Wrap Text
Summarised consolidated financial results for the year ended 31 March 2019
MULTICHOICE GROUP LIMITED
(formerly MultiChoice Group Proprietary Limited and K2018473845 (South Africa) Proprietary Limited)
(incorporated in the Republic of South Africa)
(Registration number: 2018/473845/06)
JSE Share Code: MCG ISIN: ZAE000265971
("MultiChoice" or "the Company" or "the group")
SUMMARISED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2019
EXECUTIVE REVIEW OF OUR PERFORMANCE
MultiChoice Group (MCG or the group) delivered solid results for the year ended 31 March 2019.
A total of 1.6m subscribers were added across the continent, representing 12% year-on-year (YoY) growth, taking the
overall active subscriber base to 15.1m subscribers. This was achieved despite continued macroeconomic headwinds and
consumer affordability pressure, illustrating the resilience of our products. The year also marks the first time
that the Rest of Africa (RoA) base of 7.7m subscribers exceeded the 7.4m subscribers in South Africa.
The group generated revenue of R50.1bn, up 6% on last year (6% organic). Subscription revenue amounted to R41.2bn, up
7% on last year (8% organic). This represents an acceleration in growth from previous years driven by the continued
success of our value strategy in the RoA and a healthy contribution from South Africa.
Group trading profit rose 11% to R7bn (27% organic) benefiting from a R0.9bn reduction in losses in RoA. As part of
the group's cost optimisation programme, a further R1.3bn in costs were removed from the base during the year. This
resulted in overall costs being contained to an increase of 5% (2% organic) and achieved the group target of keeping
the rate of growth in costs below the rate of growth in revenue.
The group continued its investment in local content adding a further 4 600 hours to take the local content library to
nearly 50 000 hours. The spend on local general entertainment content as a percentage of total general entertainment
content increased from 38% to 40%, in line with the strategy to reach a target of 45%.
Core headline earnings, the board's measure of sustainable business performance, was up 10% on last year at R1.8bn.
Consolidated free cash flow of R3.3bn was up 96% compared to the prior year. This was achieved after an improvement in
the trading result from the RoA, the non-recurrence of once-off content prepayments in the prior year and remittances
of cash from Angola.
Capital expenditure of R1bn was slightly up YoY due to additional investments in information technology infrastructure
to improve customer experience as well as the renewal of our digital terrestrial television (DTT) licence in Nigeria.
The cash conversion ratio (EBITDA-Capex/EBITDA) remains positive at 90%.
As one of the largest taxpayers in Africa, MCG paid direct cash taxes of R3.7bn, in line with the previous year.
Net interest paid amounted to R305m, an increase of R152m from the previous year. This was due to an increase in the
interest-bearing loan funding received from Naspers in the RoA segment which was capitalised as part of the unbundling.
The group balance sheet is strong with R9.8bn in net assets, including R6.7bn of cash and cash equivalents and
R3.5bn in undrawn facilities providing R10.2bn in financial flexibility to fund our business plan.
Segmental review
South Africa
The South African business delivered subscriber growth of 8% YoY or 0.5m subscribers and generated revenues of
R33.7bn, up 3% (4% organic) from the prior year. This was on the back of healthy subscriber growth in the mass market
and despite absorbing a 1% increase in value-added tax by not passing it on to customers. The Premium segment remained
under pressure as consumers were impacted by rising fuel and other costs and we competed for share of wallet. ARPU
declined from R335 to R322 due to the ongoing change in subscriber mix towards the mass market. Trading profit was
in line with the prior year at R10.2bn, while the trading margin remained relatively stable at 30%.
The segment continued to drive product enhancements by expanding the content offering in some of its bouquets and
adding JOOX, a music streaming service, to its platform. Sustained efforts to grow the digital offering through
Connected Video and position the business for the future, saw good uptake of both the Showmax and DStv Now services.
As a result, online subscribers doubled YoY.
Rest of Africa
The Rest of Africa (RoA) business continued to build on the success of its value strategy by growing the subscriber
base 17% YoY or 1.1m subscribers. The Fifa World Cup resonated extremely positively with our customers and we used
the event to drive uptake of our products on both the satellite and digital terrestrial platforms.
