Naspers has reported that its South African video entertainment business, along with Tencent, were the main contributors to its 45% increase in core headline earnings.
Earnings increased to R8.8 billion for the 6 months ended on 30 September 2015, Naspers reported in its interim results.
The South African video entertainment group consists mostly of DStv operator MultiChoice, M-Net, and SuperSport.
Naspers said the SA group continued to deliver customer growth and improved financials.
MultiChoice reported in its interim financial results that its group revenue increased from R15.1 billion to R17.1 billion, while its core headline earnings grew from R3.2 billion to R3.6 billion over the past year.
“An unparalleled line-up of sports and general entertainment content was the key driver of this performance,” MultiChoice said.
DStv’s subscriber base in South Africa also grew from 5.1 million to 5.5 million homes year-on-year, with 156,000 net additions in the six months leading up to 30 September 2015.
The whole video-entertainment segment in Naspers saw more or less the same trading profit compared to the previous year of R5 billion, even though revenue increased to R22.584 billion from R20.186 billion.
This is because of the group’s investment in its new video on demand service ShowMax, weakening economies and currencies, and sizeable foreign input costs in sub-Saharan Africa.
Despite the challenges the rest of the group faced, steady growth was recorded in South Africa.