On Tuesday, I talked about the payTV company, MultiChoice. Even though their half year 2020 results were not due until Thursday, the company was confident that it had crossed last year’s profit margins by 45%.
Now the numbers are in and we can cross check those early expectations against the actual results.
Before we get into the highlights, the first thing that jumps out is that MultiChoice crossed the 20 million subscriber milestone for the first time ever.
Not bad for a company that a lot of people said would lose subscribers to Netflix.
Wild right? Of the 20.1 million subscribers, 43% (8.7 million) are in South Africa while 57% (11.4million) are in what the company calls the “Rest of Africa.”
Surprise surprise: Despite having the largest section of its population in the rest of Africa category, MultiChoice’s revenues are still mainly from its South African business.
Revenue from South Africa = $1 billion.
Revenue from the Rest of Africa = $558 million
- Revenue increased 2% to $1.7 billion
- Group trading profit rose 36% to $365 million
- MultiChoice’s Rest of Africa business continues to suffer with losses of $19 million
- The company is buying a 20% shareholding in BetKing, a pan-African sports betting group
My thoughts: As MultiChoice remains unprofitable in the rest of Africa, it may not be far-fetched that it could sell that part of its business to Canal Groupe, the French payTv company that now owns 12% of its shares.
Go Deeper: MultiChoice Group’s HY 2020 report.