Interim Report MultiChoice South Africa Holdings …...Sport fans were treated to world-class...
1
www.multichoice.co.za The reviewed results of the MultiChoice South Africa group for the six months ended 30 September 2012 are summarised as follows: • The group increased consolidated revenues by 16% over the past six months. Trading profit grew by 19% to R3,8bn. • The pay-television subscriber base grew by 187 000 over the six-month period and now totals 4,2 million households. The mid-priced Compact bouquet delivered the bulk of the growth with 163 000 households being added over the period. The popular personal video recorder (PVR) decoder recorded growth of 90 000 with the cumulative base now at 747 000 households. • Operating margins remain stable despite cost pressures from growing the subscriber base, investing in new technologies and increased programming costs. Core headline earnings increased by 27% to R2,7bn. • This earnings performance delivered positive free cash flows of R2,1bn. • The group paid a normal dividend of R2bn and a special once-off dividend of R3bn to ordinary shareholders on 12 September 2012. The DStv satellite service was successfully migrated to the new IntelSat-20 satellite, providing additional capacity which allows for expansion in the range of services we can offer to subscribers. Several new channels, aimed at improving our viewer’s experience, were added to the DStv bouquets. This included the addition of eight HD channels bringing to 14 the total number of HD channels on the DStv Premium bouquet. M-Net replaced its M-NetMovies 1 and M-NetMovies 2 offering and expanded it to six genre movie channels; M-NetMovies Premiere, M-NetMovies Action Plus, M-NetMovies Family, M-NetMovies Comedy, M-NetMovies Drama and Romance and M-NetMovies Showcase, with scheduling that allows for more choice and variety to cater for every taste. All these movie channels are available in HD. M-Net once again broadcast the reality shows Idols and Big Brother Africa, and premiered the very successful local edition of MasterChef. The eighth season of Idols broke all previous viewership and voting records to make this season the most popular ever. Mzansi Magic, the channel that showcases local South African talent, continues to gain popularity and viewership. The Africa Magic channels in South Africa have been expanded from two to four, namely Africa Magic Entertainment, Africa Magic Family, Africa Magic Movies and Africa Magic Movies 1. Sport fans were treated to world-class coverage of major events, including EURO 2012, the London Olympics and Paralympics, ICC T20 World Cup and the Castle Rugby Championship. SuperSport’s production of the 2012 Olympic Games attracted unprecedented viewership and ratings, and was showcased on two HD channels specifically launched for the games. SuperSport recently concluded an agreement with the English Premier League, securing the rights to broadcast the EPL for a further three seasons. The BoxOffice service, where PVR subscribers can rent the latest blockbuster movies instantaneously, continues to grow with average monthly movie rentals of more than 400 000. The BoxOffice service was recently made available online to internet users. The DStv Mobile service was enhanced with the launch of new devices such as the iDrifta (for Apple products) and the new 7-inch Walka (portable TV). The trading platform for Phuthuma Nathi and Phuthuma Nathi 2, the BEE share schemes, was successfully launched and to date over 23 000 deals representing a volume of over 11,5 million shares have been concluded. We are delighted that over 89% of our shareholders have held their shares. BASIS OF PRESENTATION Accounting policies used for the interim results are consistent with those applied in the previous financial statements and with IFRS. Core headline earnings exclude once-off and non-operating items. We believe it is a useful measure of the group’s sustainable operating performance. However, it is not a defined term under IFRS and may not be comparable with similarly titled measures reported by other companies. On behalf of the board: Nolo Letele Imtiaz Patel Chairman Chief executive Randburg 28 November 2012 Directors F L N Letele (chairman), J P Bekker, S Dakile-Hlongwane D G Eriksson, K D Moroka, S J Z Pacak, M I Patel F G Sampson, K B Sibiya, J J Volkwyn, T Vosloo. Company secretary Gillian Kisbey-Green Registered office 251 Oak Avenue, Randburg 2194 (PO Box 1502, Randburg 2125) Transfer