MultiChoice Group (MCG) H2 2024 earnings summary

Executive summary

• Resilient FY24 performance despite macroeconomic and currency headwinds; South Africa trading margin held at 26% and Rest of Africa trading profit rose 48% year-over-year.

• Delivered R1.9bn in cost savings and reduced decoder subsidies by R1.5bn.

• Showmax relaunched, with paying subscribers up 16% and all subscribers migrated to the new platform.

• Local content accounted for 52% of general entertainment spend, with local content investment up 4% year-over-year.

• SuperSport broadcast 34,490 live events, up 39% year-over-year.

Financial highlights

• Revenue declined 5% year-over-year to R56.0bn, with 3% organic growth in constant currency.

• Trading profit fell 21% to R7.9bn; organic trading profit rose 24% to ZAR12.4bn before currency and Showmax investment impacts.

• Adjusted core headline earnings declined 20% to R1.3bn; free cash flow fell 79% to R0.6bn, impacted by lower profitability and Showmax investment.

• Active subscribers fell 9%; subscription revenue declined 7% reported but rose 2% organically.

• Irdeto revenue grew 17% year-over-year, with a 23% trading profit margin.

Outlook and guidance

• Canal+ made a mandatory offer at R125 per share, pending regulatory approval.

• FY25 cost-reduction target of ZAR2.0bn, with a multi-year cost programme in place.

• Aim to maintain South African trading margin in the mid-20s and Rest of Africa profitability.

• Priorities include scaling Showmax, SuperSportBet, DStv insurance and Internet businesses, and launching Moment B2C payments.