Bright future despite criticism
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.