In its maiden results following its listing on the JSE in February, MultiChoice has reported a 12% increase in its subscriber base, to 15.1 million.
Revenue increased 6% to R50.1 billion and trading profit 11% (or 27% organically) to R7.0 billion. “This was underpinned by solid subscriber growth, as well as an ongoing focus on cost containment,” the group said in a statement on Tuesday (18 June 2019).
Core headline earnings, the board’s measure of sustainable business performance, climbed 10% to R1.8 billion and consolidated free cash flow doubled to R3.3 billion.
A total of 1.6 million subscribers were added across the continent – representing 12% year-on-year (YoY) growth.
“This was achieved despite continued macroeconomic headwinds and consumer affordability pressure, illustrating the resilience of our products,” MultiChoice said.
Core headline earnings, the board’s measure of sustainable business performance, was up 10% on last year at R1.8 billion.
Operating profit was 15% higher to R7.36 billion, and while no dividend is being declared for FY2019, the group said it remains on track to declare a dividend of R2.5 billion – or 569 cents per share – for FY2020.
The South African business delivered subscriber growth of 8% YoY or 0.5 million subscribers and generated revenues of R33.7 billion – up 3% from the prior year.
“This was on the back of healthy subscriber growth in the mass market and despite absorbing a 1% increase in value-added tax by not passing it on to customers,” Multichoice said.
“The Premium segment remained under pressure as consumers were impacted by rising fuel and other costs and we competed for share of wallet,” it said.
Average Revenue Per User (ARPU) declined from R335 to R322 due to the ongoing change in subscriber mix towards the mass market, the group said.
“Sustained efforts to grow the digital offering through Connected Video and position the business for the future, saw good uptake of both the Showmax and DStv Now services. As a result, online subscribers doubled year-on-year.”