secretaries Link Market Services South Africa (Pty) Limited 13th Floor, Rennie House 19 Ameshoff Street, Braamfontein 2001 (PO Box 4844, Johannesburg 2000) Six months ended Year ended 30 September 31 March 2012 2011 2012 Consolidated statement Reviewed Reviewed Audited of profit or loss R’m R’m R’m Revenue 11 445 9 889 20 484 Cost of providing services and sale of goods (5 303) (4 598) (9 675) Selling, general and administration expenses (2 427) (2 165) (4 929) Other (losses)/gains (20) – 4 Operating profit 3 695 3 126 5 884 Interest received 59 108 145 Interest paid (63) (52) (153) Other finance (costs)/income (28) 19 (74) Share of equity-accounted results 2 – (1) Profit before taxation 3 665 3 201 5 801 Taxation (1 032) (897) (1 639) Profit for the period 2 633 2 304 4 162 Attributable to: Equity holders of the group 2 636 2 306 4 168 Non-controlling interest (3) (2) (6) 2 633 2 304 4 162 Core headline earnings for the period 2 728 2 148 4 308 Headline earnings for the period 2 650 2 306 4 192 Six months ended Year ended 30 September 31 March Reconciliation of 2012 2011 2012 operating profit to Reviewed Reviewed Audited trading profit R’m R’m R’m Operating profit 3 695 3 126 5 884 Finance cost on transponder leases (7) (6) (1) Amortisation of intangible assets 42 43 100 Other losses/(gains) 20 – (4) Trading profit 3 750 3 163 5 979 Six months ended Year ended Condensed 30 September 31 March consolidated statement 2012 2011 2012 of comprehensive income Reviewed Reviewed Audited and changes in equity R’m R’m R’m Balance at beginning of the period 7 092 8 490 8 490 Profit for the period 2 636 2 306 4 168 Total other comprehensive income, net of tax, for the period 171 446 428 Translation of foreign operations 1 26 – Cash flow hedges 65 619 457 Revaluations of investments 124 (19) 99 Tax on other comprehensive income (19) (180) (128) Changes in other reserves Movement in share-based compensation reserve 8 6 12 Dividends paid to shareholders (5 000) (6 000) (6 000) Changes in non-controlling interest Total comprehensive income for the period (3) (2) (6) Balance at end of the period 4 904 5 246 7 092 As at As at 30 September 31 March Condensed 2012 2011 2012 consolidated statement Reviewed Reviewed Audited of financial position R’m R’m R’m ASSETS Non-current assets* 10 363 6 889 7 140 Current assets 7 380 6 159 5 442 Total assets 17 743 13 048 12 582 EQUITY AND LIABILITIES Capital and reserves 4 904 5 246 7 092 Non-current liabilities* 3 125 181 246 Current liabilities 9 714 7 621 5 244 Total equity and liabilities 17 743 13 048 12 582 *Includes capitalisation of new IS20 satellite Six months ended Year ended 30 September 31 March 2012 2011 2012 Condensed consolidated Reviewed Reviewed Audited statement of cash flows R’m R’m R’m Cash flow generated from operating activities 2 596 2 196 5 026 Cash flow utilised in investing activities (331) (271) (858) Cash flow utilised in financing activities (2 167) (4 075) (6 178) Net movement in cash and cash equivalents 98 (2 150) (2 010) Foreign exchange translation adjustments (36) 24 6 Cash and cash equivalents at beginning of the period 1 251 3 255 3 255 Cash and cash equivalents at end of the period 1 313 1 129 1 251 Six months ended Year ended 30 September 31 March 2012 2011 2012 Calculation of headline and Reviewed Reviewed Audited core headline earnings R’m R’m R’m Net profit attributable to shareholders 2 636 2 306 4 168 Adjusted for: – loss on sale of property, plant and equipment 3 3 34 – impairment of property, plant and equipment 26 – – – (profit)/loss on sale of intangible assets (6) – 8 2 659 2 309 4 210 Total tax effects of adjustments (6) (1) (12) Total adjustment for non-controlling interest (3) (2) (6) Headline earnings 2 650 2 306 4 192 Adjusted for: – amortisation of intangible assets 24 25 58 – foreign exchange losses/(gains) 54 (183) 58 Core headline earnings 2 728 2 148 4 308 No of shares (’000) 337 500 337 500 337 500 MultiChoice South Africa Holdings (Pty) Limited (Registration number: 2006/015293/07) (“MultiChoice” or “the group”) for the six months ended 30 September 2012 Interim Report
Transcript of Interim Report MultiChoice South Africa Holdings …...Sport fans were treated to world-class...
www.multichoice.co.za
The reviewed results of the MultiChoice South Africa group for the six months ended 30 September 2012
are summarised as follows:
• The group increased consolidated revenues by 16% over the past six months. Trading profit grew
by 19% to R3,8bn.
