Multichoice has warned that profits could be between 16% (R1.0 billion) and 21% (ZAR 1.3 billion) lower than the anticipated R6.1billion previously reported.
The entertainment group issued the warning ahead of its Interim Trading Statement for the period to September 30, 2023, which is due to be released next week.
It blamed the fall on currency issues in its Rest of Africa markets and the additional costs involved in the relaunch of the SVOD service Showmax.
“The expected increase in losses and headline losses per share is primarily due a sharp depreciation in local currencies against the US dollar. This primarily impacts the revaluation of USD denominated transponder leases and the non-quasi equity foreign exchange losses on the intergroup loans with MultiChoice Nigeria. Losses were further impacted by the increased investment in Showmax ahead of its relaunch in the second half of FY24,” the company said in a statement.
MultiChoice said it absorbed a R1.7 billion cost due to weaker currencies, resulting in the trading profit impact.
