MultiChoice turns up core earnings

Africa’s biggest pay-TV group, MultiChoice, has reported higher core earnings, as it added new subscribers and narrowed losses in the rest-of-Africa operations.

Africa’s biggest pay–TV group, MultiChoice, reported higher core earnings on Monday, as it added new subscribers and narrowed losses in the rest-ofAfrica operations.

The DStv operator has been struggling to make profits in its operations elsewhere in Africa, where weakening currencies have increased the cost of bringing international content, which is paid for in dollars.

The company has been investing in cheaper local content to attract more subscribers in the middle and mass market, in a bid to boost the bottom line.

MultiChoice said core headline earnings rose 24% to R1.9bn in the six months ended September. Its operations in the rest of Africa, where its television content reaches about 11million households, narrowed trading losses by 47% to R800m, thanks partly to cost cuts and subscriber fees.

“We are pleased with our solid financial performance and our ability to navigate a very challenging economic climate,” said CEO Calvo Mawela.

The company said its customer numbers rose 7% to nearly 19-million after it froze prices for its premium packages to defend its market share in an increasingly competitive market where US streaming giant Netflix is making inroads.

Despite slow internet speeds and relatively high data prices, Netflix has been slowly gaining momentum in the continent.

But Mawela is hopeful a blend of Hollywood blockbusters and local production will set it apart from the US rival.

“We remain focused on ramping up our investment in local content and expanding our over-the-top offering,” Mawela said, referring to television content provided via high-speed internet connection.

MultiChoice runs streaming service Showmax, as well as DStv Now, an app that allows MultiChoice users to live-stream its channels.