Material matters

In determining our material matters, we are guided by our business strategy, risks, our operations and the concerns of our stakeholders. The material matters addressed in this report are issues on the board agenda that are methodically discussed and addressed.

1Customer satisfaction

Our primary focus is, as it always has been, the customer.

Delivering value to our customers is critical to our business success. To ensure we do so, we focus on developing relevant products, selecting the best content and designing excellent customer service experiences with the customer journey at the centre.

We operate a primarily fixed-cost business, meaning that optimising these elements to support customer growth momentum and retention is a critical driver of our operating performance. With an eye to expanding our base through traditional and new service lines, we also need to manage exogenous pressure points that can include tightening consumer spending, unemployment and electricity shortages.

2Regulatory environment

We believe regulations are important to protect consumers but must be well considered and applied to all players equally.

The industries in which we operate are highly regulated and our various group entities are therefore subject to legislative and regulatory oversight in the countries in which they operate. Material changes in regulation could require us to adapt our current business model and could impact our value proposition to customers.

As the regulatory environment becomes more complex, the impact and importance of managing this risk increases. Our approach to regulation remains positive as we proactively and frequently engage with regulators through our dedicated teams. This ensures we keep abreast of all developments and provide input that promotes a well-considered regulatory framework, allowing for a thriving industry.

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3Pay-TV industry evolution

Media formats undergo perpetual change and our experience has taught us that video entertainment is no different.

The global video entertainment industry continues evolving as new technologies and business models provide opportunities to differentiate service offerings. A key trend is the ongoing impact of streaming services (OTT) in disrupting traditional linear pay-TV operators.

This presents both risks, in the form of increased competition for subscribers and content, and opportunities for us to scale our OTT services and adapt our business model. As the industry evolves, our investment in local content remains a key differentiator and strategic advantage.

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4Executing our business plans

Conceptually, our business is fairly easy to understand, but we operate in a complex environment with shifting conditions and practical challenges in executing our strategy.

Each of our business segments contributes in different ways to value creation. We set ourselves challenging targets and our leadership teams are incentivised to execute our specific segmental business plans.

South Africa

As a more mature operation, the South African business is focused on retaining existing customers, while also driving OTT adoption and growth in the mass market. At the same time, its ambition is to deliver broadly stable profits and cash flows.

Rest of Africa

In the Rest of Africa, which is currently making a loss, the focus is to return the business to profitability over the medium term. A fundamental aspect of this turnaround is our ability to navigate the macroeconomic challenges that we face in many of our African markets. While our diversified footprint across the continent allows us to absorb some weakness, significant exchange rate deterioration outside of historic trends and ongoing pressure on consumer discretionary spend could pose a risk to our turnaround plans.

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Economy

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Technology

As piracy impacts our pay-TV and OTT business if left unaddressed, our technology business is focused on delivering critical security solutions and media security to our group companies and external customers globally. At the same time, we are investing in new revenue-generating opportunities in connected industries to drive ongoing future growth.

5Attracting and retaining talent

Our people are fundamental to our success.

We seek to delight our customers by providing access to superior content and entertainment. Attracting and retaining the right people to achieve this goal is a key aspect of our strategy. We are passionate about creating a workplace where people are engaged and inspired.

Key focus areas for us include growing diverse, representative talent in critical areas of differentiation (such as engineering and data science) and developing succession plans for critical workforce segments to ensure growth and continuity. Leading organisations start with winning cultures. Therefore, we consistently strive to nurture an enabling environment so that our people can create the best solutions for our customers.

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6Upholding the local entertainment industry

Supporting and uplifting the local entertainment industry.

As a responsible corporate citizen, we aim to make a contribution beyond just business. Our investment in local content generates jobs and provides a platform for home-grown talent to shine.

In addition, the local sport we produce and broadcast (including some broadcasts on community TV stations) supports sport bodies. It enables them to continue developing sport, especially in South Africa.

We believe in strategic CSI with the majority of our initiatives aimed at promoting sport and producing content (filmmaking) across Africa in addition to positively addressing issues of health, education and empowerment.

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