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Trading Statement for the year ended 31 March 2025
MULTICHOICE GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2018/473845/06)
JSE Share Code: MCG ISIN: ZAE000265971
("MultiChoice" or "the Company" or "the group")
Trading statement for the year ended 31 March 2025
Shareholders are advised that the group is finalising its consolidated annual financial statements for the year ended 31
March 2025 ("FY25" or the "current period").
In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies are required to publish a trading
statement as soon as they are satisfied, with a reasonable degree of certainty, that the financial results for the current
reporting period will differ by at least 20% from the financial results of the previous corresponding period.
The earnings per share and headline loss per share financial information included in this announcement constitutes
forecast financial information in terms of regulations 111(9) and 111(10) of the Companies Regulations, 2011, made in
terms of sections 120 and 223 of the Companies Act, No. 71 of 2008 (read together in this context as the "Companies
Regulations").
The current period has seen the continuation of unprecedented financial disruption for economies, corporates and
consumers across sub-Saharan Africa due to several macro-economic factors, including weaker average exchange
rates, elevated inflation and interest rates, and power supply challenges. Combined with the impact of structural industry
changes in video entertainment, such as the rise of piracy, streaming services and social media, as well as the cost of
investing in Showmax, this has materially affected the performance of the MultiChoice Group. The group has acted
decisively to counter these headwinds by, focusing on key areas within its control such as maintaining inflationary
pricing discipline, growing new revenue streams and driving further efficiencies to manage costs and cash flows.
The table below summarises the group's estimated changes in earnings and headline loss per share (per the
Companies Regulations), trading profit, and adjusted core headline loss per share for the year ended 31 March 2025,
as compared to the year ended 31 March 2024 ("FY24" or "prior year"), with explanations for the expected movements
discussed thereafter.
Figure in Expected Expected %
comparative year movement range increase (+) /
ended 31 March for year ended 31 decrease (-) range
Metric 2024 March 2025
Financial information per Companies Regulations
Earnings/(Loss) per share ZAR cents (935) +1197 to +1234 +128% to +132%
Headline loss per share ZAR cents (715) +443 to +472 +62% to +66%
Non-IFRS measures
Trading profit (reported) ZAR'bn 7.9 -3.70 to -4.02 -47% to -51%
Trading profit (organic)* ZAR'bn 7.9 -0.55 to -0.87 -7% to -11%
Adjusted core headline earnings/(loss) per share ZAR cents 313 -491 to -504 -157% to -161%
* "Organic" means excluding the impact of foreign exchange translation effects and group composition changes.
The group expects to report positive earnings per share, mainly driven by management's actions noted above, the
recognition of a profit on the sale of a 60% shareholding in NMS Insurance Services (SA) Limited ("NMSIS") to Sanlam
Life Insurance Limited in November 2024, and a downward adjustment to the Showmax put option liability. Similarly,
the group expects the headline loss per share (which excludes the profit on the sale of NMSIS) to narrow year-on-year.
The ongoing investment in the Showmax streaming business, which remains at an early stage of development and has
yet to scale into its cost base, is expected to result in the group reporting a lower trading profit. On an organic basis
(excluding the effects of foreign currency and group composition changes), the decline in trading profit is expected to
be much smaller.
The group expects adjusted core headline earnings per share to broadly follow the trends noted in trading profit, partially
offset by lower cash extraction losses due to a narrower gap between the official and parallel exchange rates in Nigeria
during FY25.
Context for trading profit and adjusted core headline earnings per share
The board considers trading profit and adjusted core headline earnings per share to be two appropriate indicators of
the operating performance of the group, as they adjust for non-recurring and non-operational items.
Organic trading profit and adjusted core headline earnings per share are considered to be non-IFRS measures. Organic
trading profit is calculated by excluding foreign currency movements and the financial impact of changes in the
composition of the group. Adjusted core headline earnings is calculated by adjusting headline earnings for the following
items, net of tax and non-controlling interests: a) amortisation of intangible assets arising from business combinations;
b) accounting adjustments related to IFRS 3: Business Combinations; c) equity-settled share-based payment
compensation; d) unrealised and non-recurring foreign currency gains/losses; e) certain fair-value adjustments under
IFRS; f) non-recurring current and deferred taxation impacts; g) non-recurring empowerment transactions; h)
acquisition-related costs and once-off contractual settlements; i) non-recurring, non-routine impairments of certain
assets; and j) losses on cash remittances from Rest of Africa markets, mainly in Nigeria, net of tax and the non-
controlling interest.
The financial information in this announcement is based on the draft consolidated financial results of the group for the
year ended 31 March 2025 ("draft financial results"), which have been prepared using the accounting policies that are
materially consistent with previously published audited results of MultiChoice. These draft financial results provide the
directors with a reasonable degree of certainty that the financial results for the current year will differ by at least 20%
from the financial results of the previous corresponding year.
The financial information contained in this announcement is the responsibility of the board of directors of MultiChoice.
The board of directors of MultiChoice accepts responsibility for the information contained in this announcement and
confirms that to the best of its knowledge and belief, the information contained in this announcement is true and correct
and confirms that this announcement does not omit anything likely to affect the importance of this information contained
in it.
Ernst & Young Inc., the Company's auditor, have issued a report on the earnings per share and headline loss per share
financial information contained in this announcement, in accordance with regulations 111(9) and 111(10) of the
Companies Regulations, 2011, which is available for inspection at MultiChoice's registered offices.
Shareholders are advised that the non-IFRS measures contained in this announcement have not been reviewed or
reported on by the Company's auditors.
Further details will be provided in the consolidated financial results, due to be released on SENS on 11 June 2025.
Randburg
5 June 2025
Sponsor: Merchantec Capital
Important notice
Shareholders should take note that, pursuant to a provision of the MultiChoice memorandum of incorporation,
MultiChoice is permitted to reduce the voting rights of shares in MultiChoice (including MultiChoice shares deposited
in terms of the American Depositary Share ("ADS") facility) so that the aggregate voting power of MultiChoice shares
that are presumptively owned or held by foreigners to South Africa (as envisaged in the MultiChoice memorandum of
incorporation) will not exceed 20% of the total voting power in MultiChoice. This is to ensure compliance with certain
statutory requirements applicable to South Africa. For this purpose, MultiChoice will presume in particular that:
- all MultiChoice shares deposited in terms of the MultiChoice ADS facility are owned or held by
foreigners to South Africa, regardless of the actual nationality of the MultiChoice ADS holder; and
- all shareholders with an address outside of South Africa on the register of MultiChoice will be
deemed to be foreigners to South Africa, irrespective of their actual nationality or domicilium,
unless such shareholder can provide proof, to the satisfaction of the MultiChoice board, that it
should not be deemed to be a foreigner to South Africa, as envisaged in article 40.1.3 of the
MultiChoice memorandum of incorporation.
Shareholders are referred to the provisions of the MultiChoice memorandum of incorporation available at
www.multichoice.com for further detail. If shareholders are in any doubt as to what action to take, they should seek
advice from their broker, attorney or other professional adviser.
Date: 05-06-2025 05:40:00
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