FY21 Interim Results
For the period ended Sept – 2020
Subscriber base maintained growth, exceeding 20m for first time
Delivered solid financial performance despite impact of COVID -19
Executed successfuly against strategic and product innovation roadmap
Resilient performance by Africa’s leading video entertainment platform
Underpinned by our world class technology, our emphasis is on offering great content across different platforms and building an ecosystem which keeps customers engaged. We believe that, whether organically or through third parties, offering our customers an ecosystem of video entertainment options will be fundamental to our long-term success and to making our customers’ lives more convenient.
Calvo Mawela – Chief Executive Officer
MultiChoice Group has successfully executed against its product, content and innovation roadmap, whilst at the same time expanding its video entertainment ecosystem.
Investment in BetKing
DStv Explora Ultra
Showmax Pro and Showmax Free
EXECUTIVE REVIEW OF OUR PERFORMANCE
The group added 1.2m 90-day active subscribers year on year (YoY) to close the period ended 30 September 2020 (1H FY21) on 20.1m households and exceeds the 20m subscriber milestone for the first time. This represents growth of 6% YoY, similar to the prior year, as increased consumer demand for video entertainment services and an easing of electricity shortages in southern Africa were offset by rising consumer pressure in many markets. The 90-day subscriber base is split between 11.4m households (57%) in the Rest of Africa and 8.7m (43%) in South Africa.
Revenue increased 2% (-1% organic) to ZAR26.1bn, with subscription revenues of ZAR22.2bn increasing a solid 5% (3% organic) YoY. Top-line momentum was significantly impacted by COVID-19 in the following areas:
- Advertising revenue declined ZAR0.6bn YoY, mainly due to a lack of sport advertising and a generally softer advertising market as a result of lower economic activity. This has, however, returned to nearly pre-COVID-19 levels in the months of August and September.
- Commercial subscriptions were ZAR0.3bn lower than the prior period with hotels, restaurants and other commercial customers largely closed during lockdowns. Although business in the hospitality industry has resumed in recent months, it is expected to take some time to fully normalise.
Group trading profit rose 19% to ZAR5.7bn (38% organic), benefitting from a ZAR0.5bn (ZAR1.2bn organic) reduction in losses in the Rest of Africa and a resilient performance in South Africa. The trading profit impact of COVID-19 was largely neutral, as the ZAR0.9bn revenue loss mentioned above was offset by ZAR0.8bn in delayed content costs.