Bright fu­ture de­spite crit­i­cism

Finweek English Edition - - Marketplace Simon Says -

Naspers* an­nounced plans to un­bun­dle and sep­a­rately list Mul­ti­Choice in the first half of 2019. Aside from the mam­moth Ten­cent and mod­est Mail.ru prof­its, Mul­ti­Choice is the only other profit cen­ter in Naspers. For the past fi­nan­cial year Mul­ti­Choice made a trad­ing profit of some $369m (around R5.5bn). On a P/E of, say, 12 times this means a mar­ket cap of just over R66bn – putting the video en­ter­tain­ment com­pany in the Top40. Most com­ments have been neg­a­tive about Mul­ti­Choice, but it re­mains dom­i­nant in South Africa and the rest of the con­ti­nent. Sure, Net­flix is win­ning the stream­ing war, but Mul­ti­Choice has Show­max, ex­ist­ing clients and, of course, all the sport. It is likely Mul­ti­Choice will ex­pand its stream­ing of­fer­ing and con­tinue to make de­cent prof­its – prof­its that it can now use in­ter­nally in­stead of go­ing to par­ent Naspers.

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