MultiChoice warns loss will more than double on Showmax spend, foreign exchange
(Gallo Images/Luba Lesolle)
DStv owner MultiChoice warned on Thursday its headline loss will more than double in its year to end to end-March, when it took hefty foreign exchange hits, spent more on Showmax, and grappled with a generally weak consumer environment.
The group said in a trading update that its headline loss per share is expected to worsen by between 136% and 140% from R3.01, or R1.3 billion, in 2023. It was hit by R3.6 billion in losses related to the effects on inter-company loans in its 2024 year, amid a sharp depreciation in the Nigerian naira, and a R1 billion writedown of its IT systems.
The group said it absorbed a total hit of R4.5 billion related to weaker currencies, expecting to report a fall in trading profit of as much as 23% from the R10 billion it reported in 2023. The trading loss of Showmax worsened by R1.4 billion, it said.
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