Written by Helen Nyambura-Mwaura | From Reuters

South African e-commerce and media firm Naspers, the continent’s biggest company by market value, posted a surprise 2 percent drop in full-year earnings on Monday after ratcheting up expansion spending, sending its shares lower.

Naspers used 7.7 billion rand ($719 million) on development spend, a 79 percent jump from a year ago. It also holds $1.6 billion offshore that can be used partially for acquisitions and further expansion, its chief executive said.

Analysts polled by Reuters had forecast core headline earnings, which exclude some one-off items and considered the main measure of profit, would rise by as much as 15 percent.

They instead shrunk 2 percent to 2,181 cents per share.

“I am a little disappointed with the results,” said Reuben Beelders, portfolio manager at Gryphon Asset Management.

Naspers share price was down nearly 4 percent by 1307 GMT at 1,220 rand, but were up 11 percent so far this year.

The Internet segment, which includes websites like FlipKart, Souq.com and OLX, was the biggest profit churner, riding on Naspers’ shareholding in China’s Tencent’s 0700.HK and on Mail.ru MAILRq.L in Russia.

Read more from Reuters