MultiChoice expects massive earnings jump

MultiChoice Group, the company that operates DStv, says it expects expects core headline earnings per share for the year ended March 2021 to be between 32% (182 cents) and 37% (211 cents) higher than 569 cents a year ago.

Trading profit is expected to be between 25% (R2 billion) and 30% (R2.4 billion) higher than the R8 billion reported for the prior year, while on a constant currency basis, and excluding any M&A, trading profit is expected to be between 40% and 45% higher than before.

“The improved financial performance for FY21 was achieved despite continued macro-economic and Covid-19 challenges across the continent. Resilient revenue growth, strong cost control, shifts in content costs and the impact of embracing new ways of working as a consequence of Covid-19 allowed the business to offset these challenges.

“A further reduction in losses in the Rest of Africa segment has been the largest contributor to the improvement in group performance,” the owner of Supersport and ShowMax said.

Headline earnings per share for FY21 is expected to be between 280% (358 cents) and 295% (378 cents) higher than the prior year’s headline earnings per share of 128 cents, MultiChoice said.

“The key reasons for the above movements are an improvement in trading performance and unrealised foreign exchange gains due to stronger local currencies, primarily the South African rand,” it said.

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