The strong subscriber growth translated into revenue growth of 13% (13% organic) to R14.8bn, while trading losses
reduced 19% (41% organic) or R0.9bn (R1.9bn organic) to R3.7bn. Encouragingly, average revenue per user (ARPU) in
the RoA has stabilised at R159 (FY2018: R160). This is despite the macroeconomic environment that remained
challenging with material currency depreciation in the Angolan kwanza (60%), Zambian kwacha (17%) and the
Ghanaian cedi (11%).
To solidify our position in the Angolan market, we converted the Angolan operation from an agency to a subsidiary,
which has been fully consolidated, from 1 February 2019.
Cash balances and trade receivables of R298m held in Angola and Zimbabwe that remain exposed to weakening currencies,
have reduced 80% compared to last year's balance. Liquidity constraints in Angola improved considerably in FY2019,
leaving a closing cash position of R168m as at 31 March 2019.
Technology segment
The Technology segment delivered steady results and contributed R1.6bn in revenues and R0.6bn in trading profit.
Despite the impact of non-recurring projects, which generated revenues in the prior year, tight cost controls
resulted in trading profits increasing 18% (21% organic) YoY.
Irdeto had some key customer wins in FY2019, including Tata Sky and Bharti Airtel in India. It continues to invest
in connected industries, a market which is showing great promise, and that should start contributing more
meaningfully to group revenues in the medium term.
Empowerment transaction
The group remains fully committed to broad-based black economic empowerment and transformation. To reinforce this,
on 4 March 2019, the date of the group unbundling from Naspers Limited, the group allocated, for no consideration,
an additional 5% stake in the MultiChoice South Africa group to Phuthuma Nathi, our black economic empowerment
scheme. The value of this 5% has been calculated at R1.9bn, after the impact of the non-controlling interest,
which has an adverse impact on earnings and headline earnings per share of 438 SA cents.
Prospects
In the year ahead, the group will continue scaling its video-entertainment services across the continent, mainly in
the middle and mass markets. Top-line volume growth combined with inflationary price increases and a focus on cost
containment is expected to deliver a continued reduction in trading losses in the RoA and stable margins in South Africa
and the Technology segment. Innovation is core to our future, and we will continue to drive the adoption of online
products (particularly in South Africa).
Dividend
As set out in the pre-listing statement no dividend is being declared for FY2019. The group remains on track to
declare a dividend of R2.5bn, or 569 SA cents per share, for FY2020.
Directorate
On 14 May 2019, Ms Christine Sabwa was appointed to the board as an independent non-executive director. Over the past
21 years, she gained experience in audit, accounting, special investigations, revenue assurance, risk management,
banking, governance and digital finance.
No other changes have been made to the directorate of the group since the publishing of the pre-listing statement on
21 January 2019.
Group company secretary
On 1 April 2019, Mrs R J Gabriels relinquished her secretarial duties as acting group company secretary for
MultiChoice Group Limited. Ms D M Dickson was subsequently appointed as the group company secretary on 1 April 2019
by the board.
Preparation of the summarised consolidated financial results
The preparation of the summarised consolidated financial results was supervised by the group's chief financial
officer, Mr Tim Jacobs CA(SA). These results were made public on 18 June 2019.
We operate in 50 countries, resulting in significant exposure to foreign exchange volatility. This can have a notable
impact on reported revenue and trading profit metrics, particularly in the RoA where revenues are earned in local
currencies while the cost base is largely US dollar denominated.
Where relevant in this report, amounts and percentages have been adjusted for the effects of foreign currency and
acquisitions and disposals to reflect underlying trends. These adjustments (non-IFRS performance measures) are quoted in
brackets as organic, after the equivalent metrics reported under International Financial Reporting Standards (IFRS). A
reconciliation of non-IFRS performance measures (core headline earnings and free cash flow) to the equivalent IFRS metrics
is provided in note 11 of these summarised consolidated financial results. These non-IFRS performance measures constitute
pro forma financial information in terms of the JSE Listings Requirements.
