Africa’s leading pay-TV business with both local and international content offering, MultiChoice Group (MCG) is expected to report headline loss of between 324 cents and 390 cents ($0.2638) per share this year. This news which comes about four months after listing on the South African Bourse, Johannesburg Stock Exchange (JSE) was made known in a statement by the company to the shareholders.
According to the group, this loss was due to the depreciation of the Rand which led foreign exchange losses and the decision to sell off 5 percent stake in MultiChoice, South Africa Holdings to Phuthuma Nathi Investments 1 and Phuthuma Nathi Investments 2 at no consideration. It also expects the profit for the year ending March to be between 9 percent and 13 percent higher than the previous year. This was driven mainly by solid subscriber growth and a reduction in losses in the rest of Africa segment.
This wil be the first full-year results for the DStv parent as a JSE-listed company and it is expected to be published by June 18.
MultiChoice Group Ltd. (MCG) debuted on the Johannesburg Stock Exchange on Wednesday, February 27, following a spin off by tech giant Naspers Ltd. which made its intention to list MCG known last year.
The MCG spin-off saw Naspers distribute over 438.8 million shares to investors recorded on the Naspers securities register. By this, any investor holding Naspers shares as of 26 February, would receive shares in MultiChoice through a pro rata distribution in specie. After Naspers, unbundled the shares, shareholders received one MultiChoice share for every one ordinary ’N’ share and for every five ‘A’ ordinary shares held.
Founded 30 years ago, MultiChoice has grown to reach around 14 million households in 50 African countries, offering both paid-TV products and a fledgeling streaming service called ShowMax. As of March 31, 2018, the group generated more than R47 billion ($3.19 billion) in revenue and reported an operating profit of R6 billion ($407.6 million).