MultiChoice headline loss increases five-fold

MultiChoice, one of Africa's leading video entertainment providers, has reported a strong performance in the first six months of the financial year, despite facing foreign exchange impacts in several markets. In an interview with CNBC Africa, Tim Jacobs, the Chief Financial Officer of MultiChoice, highlighted the company's resilience and growth despite challenges in various regions. Jacobs noted that on an organic basis, the business saw an 18% year-on-year growth when excluding the impact of foreign currency. With the inclusion of the Showmax business, the company still achieved a commendable 10% growth. One of the key challenges faced by MultiChoice was the foreign exchange impact, amounting to 1.7 billion rand in the first six months. Jacobs explained that multiple markets experienced depreciation in their currencies, affecting the company's financials. However, he pointed out that the business performed well overall, with premium base subscribers increasing by 5%, a positive sign for the company. Jacobs attributed this growth to the company's strategic investments in content, including major events like the Rugby World Cup and new general entertainment programming. He also noted that the company's Showmax platform, a partnership with Comcast, incurred losses of around R800 million. Despite this, Jacobs expressed confidence in the platform's future potential, especially with the upcoming launch of the Peacock platform in February next year. Of particular interest is the upcoming SHOMAX EPL product, which is expected to cater to the large base of English Premier League fans in Africa. Jacobs highlighted the unique one-on-one relationship that SHOMAX will have with EPL fans, offering exclusive content tailored for the African audience. This innovative approach is projected to drive significant growth for MultiChoice in the region. Regarding the challenges in Nigeria, Jacobs acknowledged the volatility of the Naira and the impact it had on the company's operations. Despite the currency fluctuations, MultiChoice remains focused on operational efficiency and cost management to mitigate risks. In conclusion, Jacobs emphasized the company's commitment to delivering high-quality content and innovative products to its customers. With a strong performance in the first half of the financial year and promising developments on the horizon, MultiChoice is poised for continued growth and success in the competitive video entertainment industry in Africa.