The company's external auditor has not reviewed or reported on forecasts included in these summarised consolidated
financial results.
On behalf of the board
Imtiaz Patel Calvo Mawela
Chair Chief executive
SUMMARISED CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH
2019 2018 %
Notes R'm R'm change
Revenue 2 50 095 47 452 6
Cost of providing services and sale of goods (29 203) (27 588)
Selling, general and administration expenses (13 496) (13 058)
Other operating losses - net (33) (425)
Operating profit 7 363 6 381 15
Interest income 4 910 699
Interest expense 4 (1 437) (1 548)
Net foreign exchange translation (losses)/gains 4 (1 492) 699
Empowerment transaction 6 (2 564) -
Share of equity-accounted results (171) (97)
Other (losses)/gains - net (112) 113
Profit before taxation 5 2 497 6 247 (60)
Taxation (3 773) (3 709)
(Loss)/profit for the year (1 276) 2 538 <(100)
Attributable to:
Equity holders of the group (1 644) 1 456
Non-controlling interests 368 1 082
(1 276) 2 538
Basic and diluted headline (loss)/earnings for the year (R'm) 3 (1 550) 1 797 <(100)
Basic and diluted headline (loss)/earnings per
ordinary share (SA cents) 3 (353) 410 <(100)
Basic and diluted (loss)/earnings for the year (R'm) (1 644) 1 456 <(100)
Basic and diluted (loss)/earnings per ordinary share (SA cents) (374) 332 <(100)
Net number of ordinary shares issued (million) 439 439
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH
2019 2018
R'm R'm
(Loss)/profit for the year (1 276) 2 538
Total other comprehensive income, net of tax, for the year: (5 365) 4 147
Exchange (loss)/gain arising on translation of foreign operations(1)* (6 181) 4 607
Fair-value gains/(losses) on investments held at fair value 50 (47)
Net movement in hedging reserve* 1 326 (565)
Net tax effect of movements in hedging reserve* (560) 152
Total comprehensive (loss)/income for the year (6 641) 6 685
Attributable to:
Equity holders of the group (6 722) 5 077
Non-controlling interests 81 1 608
(6 641) 6 685
(1) Relates to translation of foreign currency Rest of Africa and Technology businesses. The movement relates
mainly to the net liability position of these businesses and the rand depreciation from a closing rate of
R11.84 in FY2018 to R14.50 in FY2019. This movement is recognised in other reserves on the summarised
consolidated statement of changes in equity.
* These components of other comprehensive income may subsequently be reclassified to the summarised
consolidated income statement during future reporting periods.
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH
Non-
Share Other Retained controlling Total
capital(1) reserves(2) earnings interests equity
R'm R'm R'm R'm R'm
Balance at 1 April 2017 - (9 721) (3 157) (1 037) (13 915)
Profit for the year - - 1 456 1 082 2 538
Other comprehensive income - 3 621 - 526 4 147
Total comprehensive income for the year - 3 621 1 456 1 608 6 685
Share-based compensation movement - - 75 - 75
Transactions with non-controlling shareholders - - 76 (79) (3)
Foreign exchange movements on equity reserves - (1 056) - (443) (1 499)
Contribution from parent(3) - - 9 409 - 9 409
Dividends declared - - (5 353) (1 392) (6 745)
Balance at 1 April 2018 - (7 156) 2 506 (1 343) (5 993)
Change in accounting policy (note 1) - - 17 18 35
Restated balance at - (7 156) 2 523 (1 325) (5 958)
1 April 2018
Loss for the year - - (1 644) 368 (1 276)
Other comprehensive income - (5 078) - (287) (5 365)
Total comprehensive loss for the year - (5 078) (1 644) 81 (6 641)
Share-based compensation movement(4) - - 3 246 60 3 306
Transactions with non-controlling shareholders - - (218) 19 (199)
Foreign exchange movements on equity reserves - (211) - (115) (326)
Contribution from parent(5) - - 26 356 - 26 356
Dividends declared(6) - - (5 280) (1 463) (6 743)
Balance at 31 March 2019 - (12 445) 24 983 (2 743) 9 795
(1) Upon unbundling from Naspers Limited on 4 March 2019, 438 837 468 ordinary shares were issued at nominal value.
