MultiChoice has warned shareholders that it expects a significant loss when it presents its financial results for the year to 31 March 2023.
It says it is facing a challenging South African environment and making increased investment in decoder subsidies.
The Group is making significant savings and is benefitting from a return to subscriber growth in the rest of Africa.
In a trading statement released on Thursday, the South African-based TV platform said it was expecting its trading profit to be between 0% and 5% (ZAR0.5bn) lower than the ZAR10.3bn reported for the corresponding period in 2022.
Part of the loss is because of the recently announced partnership with Comcast that will bring a version of the Sky Glass streaming TV to the African market.
MultiChoice is also suffering from the relative weakness of the South African Rand. Foreign exchange losses associated with the repatriation of cash from Nigeria has also given cause for concern.
On an organic basis, which reports on a constant currency basis trading profit is expected to be between 3% (R0.3 billion) and 8% (R0.8 billion) higher than the R10.2 billion in FY22 reported ZAR10.3bn.
