Multichoice is warning shareholders that it expects to report significant losses for the first half of the year.
“In addition to the most challenging operating environment in the group’s history, MultiChoice has also entered the peak investment cycle of Showmax and expects losses and headline losses per share to increase as a result of the early life cycle of the Showmax business,” the company said in a statement.
It’s estimated that losses could reach R1.84 billion (€97.7 million). The operator, which is in the process of being purchased by Canal+, is also blaming currency pressures and the consumer ecconomic environment – shorthand for fewer subscribers – in Nigeria and Zambia.
It wants to make R2 billion in cost savings and has adopted an inflationary pricing strategy.
The traditional pay-TV business wants to move away from its direct-to-home satellite business. Earlier this year, it relaunched Showmax with a brand-new look, new app, and entirely new product suite. There are three plans: Showmax Entertainment, Showmax Entertainment Mobile and Showmax Premier League Mobile.