(2) Other reserves include the hedging reserve, fair-value reserve and foreign currency translation reserve.
(3) Relates primarily to related party loan waivers between the group and Naspers Limited group companies.
This includes a loan waiver of R7bn from Buscapé Company Limited (a Naspers group company).
(4) Includes empowerment transaction of R2.6bn (refer to note 6).
(5) Relates to contribution of businesses and the capitalisation of loans as part of the unbundling from Naspers
Limited (refer to note 9).
(6) Relates to dividends paid by companies in the group to previous legal owners. Non-controlling interest relates
to dividends paid primarily to Phuthuma Nathi.
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH
2019 2018
Notes R'm R'm
ASSETS
Non-current assets 23 684 24 101
Property, plant and equipment 17 279 17 585
Goodwill and other intangible assets 4 283 4 190
Investments and loans 238 123
Amounts due from related parties 9 180 1 191
Derivative financial instruments 282 -
Deferred taxation 1 422 1 012
Current assets 17 319 14 477
Inventory 924 461
Programme and film rights 5 133 4 910
Trade and other receivables 4 095 4 827
Amounts due from related parties 9 - 139
Derivative financial instruments 444 96
Cash and cash equivalents 6 723 4 044
Total assets 41 003 38 578
EQUITY AND LIABILITIES
Equity reserves attributable to the group's equity holders 12 538 (4 650)
Share capital - -
Other reserves (12 445) (7 156)
Retained earnings 24 983 2 506
Non-controlling interests (2 743) (1 343)
Total equity 9 795 (5 993)
Non-current liabilities 15 186 28 526
Capitalised finance leases 14 441 12 784
Long-term loans and other liabilities 59 189
Amounts due to related parties 9 134 15 000
Derivative financial instruments 4 404
Deferred taxation 548 149
Current liabilities 16 022 16 045
Capitalised finance leases 1 290 819
Programme and film rights 2 493 2 206
Provisions 136 169
Accrued expenses and other current liabilities 11 885 11 430
Amounts due to related parties 9 - 316
Derivative financial instruments 218 1 105
Total equity and liabilities 41 003 38 578
Net asset value per ordinary share (SA cents) 2 231 (1 365)
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH
2019 2018
R'm R'm
Cash flows from operating activities
Cash generated from operating activities 9 449 7 243
Interest income received 368 582
Interest costs paid (673) (734)
Taxation paid (3 694) (3 664)
Net cash generated from operating activities 5 450 3 427
Cash flows from investing activities
Property, plant and equipment acquired - net (761) (543)
Intangible assets acquired - net (217) (216)
Loans to related parties* (27 726) (27 937)
Repayment of loans by related parties* 28 590 27 510
Acquisitions of subsidiaries and businesses, net of cash acquired (8) (114)
Disposals of subsidiaries and businesses - 141
Net cash utilised in investing activities (122) (1 159)
Cash flows from financing activities
Proceeds from long- and short-term loans raised 1 755 1 541
Repayments of long- and short-term loans (1 813) (1 509)
Proceeds from related party funding** 4 573 6 607
Repayment of related party funding** (196) (3 207)
Repayments of capitalised finance lease liabilities (879) (776)
Repayments of capital contribution from parent (20) (26)
Transactions with non-controlling interest*** (85) -
Dividends paid**** (5 261) (5 336)
Dividends paid by subsidiaries to non-controlling shareholders (1 463) (1 421)
Net cash utilised in financing activities (3 389) (4 127)
Net movement in cash and cash equivalents 1 939 (1 859)
Foreign exchange translation adjustments on cash and cash equivalents 740 (642)
Cash and cash equivalents at the beginning of the year 4 044 6 545
Cash and cash equivalents at the end of the year 6 723 4 044
* Relates to gross inflows and outflows into the Naspers Limited group cash pool which was started at
the end of FY2017 to improve cash yield in the group. The cash pool with Naspers Limited ended in
February 2019.
