28 March 2025
Voluntary operational update
MultiChoice is in the process of preparing its financial results for the year ending 31 March 2025 (“FY25”) and hereby provides a voluntary operational update in respect of certain aspects of its business.
Shareholders are referred to the MCSA and MultiChoice Group Limited (MCG) interim financial results for the period ended 30 September 2024 which were released in November 2024. In those results it was, inter alia, indicated that:
- MCSA was operating in a challenging consumer environment, which resulted in negative subscriber growth and limited revenue growth. It also cautioned that, due to very high levels of personal indebtedness, it would take time for positive developments, such as lower interest rates and a stable ZAR against the USD, to result in materially higher disposable income for South African consumers; and
- MCG was navigating unprecedented external adversities, including macro-economic headwinds, as well as disrupted power supply and severe currency depreciation in some of its key markets in the Rest of Africa. The combination of these factors, together with the increased investment in streaming, resulted in the group reporting depressed interim financial results.
Since then, the group has continued to experience pressure, as household spending remained constrained by the ongoing cost-of-living crisis, compounded by elevated inflation and interest rates in many of its markets. This is likely to impact negatively on performance in FY25. MCG has returned to a positive equity position, but capital preservation remains a key consideration in the current environment.
While a decision regarding the MCSA dividend will be made by the MCSA Board in June 2025, Phuthuma Nathi shareholders should be aware that any MCSA FY25 dividend is likely to be significantly lower than prior years.
The information in this operational and market update is the responsibility of the directors of MultiChoice and has not been reviewed or reported by MultiChoice’s independent external auditors. Detailed annual financial results for FY25 are expected to be released on SENS on 12 June 2025.
Randburg
28 March 2025
FORWARD-LOOKING STATEMENTS
This announcement may contain "forward-looking statements". Forward-looking statements can be identified by words like "may," "will," "likely," "should," "expect," "anticipate," "future," "plan," "believe," "intend," "goal," "seek," "estimate," "project," "continue" and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of MultiChoice's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of MultiChoice's control. MultiChoice's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The forward-looking statements included in this announcement are made only as of the date of this announcement, and except as otherwise required by law, MultiChoice do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.