In a financial statement released on Tuesday, MultiChoice Group reported a significant downturn, with a 99% drop in half-year profits.
The South African pay television company described the current operating environment as “extremely hostile.”
MultiChoice, which owns DStv, SuperSport, and Showmax and operates across 50 sub-Saharan African countries, attributed the decline primarily to weaker local currencies.
Additionally, the company highlighted reduced consumer spending, particularly in Nigeria, and severe power disruptions in Zambia as major factors contributing to its losses.
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MultiChoice earlier announced it would release a financial report reflecting negative results this week. In the statement, the company emphasized that macroeconomic fluctuations and external exchange rates have adversely impacted its performance in the first half of 2024.
“The first half of the 2024 financial year was negatively impacted by severe pressure in the macroeconomic, foreign exchange rate, and consumer environment in key markets, most notably Nigeria and Zambia,” the company said.
MultiChoice reported that its adjusted core headline earnings per share dropped to 2 cents for the six months ending September 30, down from 356 cents per share in the previous year. The company also noted a 5% decline in subscriptions in South Africa and a 15% decrease across other African markets where it operates.
The group’s revenue declined by 10% to 25.4 billion rand ($1.41 billion) on a reported basis. However, on an organic basis—excluding foreign exchange impacts, mergers, and acquisitions—it grew by 4%.
Following the announcement, MultiChoice Group shares dipped by 0.3%.
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