• The pay-television subscriber base grew by 187 000 over the six-month period and now totals
4,2 million households. The mid-priced Compact bouquet delivered the bulk of the growth with
163 000 households being added over the period. The popular personal video recorder (PVR)
decoder recorded growth of 90 000 with the cumulative base now at 747 000 households.
• Operating margins remain stable despite cost pressures from growing the subscriber base,
investing in new technologies and increased programming costs. Core headline earnings
increased by 27% to R2,7bn.
• This earnings performance delivered positive free cash flows of R2,1bn.
• The group paid a normal dividend of R2bn and a special once-off dividend of R3bn to ordinary
shareholders on 12 September 2012.
The DStv satellite service was successfully migrated to the new IntelSat-20 satellite, providing
additional capacity which allows for expansion in the range of services we can offer to subscribers.
Several new channels, aimed at improving our viewer’s experience, were added to the DStv bouquets.
This included the addition of eight HD channels bringing to 14 the total number of HD channels on
the DStv Premium bouquet.
M-Net replaced its M-NetMovies 1 and M-NetMovies 2 offering and expanded it to six genre movie
channels; M-NetMovies Premiere, M-NetMovies Action Plus, M-NetMovies Family, M-NetMovies
Comedy, M-NetMovies Drama and Romance and M-NetMovies Showcase, with scheduling that allows
for more choice and variety to cater for every taste. All these movie channels are available in HD.
M-Net once again broadcast the reality shows Idols and Big Brother Africa, and premiered the very
successful local edition of MasterChef. The eighth season of Idols broke all previous viewership
and voting records to make this season the most popular ever. Mzansi Magic, the channel that
showcases local South African talent, continues to gain popularity and viewership. The Africa Magic
channels in South Africa have been expanded from two to four, namely Africa Magic Entertainment,
Africa Magic Family, Africa Magic Movies and Africa Magic Movies 1.
Sport fans were treated to world-class coverage of major events, including EURO 2012, the London
Olympics and Paralympics, ICC T20 World Cup and the Castle Rugby Championship. SuperSport’s
production of the 2012 Olympic Games attracted unprecedented viewership and ratings, and was
showcased on two HD channels specifically launched for the games. SuperSport recently concluded
an agreement with the English Premier League, securing the rights to broadcast the EPL for a
further three seasons.
The BoxOffice service, where PVR subscribers can rent the latest blockbuster movies instantaneously,
continues to grow with average monthly movie rentals of more than 400 000. The BoxOffice service
was recently made available online to internet users.
The DStv Mobile service was enhanced with the launch of new devices such as the iDrifta (for Apple
products) and the new 7-inch Walka (portable TV).
The trading platform for Phuthuma Nathi and Phuthuma Nathi 2, the BEE share schemes, was
successfully launched and to date over 23 000 deals representing a volume of over 11,5 million
shares have been concluded. We are delighted that over 89% of our shareholders have held their
shares.
BASIS OF PRESENTATION
Accounting policies used for the interim results are consistent with those applied in the previous
financial statements and with IFRS.
Core headline earnings exclude once-off and non-operating items. We believe it is a useful measure
of the group’s sustainable operating performance. However, it is not a defined term under IFRS and
may not be comparable with similarly titled measures reported by other companies.
On behalf of the board:
Nolo Letele Imtiaz Patel
Chairman Chief executive
Randburg
28 November 2012
Directors
F L N Letele (chairman), J P Bekker, S Dakile-Hlongwane
D G Eriksson, K D Moroka, S J Z Pacak, M I Patel
F G Sampson, K B Sibiya, J J Volkwyn, T Vosloo.
