reporting by Leo Marchandon in GdanskEditing by David Goodman and Joe Bavier)