Picture: FREDDY MAVUNDA
Picture: FREDDY MAVUNDA

Pay TV operator MultiChoice said on Monday it expects profit for the year to end-March to be between 9% and 13% higher than the prior year’s R6.3bn.

The group said in a trading statement it expected core headline earnings per share for the current period to be between 8% and 12% higher than the prior year’s R3.74.

The improved financial performance was mainly driven by solid subscriber growth and a reduction in losses in the rest of Africa segment, the company said.

This will be the group's first set of financial results released to the public. The market previously had to rely on results of former-parent company Naspers to understand MultiChoice’s financial position.

The continent’s biggest pay-TV operator listed on the JSE in February and is now valued at R54.5bn. It has about 14-million viewers across 50 countries in Africa.

The company said, however, it expected its headline loss per share to be between R7.24 and R8 lower than the prior year’s headline earnings per share of R4.10.

The group said these losses were due to the sale of a 5% stake in MultiChoice South Africa Holdings to Phuthuma Nathi Investments 1 and Phuthuma Nathi Investments 2 at no consideration. It also put some of the blame on the depreciation of the rand.

MultiChoice’s share price is up 17.35% since its listing on February 27. It lost 0.5% on Monday to close at R124.40.

The results are expected to be released on June 18.

gavazam@businesslive.co.za