The MultiChoice Group warns of a full-year headline loss; pay-TV operation hurt by foreign exchange losses and stake disposal charge to Phuthuma Nathi.

The MultiChoice Group, Africa's biggest pay-TV company, is warning that it expects to flip to a full-year headline loss this year, hurt by foreign exchange losses as well as a charge on a stake disposal at its South African business.

The MultiChoice Group listed on the Johannesburg Stock Exchange (JSE) in February this year.

It's expected that The MultiChoice Group will release its financial results on 18 June - it's first since it the spin-off from Naspers.

According to a trade statement MultiChoice issued late on Monday, the pay-TV operator said that it expects its said core headline earnings and trading profit to rise 8% to 12%, driven by subscriber growth as well as reduced losses in its MultiChoice Africa division in the rest of Sub-Saharan Africa outside of South Africa.

"Trading profit is expected to be between 9% (R0.6 billion) and 13% (R0.8 billion) higher than the prior year´s reported R6.3 billion".

The MultiChoice Group expects losses per share of between 673c and 739c, compared to earnings of 332c per share reported in the previous year.

"Headline loss per share for the current period is expected to be between 724 cents and 800 cents lower than the prior year´s reported headline earnings per share of 410 cents," says the MultiChoice Group.

MultiChoice had to allocate a 5%-stake in MultiChoice SA Holdings to Phuthuma Nathi Investments as part of its unbundling process when it got spun off from Naspers in February.