MultiChoice reports first full-year profit

Africa’s largest pay TV operator MultiChoice, reported its first full-year profit as a stand-alone company earlier this week.

The company, which serves 19.5 million households in 50 countries on the continent, was spun off by parent company Naspers last year, and initially struggled with losses in its operations outside its home market, South Africa.

MultiChoice said that during its first full-year since the split from Naspers, it had benefited from favourable foreign exchange movements, cut costs and improved the performance of its businesses elsewhere in Africa.

Calvo Mawela, CEO, said the company was pleased with its performance, but that it faced “unprecedented times”.

“Our healthy balance sheet positions us well to weather the uncertainties in our markets going forward,” Mawela added.

Subscriber growth slowed slightly, to stand up 5% year-on-year. MultiChoice said consumers were increasingly under financial pressure in many markets and also cited drought-related electricity shortages in southern Africa and one-off sporting events that did not recur.

It reduced losses in its divisions outside South Africa by R800m ($46.9m), and cut R1.4bn ($82.1m) in costs throughout the year, it said.