{"id":694817,"date":"2023-06-08T16:40:52","date_gmt":"2023-06-08T14:40:52","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=694817"},"modified":"2023-06-08T16:40:52","modified_gmt":"2023-06-08T14:40:52","slug":"big-loss-for-multichoice","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/694817\/big-loss-for-multichoice\/","title":{"rendered":"Big loss for Multichoice"},"content":{"rendered":"<p>Multimedia group MultiChoice has notified shareholders to expect a significant loss when it presents its financial results for the year ended 31 March 2023.<\/p>\n<p>In a trading statement on Thursday (8 June), the group said it expects its headline earnings per share to be between 671 cents and 690 cents lower (&gt;100%) than the reported Headline Earnings per share of 381 cents in FY22.<\/p>\n<p>This would translate to a headline loss of between 290 cents and 309 cents per share.<\/p>\n<p>Moreover, the group added that it expects its earnings per share for FY23 to be between 1,126\u00a0 cents and 1,142 cents lower (&gt;100%) than the FY22 reported earnings per share of 318 cents.<\/p>\n<p>The group said that the reduction in earnings and headline earnings per share is partly due to the higher unrealised foreign exchange losses on the transition of the group&#8217;s US dollar liabilities, stemming from the rand&#8217;s weakness.<\/p>\n<p>Moreover, the increase in foreign exchange losses associated with the repatriation of cash from Nigeria at the parallel rate is hurting its results.<\/p>\n<p>It added that the loss in earnings per share is also attributable by the impairment of the KingMakers Group,\u00a0 which is valued at R8.9 billion at 100%, caused by an increase in discount rates in the gaming technology sector and Nigeria &#8211; with the Nigerian Naira outlook mostly negative.<\/p>\n<p>The group said that its trading profit for the year is expected to be flat, between 0% and 5% (R0.5 billion) lower than the ZAR10.3 billion recorded in FY22.<\/p>\n<p>The drop in operating profit is associated with the <a href=\"https:\/\/businesstech.co.za\/news\/business\/669519\/multichoice-is-launching-a-new-mega-streaming-service-with-comcast\/\" target=\"_blank\" rel=\"noopener\">Comcast partnership<\/a> that was announced near the end of FY23.<\/p>\n<p>On an organic basis, which reflects a constant currency basis and excludes mergers and acquisitions, trading profit is expected to be between 3% (R0.3 billion) and 8% (R0.8 billion) higher than the R10.2 billion in FY22 reported ZAR10.3bn.<\/p>\n<p>Core headline earnings per share &#8211; excluding the impairments and currency costs &#8211; are expected to be between 0% and 4% (33 cents) higher than the 814 cents from FY22.<\/p>\n<p>The group noted that it has seen strong subscriber growth, the Rest of Africa returned to profitability, and its cost savings exceeded targets.<\/p>\n<p>However, the difficult economic environment in South Africa, increased investment in recorded subsidiaries and marketing for the 2022 World Cup weighed heavily on the group.<\/p>\n<p>Full details will be provided on 13 June in the group&#8217;s\u00a0consolidated annual financial statements.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/business\/694101\/multichoice-adds-new-streaming-service-to-dstv\/\" target=\"_blank\" rel=\"noopener\">Multichoice adds new streaming service to DStv<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MultiChoice is expecting its headline earnings to swing into a loss.<\/p>\n","protected":false},"author":10,"featured_media":694827,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26,1253],"class_list":["post-694817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline","tag-multichoice"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/694817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=694817"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/694817\/revisions"}],"predecessor-version":[{"id":694833,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/694817\/revisions\/694833"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/694827"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=694817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=694817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=694817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}