MultiChoice is expected to report a rise in trading profit for the year ended March 2019, boosted by ‘solid subscriber growth’ for its DStv offering.
The pan-African pay-TV company listed on the JSE in February following a spin off by technology giant Naspers.
Multichoice said that it expects core headline earnings per share to be between 8% (30 cents) and 12% (45 cents) higher than 374 cents before.
Trading profit is expected to be between 9% (R0.6 billion) and 13% (R0.8 billion) higher than R6.3 billion. On an organic basis, trading profit is expected to be between 24% (R1.5 billion) and 30% (R1.9 billion) higher than the prior year’s reported R6.3 billion.
“The improved financial performance expected for the current period is mainly driven by solid subscriber growth and a reduction in losses in the Rest of Africa segment,” Multichoice said.
“Shareholders are reminded that 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,” it said.
The group expects to report a loss per share to be between 673 cents and 739 cents lower than an earnings per share of 332 cents before.
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.
MultiChoice said that the key reasons for the movements are:
- It had to account for the impact of allocating for no consideration a 5% stake in MultiChoice to Phuthuma Nathi Investments 1 and Phuthuma Nathi Investments 2 as part of an unbundling process.
- The impact of the depreciation of the rand against the US dollar has led to an increase in unrealised foreign exchange losses on translation of the group’s US dollar denominated transponder lease liabilities.
The group is expected to publish its results on 18 June.