MultiChoice’s maiden results will reveal a loss


MultiChoice’s maiden results will reveal a loss

Published Date: 2019-06-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

MultiChoice’s maiden results will reveal a loss

While earnings have been affected by foreign exchange losses and a stake given to its empowerment schemes, its core profit will be as much as 12% higher.

MultiChoice will report a loss in its first results as a listed entity.

In a trading statement, the video entertainment business that was unbundled by Naspers in February, said it would report a loss per share of between 673c and 739c for the year to end-March, down from earnings of 332c in 2018. Its headline loss per share would come in at between 724c and 800c from last year's headline earnings of 410c per share. It attributed the losses to the allocation of a 5% stake in MultiChoice SA to its Phuthuma Nathi empowerment schemes as part of the unbundling process. The rand's depreciation against the dollar also resulted in unrealised foreign exchange losses for the period.

However, it said trading profit was expected to be as much as 13% higher than last year's R6.3 billion, while core headline earnings per share (HEPS) would rise by between 8% and 12% from the 374c it reported last year. It considers core HEPS and trading profit as the most appropriate indicators of its operating performance as they adjust for non-recurring and non-operational items.

The listed company includes MultiChoice South Africa, MultiChoice Africa Holdings, Showmax, as well as the global digital platform security provider Irdeto.

It expects to report its results on 18 June.

Its shares closed 0.5% down at R124.40 yesterday. They debuted on the JSE at R95.59 on 27 February.

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