MultiChoice is set to release its financial results for the year ended 31 March 2019, which will show that the company made a trading profit of around R7 billion.
The company said its trading profit is expected to be between 9% (R0.6 billion) and 13% (R0.8 billion) higher than the prior year´s reported R6.3 billion.
On an organic basis – reflecting results on a constant currency basis – trading profit is expected to be between 24% (R1.5 billion) and 30% (R1.9 billion) higher.
The improved financial performance, MultiChoice said, is mainly driven by solid DStv subscriber growth and a reduction in losses in the "Rest of Africa" segment.
BEE and weak rand hurt earnings per share
It was, however, not all good news for shareholders. MultiChoice expects the loss per share for the current period to be between R6.73 and R7.39 lower than the prior year's reported earnings per share of R3.32.
Headline loss per share for the current period is expected to be between R7.24 and R8.00 lower than the prior year´s reported headline earnings per share of 410 cents.
MultiChoice explained that the key reasons for the movements are:
It had to account for the impact of allocating for no consideration a 5% stake in MultiChoice to Phuthuma Nathi Investments 1 and Phuthuma Nathi Investments 2 as part of an unbundling process.
The impact of the depreciation of the rand against the US dollar has led to an increase in unrealised foreign exchange losses on translation of the group's US dollar denominated transponder lease liabilities.
Further details about MultiChoice's results will be provided in the consolidated provisional annual results, due to be released on 18 June 2019.