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MultiChoice is growing strongly but DStv Premium is under pressure

MultiChoice Report The DStv premium segment is still under pressure, but it is growing well from the low-floor pay TV bouquets.

In the year ended March 31, 2019, MultiChoice expanded its total activity base to 15.1 million with a growth rate of 12%, adding 1.6 million subscribers across Africa. Core headline revenues were up 10 percent to 1.8 trillion won. Trade profits were at a level of 10.2 billion yuan, similar to the previous year, and the trading margin was stable at 30%. However, the group reported a headline loss of $ 150 million or more in expenses related to expanding surpluses and losses related to foreign exchange contracts.

The group said in a statement to shareholders, "Strong economic performance" has been achieved despite the macroeconomic upsurge and consumer price pressures that have shown the resilience of our products. "

Multi-Choice said it is the first time that the "rest of Africa", which has 7.7 million subscribers in South Africa, has exceeded 7.4 million subscribers.

Sales grew 6 percent to $ 50.1 billion a year ago, but subscription revenues grew 4 percent to $ 41.2 billion. "This means that our value strategy in South Africa continues to be successful and we have accelerated growth in the past year as a result of healthy contributions in South Africa."

Group trading profits increased to RMB1.1 billion due to a loss of RMB 900 million in the rest of Africa. An additional 1.3 billion was removed from the base of the year.

The group continued to invest in local content, adding 4 hours and 600 hours to bring the local content library closer to 50,000 hours. Spending on local general entertainment content as a percentage of overall general entertainment content increased from 38% to 40%, depending on the strategy to reach a 45% goal.

Cash flow

The combined cash flow of € 330 million increased by 96% compared to the previous year due to the non-recurrence of one-off prepayment of content in the previous year, as well as the improved outcome of transactions with the rest of Africa, and cash transfers from Angola.

South African businesses earned about 500,000 subscribers, an 8% increase in subscribers, and a 3% year-on-year increase of 33.7 billion. "This has been evidenced by a healthy subscriber growth in the mass market and a 1% increase in Value Added Tax (VAT) by not delivering to customers."

However, the DStv Premium segment said, "As consumers and consumers are affected by rising fuel and other costs, we continue to feel pressure and we compete for wallet share." As a result, average revenue per user decreased from R335 to R322.

Online streaming subscribers have doubled every year, MultiChoice said. This was driven by a "good understanding" of Showmax and DStv Now.

The group said it would announce a dividend of W2.5 trillion ($ 5.6 per share) in FY2020, although it did not announce dividends. – © 2019 NewsCentral Media

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