** Relates to the gross funding inflows and outflows received from Naspers Limited up until February 2019.
*** During the year ended 31 March 2019, MultiChoice Africa Holdings B.V. increased their controlling interest
in MultiChoice Uganda Limited and MultiChoice Tanzania Limited by 20% and 25% respectively for a purchase
consideration of R85m.
**** Relates to dividends paid by companies in the group to previous legal owners.
SEGMENTAL REVIEW FOR THE YEAR ENDED 31 MARCH
2019 2018
Inter- Inter-
External segmental Total External segmental Total
Revenue R'm R'm R'm R'm R'm R'm
South Africa 33 696 6 605 40 301 32 702 7 398 40 100
Rest of Africa 14 836 250 15 086 13 106 686 13 792
Technology 1 563 1 721 3 284 1 644 1 361 3 005
Eliminations - (8 576) (8 576) - (9 445) (9 445)
50 095 - 50 095 47 452 - 47 452
EBITDA Trading profit
2019 2018 2019 2018
R'm R'm R'm R'm
South Africa 12 101 12 355 10 199 10 446
Rest of Africa (2 428) (3 315) (3 735) (4 591)
Technology 617 533 550 466
Eliminations - - - -
10 290 9 573 7 014 6 321
Reconciliation of consolidated trading profit to consolidated operating profit
Trading profit as presented in the segment disclosure is the chief operating decision maker (CODM) and
management's measure of each segment's operational performance. A reconciliation of the segmental trading profit
to operating profit as reported in the income statement is provided below:
2019 2018
R'm R'm
Consolidated trading profit 7 014 6 321
Lease interest on capitalised transponder leases 650 648
Amortisation of intangibles (other than software) (79) (71)
Other operating losses - net (33) (425)
Equity-settled share-based compensation (189) (87)
Early settlement gains - (5)
Operating profit per the income statement* 7 363 6 381
* The summarised consolidated income statement discloses all reporting items from consolidated operating
profit to consolidated profit before taxation.
NOTES TO THE SUMMARISED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH
1. Basis of preparation and accounting policies
Background information
MultiChoice Group Limited (formerly MultiChoice Group Proprietary Limited and K2018473845 (South Africa)
Proprietary Limited) was incorporated on 4 September 2018, as a wholly owned subsidiary of the Naspers
Limited Group (Naspers).
On 28 September 2018, MultiChoice Group Limited (the company) received a parent company contribution from
Naspers of MultiChoice South Africa Holdings (Pty) Ltd group, MultiChoice Africa Holdings B.V. group,
Irdeto Holdings B.V. group and the Showmax B.V. group. This resulted in the formation of the MultiChoice
Group (MCG or the group).
On 27 February 2019 the group was listed on the Johannesburg Stock Exchange (JSE) and on 4 March 2019
was unbundled from Naspers to its shareholders as a dividend in specie. Up until this date the results
of the group were consolidated within Naspers as part of the video-entertainment segment.
The year ended 31 March 2019 is the first financial year the group will present summarised consolidated
financial results.
Presentation of summarised consolidated financial results
Although there was a change in the legal ownership of the underlying subsidiaries, the previous shareholder,
Naspers, retained control of the company and its newly contributed subsidiaries both before and after the
time of the creation of the new group (the Restructuring). The Restructuring is a business combination
under common control as defined by IFRS 3 Business Combinations. Although IFRS 3 defines a business
combination under common control, IFRS 3 does not provide any guidance on accounting for these types
of business combinations. Therefore management has developed an accounting policy to present the results
and financial position of the group, including the comparatives, at 31 March 2019 as follows:
- The summarised consolidated financial results have been prepared on the basis that the entities have
always been consolidated and therefore the comparative information incorporates the results, assets,
liabilities and disclosures of all entities that form part of the group.
- The summarised consolidated financial results was prepared as a combination of the historic financial
information recognised in the Naspers consolidated financial statements related to the group; no new
goodwill was recognised (predecessor accounting).
- Contribution from parent - As a result of applying predecessor accounting, the contribution from Naspers
was recognised at the carrying value of the net assets contributed to the company at the earliest
comparative period presented in the summarised consolidated financial results. On unbundling from
Naspers this has subsequently been converted to the retained earnings of the group and has been
renamed as such for all periods presented.
