South African-based satellite television service provider,
MultiChoice, reported loss-making for the year ended 31 March 2024 after
incurring a net loss of 4.1 billion rand, ($225.8 million at current
exchange rate).The company recorded loss for the second year running,
its audited accounts released on Wednesday showed.
The latest loss
compares to a loss after tax of 2.9 billion rands recorded in the
corresponding period 2023 and was driven by net foreign exchange
translation losses of 6 billion rands.The substantial net foreign
exchange translation losses resulted from losses on “USD-denominated
non-quasi equity loans between MultiChoice Africa Holdings B.V. and
MultiChoice Nigeria Limited,” the company said.“This follows the
depreciation of the NGN against the USD from a closing rate of NGN464.50
in FY23 to NGN1 308.00 in FY24,” it added.According to the income
statement, revenue dropped 5.9 per cent to 55 billion rands due to a
slide in subscription fees, MultiChoice’s primary income source.The
subscriber base fell by 9 per cent owing to a 13 per cent drop in
subscription rate outside its base in South Africa, a business unit the
company often refers to as “Rest of Africa.”
MultiChoice noted that
Nigeria, Zambia, and Angola were the most affected, while South African
businesses were more resilient, posting a 5 per cent decline.Loss before
taxation stood at 706 million rands compared to a pre-tax profit of 921
million rands a year earlier.
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