MultiChoice Group (MCG) H2 2024 earnings summary

Executive summary

• Delivered resilient group performance in FY24 despite challenging macroeconomic and currency conditions, with strategic milestones in Showmax, Moment, and SuperSportBet.

• Maintained a 26% trading profit margin in South Africa and achieved a 48% increase in Rest of Africa trading profit year-over-year.

• Achieved ZAR 1.9 billion in cost savings and reduced decoder subsidies by ZAR 1.5 billion.

• Showmax relaunched in 44 markets, driving record subscriber growth and high migration rates, with 16% growth in paying subscribers post-relaunch.

• Local content investment increased, with 52% of general entertainment spend on local content and a 4% year-over-year increase.

Financial highlights

• Organic trading profit increased 24% year-over-year to ZAR 12.4 billion before currency and Showmax investment impacts.

• Adjusted core headline earnings declined 20% to ZAR 1.3 billion; free cash flow dropped 79% to ZAR 589 million, impacted by Showmax investment and FX pressures.

• Revenue declined 5% year-over-year to ZAR 56.0 billion, but grew 3% organically in constant currency.

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

• Net debt at year-end was ZAR 16.5 billion, leverage ratio 1.53x, and ZAR 7.3 billion in cash and equivalents.

Outlook and guidance

• Targeting an additional ZAR 2 billion in cost reductions in FY25, with a multi-year cost program in place.

• Aims to maintain South African trading profit margin in the mid-20s and profitability in the rest of Africa.

• Focus on scaling Showmax, SuperSportBet, DStv insurance, and Internet businesses.

• Canal+ made a mandatory offer for shares at ZAR 125 per share, pending regulatory approval.

• Dividend declaration suspended due to Canal+ offer and related commitments.