MultiChoice expects profits to fall
June 8, 2022
By Chris Forrester
South African broadcaster MultiChoice says that its headline earnings per share (HEPS) are expected to fall by as much as 25 per cent. The trading period to the end of March has been challenging enough, but it has suffered from foreign exchange losses that have hurt the pay-TV broadcaster.
MultiChoice says that its HEPS numbers for the year will be between 20 and 25 per cent lower than its 2021 numbers. Its actual Earnings/Share will likely fall between 35 and 40 per cent.
MultiChoice blamed “lower unrealised foreign exchange gains on the translation of transponder lease liabilities (satellite leases) stemming from a less significant appreciation in the rand against the US dollar year on year”.
The broadcaster also cited inter-country foreign exchange losses, not least the transfer of cash from Nigeria.
On the upside MultiChoice says that it is experiencing “sustained subscriber growth”, a recovery in ad-revenues as well as its focus on cost-reductions.
MultiChoice will unveil its full numbers on June 9th.