Friday, November 8, 2019

MultiChoice to post a significant increase in earnings for 6 months to end-September 2019.

MultiChoice says that the Randburg-based pay-TV operator expects to announce a significant increase in earnings for the 6-month period to 30 September 2019.

MultiChoice, that operates brands like DStv, GOtv and Showmax, is set to release its interim financial results for the period on Monday 11 November 2019.

In a trading statement released before the release of its interim financial results for the half-year until the end of September 2019, MultiChoice says that "Compared to the group’s results for the 6 months ended 30 September 2018, the group expects core headline earnings per share for the current period to be between 20% and 25% higher than the prior year´s 352 ZAR cents".

"The board considers core headline earnings per share and trading profit as the two most appropriate indicators of the operating performance of the group, as they adjust for non-recurring and non-operational items."

MultiChoice expects a 20% to 25% increase in trading profit for the same period despite tough economic conditions in South Africa, as well as across several countries in sub-Saharan Africa.

It's in fact improvements in reducing losses in the rest of Africa outside of South Africa that will contribute the most to MultiChoice's increased earnings.

MultiChoice says that "The improved financial performance expected for the current period is despite continued macro-economic headwinds faced across the continent, which are impacting disposable income at a consumer level".

"Management has remained focused on tight cost controls to offset these challenges and continued to reduce losses in the Rest of Africa segment, which has been the largest contributor to the improvement in group performance."