Tue, 24 Nov 2020

Multichoice expects profit bump of at least 20%

08 Nov 2019, 04:13 GMT+10

Multichoice expects to report headline earnings growth of between 20% to 25% for the six months to end-September.

Trading profit is expected to be between 20% (R800m) and 25% (R1bn) higher than the prior year´s R3.9bn.

"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," the group said in a statement.

Multichoice also benefited from a lower depreciation of the rand against the US dollar compared to the prior period which has led to a decrease in unrealised foreign exchange losses.

Its results will be released on November 11th.

After being unbundled out of Naspers, Multichoice was listed on the JSE in February. Its share price was up since listing, and gained another half a percent on Thursday.

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