MultiChoice expects profit increase by at least R700m

Africa’s largest pay-TV operator MultiChoice said on Friday that it expects to report an increase in profits of R700m for the year to end-March 2020.

Earnings per share for the year is to be between 470c and 510c higher than last year’s loss per share of 374c.

Headline earnings per share for the period is expected to be between 460c and 500c higher than the prior year’s headline loss per share of 353c.

Core headline earnings per share are expected to be between 144c and 164c higher for the period, an increase of up to 40% from last year’s 410c.

The group attributed the results to an improvement in trading performance. In addition, MultiChoice did not have the burden of the non-recurring empowerment transaction cost, which had been incurred in the prior year, weighing on earnings this time around.

The company also said it had higher unrealised foreign exchange losses due to weaker local currencies, primarily the rand.

Trading profit is expected to be between R700m and R1.1bn higher than the R7bn reported last year, an increase of at least 10%.

The DStv operator is expected to release its full financial results for the period on June 10.

Shares in MultiChoice were 2.34% firmer in late afternoon trade on Friday at R95.69, giving the firm a R42.34bn market value. — BDlive