DSTV owner MultiChoice has warned investors to brace themselves ahead of an underwhelming earnings report that will mirror the company’s growth within the next six months.
The company informed shareholders that it expects a net loss in the report, which it will publicise on Thursday.
MultiChoice is expecting a net loss in its earnings per share. Its EPS for the last six months, comprising April to September, stood at R3.17, but the media giant expects its new EPS for the next six months to be between R3.71 and R3.87 lower. Which will present it with a loss of R0.54 or R0.64 in the EPS.
The company however expects trading profit to rise between 0% and 5% higher than the R6 billion recorded last year.
In a statement, MultiChoice said, “The board considers trading profit and core headline earnings per share as the two most appropriate indicators of the operating performance of the group, as they adjust for non-recurring and non-operational items.”
MultiChoice blamed the strengthening dollar and rising cost in broadcast leases as primary reasons that drove up cost, although it expected these to be of temporal nature.
“This is further impacted by an increase in foreign exchange losses associated with the repatriation of cash from Nigeria at the parallel rate,” the company said.
MultiChoice shares which it listed on the JSE (Johannesburg Stock Exchange) – Africa’s largest exchange – were 0.57% lower than it was the day before.
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