Media company Multichoice says that it expects its earnings and profits for the six months ended September 2020 to be as much as 45% higher than a year ago.
It said in a trading statement on Monday (9 November), that it expects core headline earnings per share and trading profit – the two most appropriate indicators of the operating performance of the group – to be between 40% (175 cents) and 45% (197 cents) higher than 437 cents previously.
Trading profit is expected to be between 15% (R0.7 billion) and 20% (R1.0 billion) higher than the prior period’s reported R4.8 billion.
On an organic basis (ie, reflecting results on a constant currency basis, excluding M&A) trading profit is expected to be between 35% (R1.7 billion) and 40% (R1.9 billion) higher than the prior period’s reported R4.8 billion, it said.
“The improved financial performance for the current period was achieved despite continued macro-economic headwinds across the continent, including the impact of Covid-19, which especially depressed advertising revenues and commercial subscription revenues,” Multichoice said.
“The timing of content costs and a strong focus on overall cost reduction allowed the group to drive a further reduction in losses in the Rest of Africa segment, which has been the largest contributor to the improvement in group performance.”
Headline earnings per share for the current period is expected to be between 65% (220 cents) and 70% (240 cents) higher than 341 cents previously.
The key reasons for the movements are an improvement in trading performance and lower realised foreign exchange losses due to more favourable forward exchange contracts maturing, it said.
Multichoice will publish its interim results on 12 November 2020.