{"id":495459,"date":"2023-06-08T16:30:53","date_gmt":"2023-06-08T14:30:53","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=495459"},"modified":"2023-06-08T16:33:01","modified_gmt":"2023-06-08T14:33:01","slug":"dstv-parent-multichoice-in-big-trouble","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/broadcasting\/495459-dstv-parent-multichoice-in-big-trouble.html","title":{"rendered":"DStv parent MultiChoice in big trouble"},"content":{"rendered":"<p>DStv parent company MultiChoice has warned shareholders about a massive decline in profit ahead of the publication of its annual results for the 2022\/2023 (FY23) financial year.<\/p>\n<p>The broadcaster is currently finalising its results and told shareholders it expected to report substantial drops in earnings and headline earnings per share.<\/p>\n<p>&#8220;Compared to FY22, the Group expects earnings per share for FY23 to be between R11.26 and R11.42 lower than the FY22 reported earnings per share of R3.18,&#8221; MultiChoice stated.<\/p>\n<p>That would work out to a loss of between R8.08 and R8.24 per share, amounting to a total loss exceeding R3.58 billion when accounting for all of MultiChoice&#8217;s issued shares.<\/p>\n<p>Headline earnings per share are expected to decline by R6.71 and R6.90 ZAR from the FY22 reported headline earnings per share of R3.81.<\/p>\n<p>That equates to a headline loss per share between R2.90 and R3.09. Overall headline losses would therefore amount to between R1.28 billion and R1.37 billion.<\/p>\n<p>MultiChoice blamed the reductions on two main factors:<\/p>\n<ul>\n<li>Higher unrealised foreign exchange losses on the translation of the Group&#8217;s USD liabilities (including transponder leases) stemming from the sharp depreciation of the Rand against the US dollar<\/li>\n<li>An increase in foreign exchange losses associated with the repatriation of cash from Nigeria at the parallel<\/li>\n<\/ul>\n<p>MultiChoice said it recorded strong subscriber growth, while its Rest of Africa business returned to profitability and its cost savings targets were exceeded.<\/p>\n<p>However, its performance was dragged down by a &#8220;challenging&#8221; South African environment, increased decoder subsidy investment, and marketing for the 2022 Fifa World Cup.<\/p>\n<p>Furthermore, earnings per share were also impacted by the impairment of the KingMakers Group, driven by increased discount rates in the broader gaming technology sector.<\/p>\n<p>The MultiChoice board insisted that it regards trading profit and core headlines per share as the two most important performance indicators for the group, as these adjusted for non-recurring and non-operation items.<\/p>\n<p>The company expects trading profit to be 0% to 5% lower than the previous year. That would work out to a drop of R500 million over the 2021\/2022 year&#8217;s R10.3 billion in trading profit.<\/p>\n<p>The company said the reduction accounted for costs associated with the Comcast partnership <a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/482229-dstv-owner-multichoice-announces-massive-streaming-video-deal.html\" target=\"_blank\" rel=\"noopener\"><strong>announced in early March 2023<\/strong><\/a>.<\/p>\n<p>MultiChoice will report its FY23 annual results on Wednesday, 14 June 2023.<\/p>\n<p>The markets have already reacted to the expected earnings decline, with MultiChoice&#8217;s shares plummeting, as shown in the graph below from <a href=\"https:\/\/dailyinvestor.com\/markets\/quote\/MCG\" target=\"_blank\" rel=\"noopener\"><strong>Daily Investor<\/strong><\/a>.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/MultiChoice-share-price-drop_June-2023-.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-495481\" src=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/MultiChoice-share-price-drop_June-2023-.jpg\" alt=\"\" width=\"1200\" height=\"473\" srcset=\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/MultiChoice-share-price-drop_June-2023-.jpg 1200w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/MultiChoice-share-price-drop_June-2023--600x237.jpg 600w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/MultiChoice-share-price-drop_June-2023--800x315.jpg 800w, https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/06\/MultiChoice-share-price-drop_June-2023--768x303.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><\/p>\n<hr \/>\n<h2 class=\"my-4\">Now read: <a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/495003-south-africas-netflix-library-and-prices-vs-the-world.html\" rel=\"bookmark\">South Africa&#8217;s Netflix library and prices vs the world<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>The pay-TV broadcaster expects to report a multi-billion rand loss in its annual results for the 2022\/2023 financial year. <\/p>\n","protected":false},"author":341042,"featured_media":440142,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[24],"tags":[85,35,475,70167],"class_list":["post-495459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-broadcasting","tag-dstv","tag-headline","tag-multichoice","tag-pay-tv-broadcaster"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/495459"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341042"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=495459"}],"version-history":[{"count":2,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/495459\/revisions"}],"predecessor-version":[{"id":495485,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/495459\/revisions\/495485"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/440142"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=495459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=495459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=495459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}