MultiChoice Group Limited (MCG) investor relations material

Executive summary

• FY25 was marked by significant macroeconomic headwinds, including weak consumer spending, currency volatility, and peak investment in Showmax, with management interventions and cost savings offsetting topline pressure.

• Active linear subscribers declined 8% year-over-year to 14.5 million, mainly due to weak consumer spending and macro challenges in key markets.

• New businesses such as DStv Internet, DStv Stream, KingMakers, and Showmax delivered strong year-over-year growth, with Showmax's paying base up 44%.

• The proposed acquisition by Canal+ is progressing, with regulatory milestones achieved, a mandatory cash offer at ZAR125 per share, and a long stop date extended to August/October 2025.

Financial highlights

• Organic trading profit of the core business increased 20% year-over-year, but reported trading profit fell 49% to ZAR4 billion due to FX losses and Showmax investment.

• Group revenue reached R50.8 billion, up 1% organically but down 9% on a reported basis due to currency weakness; subscription income fell 8%.

• Adjusted core headline earnings decreased by ZAR2.1 billion to a loss of R800 million, down 19% year-over-year.

• Free cash flow swung to a net outflow, down 187% year-over-year, impacted by lower EBITDA and Showmax investment.

• Cash balance at year-end was ZAR5.1 billion, with net available cash of ZAR2.0 billion and a leverage ratio of 2.2x.

Outlook and guidance

• Focus remains on closing the Canal+ deal, fulfilling regulatory conditions before the long-stop date, and targeting mid-20s trading margins in South Africa and a return to profitability in Rest of Africa.

• Cost saving target of at least ZAR2 billion for FY26, with continued investment in customer value proposition and partnerships.

• Narrowing trading losses in Showmax and maintaining a healthy balance sheet are priorities.