- Intercompany - Transactions and balances with Naspers Limited and Naspers group companies have been
disclosed as related party transactions and balances up until the date of unbundling. Thereafter these
have been reflected as third-party transactions and balances.
The measurement and recognition policies applied in the preparation of the summarised consolidated financial
results are consistent with those applied in the combined historical financial information that was included
in the pre-listing statement published on 21 January 2019.
The summarised consolidated financial results for the year ended 31 March 2019 are prepared in accordance
with the JSE Limited (JSE) Listings Requirements (the JSE Listings Requirements) relevant to summarised
financial statements and the provisions of the Companies Act No 71 of 2008. The JSE Listings Requirements
require provisional reports to be prepared in accordance with the framework concepts, the measurement and
recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial
Reporting Standards Council, and to also, as a minimum, contain the information required by IAS 34 Interim
Financial Reporting. The summarised consolidated financial results do not include all the disclosures required
for complete consolidated annual financial statements prepared in accordance with IFRS as issued by the
International Accounting Standards Board (IASB). The accounting policies applied in the preparation of the
consolidated annual financial statements from which the summarised consolidated financial results were
derived, are consistent with those applied in previous financial years, except as set out below.
The group has adopted all new and amended accounting pronouncements issued by the IASB that are effective
for financial years commencing 1 April 2018. None of the new or amended accounting pronouncements that are
effective for the financial year commencing 1 April 2018 had a material impact on the group.
The group's reportable segments reflect the components of the group that are regularly reviewed by the
chief executive officer and other senior executives who make strategic decisions.
Trading profit excludes the amortisation of intangible assets (other than software), but includes the
finance cost on transponder leases, while trading profit and EBITDA (earnings before interest, taxation,
depreciation and amortisation) exclude impairment of assets, equity-settled share-based payment expenses
and other gains/losses.
The group adopted the following new accounting pronouncements, set out below, during the current period.
Pronouncements adopted with adjustments to the opening balance of retained earnings
Accounting pronouncement Adoption impact
IFRS 9 Financial Instruments (IFRS 9). The group has applied IFRS 9 from
IFRS 9 replaces the previous financial 1 April 2018 and elected not to restate
instrument recognition and measurement comparatives on transition. The impact of
guidance applied by the group as adoption has been recognised as an
contained in IAS 39 Financial Instruments: adjustment to the opening balance of
Recognition and Measurement. retained earnings as at 1 April 2018. The
only significant impact of adoption was an
increase in impairment allowances on trade
receivables due to the IFRS 9 requirement to
consider forward-looking information when
determining expected credit losses. The
cumulative net impact of adopting IFRS 9
was an increase of R170m in expected
credit losses on trade receivables and a
corresponding decrease of R157m in
retained earnings and R13m in non-
controlling interests. Principles of IFRS 9
hedge accounting have been applied by
the group.
IFRS 15 Revenue from Contracts with The group has applied IFRS 15 on a
Customers (IFRS 15). retrospective basis hence the impact is
IFRS 15 replaces the previous revenue included in the comparative information
recognition guidance applied by the group contained in the summarised consolidated
as contained in IAS 18 Revenue. financial results. The application of IFRS 15
did not have a significant impact on the
group's results or financial position. The only
impact from the adoption of IFRS 15 was the
reclassification from set-top box revenue to
installation revenue amounting to R308m in
the prior year.
IFRIC 22 Foreign Currency Transactions The group has applied IFRIC 22 on a
and Advance Consideration (IFRIC 22). prospective basis, with the impact of
IFRIC 22 clarifies that non-monetary assets adoption recognised as an adjustment to
and liabilities arising from the payment/ the opening balance of retained earnings as
receipt of advance consideration (eg at 1 April 2018. The impact of adoption was
prepaid expenses and deferred revenue) an increase in prepaid expenses of R205m,
are not retranslated to the entity's functional and a corresponding increase of R174m in
currency after initial recognition. retained earnings and R31m in non-
controlling interests.
