Online Reporter
As anticipated, struggling pay-TV operator MultiChoice reported a loss for the year ended March 31, coming in with an adjusted core headline loss of R800 million, down from headline earnings of R1,3 billion a year prior.
In its results, published on Wednesday, the group said it lost 8 percent or 1,2 million linear (broadcast) subscribers over the year, to 14,5 million. The loss was evenly split between its South African and Rest of Africa subscribers.
It also had to absorb a R10,2 billion negative impact on its top line due to local currency depreciation against the dollar.
The group, which is under pressure from streaming rivals such as Netflix, said the past two financial years have brought significant financial disruption to economies, businesses and consumers across sub-Saharan Africa due to challenging macroeconomic conditions. The group’s overall performance was materially affected by structural changes in the video entertainment industry, including the rise of piracy, streaming services and social media.
It reported a 9 percent drop in revenue to R50,8 billion, attributed to an 11 percent decrease in subscription income due to price hikes, as well as the sale of a 60 percent stake in its insurance business.
MultiChoice’s streaming service, Showmax, grew active paying subscribers by 44 percent, gaining regional market share after relaunching the platform over a year ago. The group said its trading profit, which declined by R3,8 billion or 49 percent year-on-year to R4 billion, was materially affected by the R2,3 billion organic increase in trading losses in Showmax and the R5.2 billion in foreign currency revenue losses. — Moneyweb
