Multichoice reports 288% jump in FY HEPS

MultiChoice, Africa's largest pay-TV group, has announced an impressive 288 per cent surge in its headline earnings per share for the fiscal year ended in March. This remarkable growth comes despite the challenging backdrop of the global pandemic. MultiChoice CEO, Calvo Mawela, attributes the company's success to the dedication and resilience of its team in navigating the difficulties posed by the ongoing crisis. The group's profit rose to an all-time high of 10.3 billion rand, marking a significant 28% increase from the previous year. The company's core focus on providing quality content and expanding its subscriber base has paid off, with 1.4 million new subscribers added during the financial year. The decision to maintain a flat dividend reflects MultiChoice's cautious approach in light of uncertain economic conditions and ongoing pandemic-related challenges. Mawela emphasized the importance of responsible financial management during these unprecedented times and highlighted the need to address losses in other African markets. Despite the financial headwinds, MultiChoice remains optimistic about its future growth potential, particularly in the pay-TV segment across the continent where there is still room for expansion. Investments in local content creation have been a cornerstone of MultiChoice's strategy, with a focus on producing compelling and engaging programming that resonates with African audiences. The success of initiatives like 'Big Brother Nigeria' underscores the popularity of locally produced content, driving subscriber engagement and retention. By increasing its investment in local content, MultiChoice aims to strengthen its market position and attract a wider audience. Looking ahead, MultiChoice anticipates a positive outlook for its advertising revenue and commercial subscriptions, buoyed by improving business confidence and economic growth indicators. The company experienced a recovery in advertising revenue in the second half of the fiscal year, signaling a potential rebound in advertiser spending. With the rollout of vaccination programs and a more optimistic economic outlook, MultiChoice is optimistic about the prospects of a gradual recovery in the advertising sector. Despite ongoing challenges posed by the pandemic, MultiChoice's robust financial performance and strategic investments underscore its resilience and ability to adapt to changing market dynamics. The company's focus on innovation, local content, and expanding its subscriber base positions it well for continued growth in the competitive pay-TV industry across Africa.