Multichoice talks rand weakness

Multichoice says that it is affected by the current weakness in the rand as it buys much of its content, among other things, in dollars.

The rand recently traded at five year lows against the greenback, but that pressure has eased slightly after Lesetja Kganyago was revealed as the new Reserve Bank governor, replacing Gill Marcus, who retires on November 8.

Kganyago stressed his commitment to the bank’s mandate of stabilising prices, Reuters reported.

Market players are now focused on Finance Minister Nhlanhla Nene’s mid-term budget later this month, which is likely to show a widening deficit that could force the government to borrow more, the news agency said.

CEO at DStv Digital Media, John Kotsaftis, said that the local currency “is a big problem for us”, to the point where it affects how the group conducts its business.

He said that with the current weakness, the group may look to drop channels, albeit it marginal ones.

“It’s not looking good,” the group said. “We are far more cautious than we used to be.”

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Multichoice talks rand weakness