MultiChoice expects a significant boost in earnings per share and trading profit compared to the prior period, the company said in a trading statement.
“The board considers core headline earnings per share and trading profit as the two most appropriate indicators of the operating performance of the group, as they adjust for non-recurring and non-operational items,” MultiChoice said.
Compared to the group’s interim financial results for the six months ended 30 September 2019, the group expects core headline earnings per share for the current period to be between 40% and 45% higher than the prior period’s reported R4.37.
Trading profit is expected to be between 15% and 20% higher than the previous period’s reported figures, MultiChoice said.
“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.
“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.”
Compared to the prior period, the group expects earnings per share for the current period to be between 68% and 74% higher than the prior period´s reported earnings per share.
“Headline earnings per share for the current period is expected to be between 65% (220 ZAR cents) and 70% (240 ZAR cents) higher than the prior period´s reported headline earnings per share of 341 ZAR cents,” MultiChoice said.
“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.”
MultiChoice is set to release its latest financial results on 12 November 2020.