MultiChoice H1 HEPS down 38%
South African MultiChoice Group, the parent of brands such as DStv and SuperSport, reported drop in headline earnings of 38 per cent largely due to the surge in content costs. Despite this, the group saw a jump in revenue of 3per cent and operating profit at 1per cent. Calvo Mawela, CEO, MultiChoice joins CNBC Africa for more.
Thu, 11 Nov 2021 16:12:00 GMT
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AI Generated Summary
- MultiChoice Group reports a 38% drop in headline earnings for the first half of the year but sees a 3% increase in revenue and a 1% rise in operating profit
- Calvo Mawela addresses the ongoing tax dispute in Nigeria, expressing confidence in resolving the matter amicably with regulatory authorities
- MultiChoice remains focused on investing in local content while navigating rising costs of content acquisition and supporting the South African economy
South African MultiChoice Group, the parent company of popular brands such as DStv and SuperSport, recently reported a 38% drop in headline earnings for the first half of the year. Despite the decline in earnings, the group saw a 3% increase in revenue and a 1% rise in operating profit. Calvo Mawela, the CEO of MultiChoice, remains optimistic despite facing regulatory hurdles in Nigeria.
In a recent interview with CNBC Africa, Mawela addressed concerns related to a tax dispute in Nigeria, where the company is embroiled in a legal battle over a $4.4 billion tax liability. Mawela assured investors that they have been engaging with regulatory authorities in Nigeria in a constructive manner and are hopeful for a resolution soon. He emphasized that MultiChoice is committed to abiding by the tax regulations in Nigeria and has a clean track record of tax compliance.
Mawela also discussed the rising costs of content acquisition, particularly in international and sports content. While the company has been successful in negotiating lower prices for some content, there have been instances where costs have increased. Despite this, MultiChoice remains focused on investing in local content, which has shown promising returns. Mawela highlighted the importance of catering to African audiences' preferences for local content and mentioned the company's plans to continue increasing investments in this area.
Regarding the South African economy, Mawela praised the finance minister's mid-term statement, which outlined positive developments and the need for continued reforms and fiscal consolidation. He expressed confidence in the government's commitment to economic growth, which reassured business investors like MultiChoice. Mawela emphasized the company's dedication to supporting the South African economy through its investments and product expansions.
In conclusion, despite facing challenges in Nigeria and rising content acquisition costs, MultiChoice Group remains steadfast in its commitment to delivering quality entertainment to its customers and supporting economic growth in South Africa and across the continent.