A business model that drives value

INPUTS

THE RESOURCES AND RELATIONSHIPS WE RELY ON
       

OUTCOMES

HOW WE ENHANCED OUR CAPITALS
           
 
FINANCES
  • ZAR9.8bn equity (FY19: ZAR9.8bn)
  • ZAR0.1bn financial debt (FY19: ZAR0.1bn)
  • 55 059 MultiChoice Group shareholders
       
FINANCES
  • ZAR2.5bn core headline earnings (FY19: ZAR1.8bn)
  • ZAR1.7bn in share repurchases (FY19: ZARnil)
  • 30% return on capital employed (FY19: 30%)
  • ZAR2.5bn dividend declared
 
TECHNOLOGY AND PLATFORMS
  • Widespread DTH(4) satellite footprint covered by four different satellites (two through Intelsat and two through Eutelsat)
  • Fully invested DTT(5) network covering 117 cities over eight countries
  • OTT services: DStv Now and Showmax
  • Numerous support technologies (including Al) for customer service, billing, playout, archiving, scheduling and Irdeto security encryption
       
TECHNOLOGY AND PLATFORMS
  • ZAR0.2bn investment in technology assets (FY19: ZAR0.3bn)
  • ZAR2.6bn transponder costs (FY19: ZAR2.6bn)
  • User interface (UI) enhancements to OTT platforms
  • ZAR112m building and infrastructure spend (FY19: ZAR54m)
 
INDUSTRY EXPERTISE
  • 35 years in industry
  • Market leadership across 50 countries
  • Deep understanding of entertainment needs of customers
  • Irdeto has 50 years’ experience in security solutions
       
INDUSTRY EXPERTISE
  • ZAR6.2bn invested in local general entertainment and sport content (FY19: ZAR5.5bn)
  • Local content library exceeds 56 800 hours (FY19: 52 700(1))
  • 40% of total general entertainment content spend was on local content (41% in constant currency) (FY19: 40%)
               
 
OUR PEOPLE
  • 6 894 permanent employees (FY19: 7 053)
  • Inclusive, customer- and people-centric culture with strong employee brand ambassadorship
       
OUR PEOPLE
  • ZAR191m invested in skills development (FY19: ZAR127m)
  • 3 018 employees formally trained (FY19: 4 849)
  • 47% of our employees are women (FY19: 47%) and 53% are men (FY19: 53%)
  • Robust compliance and governance structures
 
CUSTOMER AND SUPPLIER RELATIONSHIPS
  • 19.5m 90-day active subscribers (FY19: 18.6m)
  • More than 400 B2B customer relationships through Irdeto
  • Relationships with local and international content providers, key satellite technology providers and a network of 5 604 accredited installers and 1 747 independent service providers across the continent
  • Preferential procurement initiatives
       
CUSTOMER AND SUPPLIER RELATIONSHIPS
  • 0.9m net growth in 90-day active subscribers (FY19: 2.2m)
  • Irdeto won nine tier-one customers from competitors in the past two years
  • 75% customer satisfaction in South Africa (FY19: 76%)
  • 71% customer satisfaction for DStv (FY19: 70%) and 70% customer satisfaction for GOtv in the Rest of Africa (FY19: 67%)
  • ZAR10.4bn spent with local South African suppliers (FY19: ZAR10.3bn), including ZAR4.9bn on South African small and medium enterprises (FY19: ZAR3.4bn)
 
CORPORATE CITIZENSHIP
  • Relevant licences provided by regulators across the continent
  • Local communities who collectively produce the future of film and sporting talent in the countries where we operate
  • Beneficiaries of the Phuthuma Nathi BBBEE scheme
  • Use of electricity and water for operations
       
CORPORATE CITIZENSHIP
  • ZAR12.0bn total tax contribution (FY19: ZAR10.2bn)
  • Invested ZAR247m(2) in significant corporate social investment (CSI) initiatives across the group (FY19: ZAR207m)
  • Provided opportunity for Phuthuma Nathi shareholders to convert Phuthuma Nathi shares into MultiChoice Group shares
  • Light carbon footprint with initiatives applied to minimise impact

 

 

 

BUSINESS ACTIVITIES

WHAT WE DO
     

OUTPUTS

OUR PRODUCTS AND SERVICES
           
           
 



     
  • Offers services in 50 markets
  • Six core bouquets, at varying price points
  • >150 linear video channels
  • Catch-up and movie rental (“Box Office”) services available
         
       
  • Offers services in eight markets
  • On average 60 linear video channels
  • Four core bouquets, at varying price points
         
       
  • Streaming service DStv Now offered as a value-added service for DTH customers
  • SVOD service Showmax has localised versions in three markets, with standard and mobile offerings available
         
       
  • Commercial airtime sales across 130+ pay-TV channels
         
       
  • Cybersecurity and anti-piracy services to the group plus external customers in 71 countries, across multiple industries including media security, gaming, connected transport and other connected industries
         
         
       

(1) FY19 library hours were restated from ~50 000 to 52 700 to align with FY20 disclosure. (2)Includes non-cash advertising donations of ZAR79m in FY20 and ZAR59m in FY19. The CSI spend disclosed in the FY19 integrated annual report related only to cash contributions.(3)GE refers to general entertainment content. Numbers shown exclude religion, specialist, FTA and audio channels. (4)Direct to home. (5)Digital terrestrial television.

MANAGING TRADE-OFFS

We manage our capital to provide long-term value to stakeholders. In the short term, it is not always possible for all capitals (or the stakeholders who provide them) to benefit equally, and sometimes some capitals may benefit at the expense of others. In deciding how best to allocate our scarce capital, we are often required to make trade-offs between capitals and stakeholders, and between short and long-term value creation. Some of the areas where we made such trade-offs are described below:

PRICING DECISIONS

RESTRUCTURING IN THE CUSTOMER CARE DIVISION

ONGOING DRIVE FOR COST SAVINGS