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.<\/p>\n
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.<\/p>\n
Trading profit is expected to be between 15% (R0.7 billion) and 20% (R1.0 billion) higher than the prior period\u2019s reported R4.8 billion.<\/p>\n
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\u2019s reported R4.8 billion, it said.<\/p>\n
“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.<\/p>\n
“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.”<\/p>\n
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.<\/p>\n
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.<\/p>\n
Multichoice will publish its interim results on 12 November 2020.<\/p>\n