Adjustments to the opening balances of the statement of financial position (extract)
As at 1 April
2018
Change in 2018
2018 accounting Previously
Restated policy(1) reported
R'm R'm R'm
ASSETS
Non-current assets 24 101 - 24 101
Current assets (subtotal) 14 512 35 14 477
Programme and film rights 5 115 205 4 910
Trade and other receivables 4 657 (170) 4 827
TOTAL ASSETS 38 613 35 38 578
EQUITY AND LIABILITIES
Equity reserves attributable to the Group's equity holders (4 633) 17 (4 650)
Other reserves (7 156) - (7 156)
Retained earnings 2 523 17 2 506
Non-controlling interests (1 325) 18 (1 343)
TOTAL EQUITY (5 958) 35 (5 993)
Non-current liabilities 28 526 - 28 526
Current liabilities 16 045 - 16 045
TOTAL EQUITY AND LIABILITIES 38 613 35 38 578
(1) Represents the impacts of adopting IFRS 9 Financial Instruments and IFRIC 22 Foreign Currency
Transactions and Advance Consideration as of 1 April 2018.
2019 2018
R'm R'm
2. Revenue
Subscription fees 41 248 38 547
Advertising 3 180 3 092
Set-top boxes 2 042 1 847
Installation fees 123 308
Technology contracts and licensing 1 564 1 639
Other revenue* 1 938 2 019
50 095 47 452
* Other revenue primarily includes sub-licensing and production revenue.
The following table shows unsatisfied performance obligations resulting from long-term technology
contracts as at 31 March 2019.
Aggregate amount of the transaction price allocated to long-term
technology contracts that are partially or fully unsatisfied 350 *
* As permitted under the transitional provision in IFRS 15, the transaction price allocated to unsatisfied
performance obligations as of 31 March 2018 is not disclosed.
Management expects that 35% of the transaction price allocated to the unsatisfied contracts as of
31 March 2019 will be recognised as revenue during the next reporting period (R123m) and 31% (R109m)
will be recognised as revenue in the FY2021 reporting period. The remaining 34% (R118m) will be recognised
as revenue in FY2022 and thereafter. The amount disclosed above does not include variable consideration
which is constrained.
All other technology contracts are for periods of one year or less or are billed based on time incurred.
2019 2018
R'm R'm
3. Headline (loss)/earnings
Net (loss)/profit attributable to shareholders (1 644) 1 456
Adjusted for:
- Impairment of property, plant and equipment and other assets 4 426
- Impairment of other intangible assets 44 -
- Loss/(profit) on sale of assets 17 (7)
- Profit on disposal of investments - (96)
- Other impairments 41 11
(1 538) 1 790
Total tax effects of adjustments (12) 7
Headline (loss)/earnings (1 550) 1 797
2019 2018
R'm R'm
4. Interest (expense)/income
Interest expense
Loans and overdrafts (485) (704)
Transponder leases (650) (648)
Other (302) (196)
(1 437) (1 548)
Interest income
Loans and bank accounts 335 322
Other 575 377
910 699
A significant portion of the group's operations are exposed to foreign exchange risk. The table below
presents the net (loss) or profit from our foreign exchange exposure and incorporates effects of qualifying
forward exchange contracts that hedge this risk.
Net (loss)/profit from foreign exchange translation and fair-value
adjustments on derivative financial instruments
On translation of liabilities (11) (75)
On translation of transponder leases* (1 887) 1 150
On translation of forward exchange contracts 406 (376)
Net foreign exchange translation (losses)/gains (1 492) 699
* Movement relates to rand depreciation from a closing rate of R11.84 in FY2018 to R14.50 in FY2019 on
our US dollar transponder lease liability.
5. Profit before taxation
In addition to the items already detailed, profit before taxation has been determined after taking
into account, inter alia, the following:
2019 2018
R'm R'm
Depreciation of property, plant and equipment 2 400 2 407
Amortisation 305 268
- software 226 197
- other intangible assets 79 71
Net realisable value adjustments on inventory, net of reversals* 275 483
Other operating losses - net (33) (425)
- (loss)/gain on sale of property, plant and equipment and intangible assets (17) 9
- impairment of other assets (30) (341)
- impairment of property, plant and equipment (5) (111)
- dividend received 19 18
Other (losses)/gains - net (112) 113
- profit on sale of investments - 113
- loss on acquisition of assets and liabilities (112) -
* Net realisable value adjustments relate primarily to set-top box subsidies in South Africa and Rest
of Africa segments.
