Prosus said on 2 March 2023 that OLX Group’s core classifieds business continues to achieve a good performance throughout the fiscal year, with continuous growth and growing profitability, and is well-positioned for additional growth and margin expansion. OLX Autos, the neighboring vehicle transaction company, has lately been hit by continuous macroeconomic and market issues, comparable to its listed competitors. Increases in the cost of capital, inflation, and the reversal of epidemic trends have resulted in a severe and lasting decline in the used automobile market.
While OLX Autos has established leading positions in several of its important areas as a consequence of its excellent technological platforms and local focus, Prosus and its stockholders should no longer pursue a worldwide expansion plan. Prosus will investigate all possibilities for the OLX Autos company, recognizing that there is substantial potential in local markets.
In addition to OLX Autos, OLX’s core classifieds operations are profitable, cash flow positive, and expanding rapidly. The departure of OLX Autos will significantly enhance the overall profitability profile of the Classifieds section.
Prosus is committed to completing this process swiftly and effectively for the benefit of all parties involved.
