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Overview
South Africa’s currency improved over the
past year, after having depreciated by close to
30% over the previous three years. Profitability
was positively impacted by the strengthening
of the rand since we earn our revenues in
South African rand and our cost base is
US dollar denominated. Operating margin
growth has been impacted by increased
competition, which has driven up the cost
of content and churn of customers from our
premium bouquet. Our customer growth is
mainly coming from the lower tiers, which has
driven the business to continue its focus on
cost reduction.
Competition is increasing with video
consumption on online platforms and global
players continuing to offer alternatives to our
services. As a result, it is becoming more and
more important to enhance and differentiate
our product offerings.
Despite a challenging environment and
increased competition, we continue to grow
our business by delivering value to our
customers with great content (local and
international) and improved service delivery.
This demonstrates our management team’s
continued commitment and focus in meeting
the group’s objectives and execution of
strategies to ensure value creation for all
stakeholders. This report illustrates our
commitment to sustainability and our
objective of enriching the lives of all our
stakeholders.
Executive chair
’
s review
(continued)
As a proudly South African business we continue to drive
investment in South Africa with R8,4bn spent with BBBEE
suppliers, including small and medium enterprises.
MultiChoice South Africa Holdings Proprietary Limited
Integrated annual report 2018
15
Review
(continued)