Multichoice expects 20% profit bump

07 Nov, 2019 - 22:11 0 Views
Multichoice expects 20% profit bump

The Chronicle

Multichoice expects to report headline earnings growth of between 20% to 25% for the six months to end-September.

Trading profit is expected to be between 20% (R800m) and 25% (R1bn) higher than the prior year’s R3.9bn.

“The improved financial performance expected for the current period is despite continued macro-economic headwinds faced across the continent, which are impacting disposable income at a consumer level. Management has remained focused on tight cost controls to offset these challenges and continued to reduce losses in the rest of Africa segment, which has been the largest contributor to the improvement in group performance,” the group said in a statement.

Multichoice also benefited from a lower depreciation of the rand against the US dollar compared to the prior period which has led to a decrease in unrealised foreign exchange losses.

Its results will be released on November 11th.

After being unbundled out of Naspers, Multichoice was listed on the JSE in February. Its share price was up since listing, and gained another half a percent yesterday.

Meanwhile, The JSE retreated on Thursday as it went against the tide in other major global indices.

Although modest, there was broad-based weakness recorded across most sectors on the JSE.

This contrasted with earlier trends in Asia where the Hang Seng closed 0.57% firmer, while the Nikkei and Shanghai Composite Index inched up 0.11% and 0.18% respectively. Stocks in Europe traded mostly firmer.

In the US the tech-heavy Nasdaq opened slightly weaker, while the S&P 500 and Dow Jones opened flat.

Global sentiment was being driven by news that China had agreed with the US to roll back tariffs on each other’s goods in phases. This is, however, dependent on the progress made in the agreement, which is still to be cast in stone, despite hints that a finality might only be reached in December.

Locally, Statistics SA released South Africa’s manufacturing production data for the month of September. Manufacturing production year-on-year contracted by 2.4% from a prior contraction of 1.5%, while manufacturing production month-on-month was also recorded at -2.4% from a prior expansion of 1.3%.

There was further disappointment via the SACCI Business Confidence indicator, which fell 91.7 from a prior recording of 92.4.

On the local bourse, losses were led by cement maker PPC Limited [JSE:PPC] which fell following a gloomy half-year trading statement. The stock fell 12.31% to close at R3.42.

Nampak [JSE:NPK] continues to struggle and on Thursday lost another 3.38% to close at R7.43. Other significant losses on the day were recorded for Anglo American Platinum [JSE:AMS] which lost 2.27% to close at R1 151.36, and Discovery [JSE:DSY] which closed at R128.74 after losing 2.05%.

Arrowhead Properties [JSE:AHB] found momentum towards the close as it surged 7% to close at R3.67. Dis-Chem Pharmacies [JSE:DCP] had a volatile session following the release of its half-year results, as it slumped briefly after the open before rebounding to eventually close 5.21% firmer at R25.25.

The JSE All-Share index eventually closed 0.41% softer while the JSE Top-40 index shed 0.36%. Industrials dropped 0.48%, resources lost 0.53% and the financials index shed a more modest 0.18%.

The rand found momentum as the greenback slipped against a basket of major currencies. 

The rand was trading 0.42% firmer at R14.73/$ at 17:00 CAT.

Brent crude found its footing again following heavy declines in the prior session. 

It was recorded trading 1.25% firmer at $62.53/barrel just after the JSE close.

At 17:00 CAT, platinum was up 0.21% at $931.60/Oz, palladium was 0.72% firmer at $1 806.00/Oz, and gold was down 0.43% at $1 483.92/Oz. – Fin24.

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