Company secretary
Gillian Kisbey-Green
Registered office
251 Oak Avenue, Randburg 2194
(PO Box 1502, Randburg 2125)
Transfer secretaries
Link Market Services South Africa (Pty) Limited
13th Floor, Rennie House
19 Ameshoff Street, Braamfontein 2001
(PO Box 4844, Johannesburg 2000)
Six months ended Year ended30 September 31 March
2012 2011 2012
Consolidated statement Reviewed Reviewed Audited
of profit or loss R’m R’m R’m
Revenue 11 445 9 889 20 484Cost of providing services and sale of goods (5 303) (4 598) (9 675)Selling, general and administration expenses (2 427) (2 165) (4 929)Other (losses)/gains (20) – 4
Operating profit 3 695 3 126 5 884Interest received 59 108 145Interest paid (63) (52) (153)Other finance (costs)/income (28) 19 (74)Share of equity-accounted results 2 – (1)
Profit before taxation 3 665 3 201 5 801Taxation (1 032) (897) (1 639)
Profit for the period 2 633 2 304 4 162
Attributable to:Equity holders of the group 2 636 2 306 4 168Non-controlling interest (3) (2) (6)
2 633 2 304 4 162
Core headline earnings for the period 2 728 2 148 4 308Headline earnings for the period 2 650 2 306 4 192
Six months ended Year ended30 September 31 March
Reconciliation of 2012 2011 2012
operating profit to Reviewed Reviewed Audited
trading profit R’m R’m R’m
Operating profit 3 695 3 126 5 884Finance cost on transponder leases (7) (6) (1)Amortisation of intangible assets 42 43 100Other losses/(gains) 20 – (4)
Trading profit 3 750 3 163 5 979
Six months ended Year ended
Condensed 30 September 31 March
consolidated statement 2012 2011 2012
of comprehensive income Reviewed Reviewed Audited
and changes in equity R’m R’m R’m
Balance at beginning of the period 7 092 8 490 8 490Profit for the period 2 636 2 306 4 168Total other comprehensive income, net of tax, for the period 171 446 428
Translation of foreign operations 1 26 –Cash flow hedges 65 619 457Revaluations of investments 124 (19) 99Tax on other comprehensive income (19) (180) (128)
Changes in other reservesMovement in share-based compensation reserve 8 6 12Dividends paid to shareholders (5 000) (6 000) (6 000)
Changes in non-controlling interestTotal comprehensive income for the period (3) (2) (6)
Balance at end of the period 4 904 5 246 7 092
As at As at30 September 31 March
Condensed 2012 2011 2012
consolidated statement Reviewed Reviewed Audited
of financial position R’m R’m R’m
ASSETSNon-current assets* 10 363 6 889 7 140Current assets 7 380 6 159 5 442
Total assets 17 743 13 048 12 582
EQUITY AND LIABILITIESCapital and reserves 4 904 5 246 7 092Non-current liabilities* 3 125 181 246Current liabilities 9 714 7 621 5 244
Total equity and liabilities 17 743 13 048 12 582
*Includes capitalisation of new IS20 satellite
Six months ended Year ended30 September 31 March
2012 2011 2012
Condensed consolidated Reviewed Reviewed Audited
statement of cash flows R’m R’m R’m
Cash flow generated from operating activities 2 596 2 196 5 026Cash flow utilised in investing activities (331) (271) (858)Cash flow utilised in financing activities (2 167) (4 075) (6 178)
Net movement in cash and cash equivalents 98 (2 150) (2 010)Foreign exchange translation adjustments (36) 24 6Cash and cash equivalents at beginning of the period 1 251 3 255 3 255
Cash and cash equivalents at end of the period 1 313 1 129 1 251
Six months ended Year ended30 September 31 March
2012 2011 2012Calculation of headline and Reviewed Reviewed Auditedcore headline earnings R’m R’m R’m
Net profit attributable to shareholders 2 636 2 306 4 168Adjusted for:– loss on sale of property, plant and equipment 3 3 34– impairment of property, plant and equipment 26 – –– (profit)/loss on sale of intangible assets (6) – 8
2 659 2 309 4 210Total tax effects of adjustments (6) (1) (12)Total adjustment for non-controlling interest (3) (2) (6)
Headline earnings 2 650 2 306 4 192Adjusted for:– amortisation of intangible assets 24 25 58– foreign exchange losses/(gains) 54 (183) 58
Core headline earnings 2 728 2 148 4 308
No of shares (’000) 337 500 337 500 337 500
MultiChoice South Africa Holdings (Pty) Limited(Registration number: 2006/015293/07)
(“MultiChoice” or “the group”)
for the six months ended 30 September 2012
Interim Report
