R2.5 billion payday for MultiChoice shareholders

Video entertainment company, MultiChoice Group (MCG) committed to invest in more local content after the group reported financial robust results for the year ended March 2020.

MCG reported a trading profit of R8 billion in the year under review. The solid financial performance saw the group declare a maiden dividend of R2.5 billion to its shareholders.

MCG unbundled from Naspers and listed in the JSE last year.

The company’s revenue went up 3% to R51.4 billion and included R42.8 billion in subscription revenue which increased 4% year-in-year.

MCG also saw a growth subscriber base to 19.5 million households, split between 8.4 million households in South Africa and a further 11.1 million households in the rest of the continent.

Calvo Mawela, CEO, said the company’s healthy balance sheet positions the group well to weather the uncertainties in the markets it operates in and that the company plans to further increase its investment in local content.

“We remain well-positioned with a sought-after product offering, significant scale, a diversified footprint across the African continent and a robust business model with a low reliance on advertising revenue,” Mawela said

“Importantly, we have hedging programmes in place to offset some of the currency pressures we’re exposed to and a healthy balance sheet, which includes R9.1 billion in cash. These organisational strengths provide us with confidence that we can withstand the impending macro-challenges and demands and continue to enrich lives through our video entertainment services.”