• Monday, April 22, 2024
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BusinessDay

Naira’s plunge results in third-straight loss for MultiChoice

MultiChoice launched a new channel on DStv

MultiChoice Group Ltd. reported its third straight semi-annual loss citing foreign-exchange woes in Nigeria and incessant blackouts in South Africa.

Africa’s biggest pay-TV company posted a net loss of 1.32 billion rand ($72.4 million) for the six months to Sept. 30, MultiChoice said in a filing on Wednesday.

Nigeria allowed its currency to trade more freely against the dollar in mid-June, spurring a 40% devaluation. That forced the company to revalue inter-group loans resulting in foreign-exchange losses. Rolling blackouts in South Africa led to a 5% decline in the number of active days per subscriber adding to the company’s distress.

The company’s shares fell 0.6% in Johannesburg at close on Wednesday after plunging as much as 3.6% to a record.

MultiChoice plans a relaunch its Showmax streaming service in the second half of its financial year and a sports betting service in South Africa following the success of a similar offering in Nigeria.