Multichoice Group said on Friday that it expects core headline earnings a share for the year to March 31 to be between 32 percent (182 cents) and 37 percent (211c) higher than the prior year’s 569c.
Trading profit was expected to be between 25 percent (R2 billion) and 30 percent (R2.4bn) higher than the R8bn reported in the prior year, the group said in a trading update.
On a constant currency basis and excluding mergers and acquisitions, trading profit was expected to be between 40 percent (R3.2bn) and 45 percent (R3.6bn) higher than the prior year’s reported R8bn.
The improved financial performance was achieved despite macro-economic and Covid-19 challenges across the continent.
“Resilient revenue growth, strong cost control, shifts in content costs and the impact of embracing new ways of working as a consequence of Covid-19 allowed the business to offset these challenges,” the group said.
A further reduction in losses in the Rest of Africa segment had been among the largest contributors to the improvement in group performance.
Headline earnings per share (Heps) were expected to be between 280 percent (358c) and 295 percent (378c) higher than the prior year’s Heps of 128c.
The key reasons were an improvement in trading performance and unrealised foreign exchange gains because of stronger local currencies, primarily the South African rand.