MultiChoice has told shareholders that it has been hit by an by “adverse and volatile economic environment”.
The update is in response to Johannesburg Stock Exchange rules that require companies to provide a trading statement as soon as they are satisfied the current reporting period will differ by at least 20% from the financial results of the previous corresponding period.
MultiChoice is anticipating a fall of between 19% and 23% on the ZAR10 billion trading profit reported for the year ending March 30, 2023.
The South African pay-TV company has responded to the downturn by reducing the subsidies it provides on its decoders, amongst other actions.
Its currently in the process of being sold to Vivendi’s Canal+ unit in a R125.00 per share deal.
In addition to the downturn in the economy, MultiChoice has been impacted by its increased investment in streaming service Showmax and foreign exchange losses on intergroup loans with MultiChoice Nigeria of ZAR3.6 billion.