6. Empowerment transaction
On 4 March 2019, the date of the group unbundling from Naspers Limited, the group allocated, for no
consideration, an additional 5% stake in MultiChoice South Africa Holdings Proprietary Limited (MCSA)
to Phuthuma Nathi Investments (RF) Limited and Phuthuma Nathi Investments 2 (RF) Limited (collectively
Phuthuma Nathi). In terms of IFRS 2 Share-based payments, this transaction is treated as an equity-settled
share-based payment. The value of the 5% allocated to Phuthuma Nathi shareholders has been calculated at
R2.6bn which has been included in the summarised consolidated income statement and in retained earnings
in the summarised consolidated statement of changes in equity.
After the allocation to the non-controlling interest, the transaction had an adverse impact on earnings
and headline earnings of R1.9bn or 438 SA cents per share.
The transaction also caused the group's effective tax rate to increase by 76%. Overall, the group's
effective tax rate increased from 59% in FY2018 to 151% in FY2019.
7. Commitments and contingent liabilities
Commitments relate to amounts for which the group has contracted, but that have not yet been recognised
as obligations in the summarised consolidated statement of financial position.
2019 2018
R'm R'm
Commitments 38 813 38 030
- capital expenditure 68 107
- programme and film rights 33 376 33 474
- set-top boxes 2 049 2 164
- other 2 032 1 012
- operating leases 1 288 1 273
The group operates a number of businesses in jurisdictions where taxes may be payable on certain
transactions or payments. The group continues to seek relevant advice and works with its advisers
to identify and quantify such tax exposures. Our current assessment of possible withholding and other
tax exposures, including interest and potential penalties, amounts to approximately R1.8bn (2018: R1.7bn).
No provision has been made as at 31 March 2019 and 2018 for these possible exposures.
8. Financial instruments
The group's activities expose it to a variety of financial risks such as market risk (including currency
risk, fair-value interest rate risk, cash flow interest rate risk and price risk), credit risk and
liquidity risk.
The summarised consolidated financial results do not include all financial risk management information
and disclosures required in the consolidated annual financial statements and should be read in conjunction
with the consolidated annual financial statements for the year ended 31 March 2019.
The fair values of the group's financial instruments that are measured at fair value are
categorised as follows:
Fair value Fair value Level in
2019 2018 Valuation fair-value
Financial instrument R'm R'm method hierarchy
Financial assets
Investments held at 155 105 Quoted prices in a Level 1
fair value through other public market
comprehensive income
Forward exchange 643 76 Fair value using Level 2
contracts forward exchange
rates that are
publicly available
Currency depreciation 83 20 The fair value is Level 3
features calculated based on
the LIBOR rate of
2.48%
Financial liabilities
Forward exchange 15 - Fair value using Level 1
contracts forward exchange
rates that are
publicly available
Forward exchange 207 1 509 Fair-value using Level 2
contracts forward exchange
rates that are
publicly available
Currency depreciation features relate to clauses in content acquisition agreements that provide
the group with protection in the event of significant depreciations of the purchasing entity's
functional currency relative to the currency of the content acquisition agreement. The fair value
of currency depreciation features is measured through the use of discounted cash flow techniques.
Key inputs used in measuring fair value include the terms and benchmark rates contained in content
acquisition agreements and spot exchange rates prevailing at the relevant measurement dates.
The group discloses the fair values of the following financial instruments as their carrying
values differ from their fair values:
Carrying Carrying
value Fair value value Fair value
2019 2019 2018 2018
Financial instrument R'm R'm R'm R'm
Capitalised finance leases (level 3) 15 731 15 727 13 603 13 212
Level 3 - the fair values of all level 3 disclosures have been determined through the use of discounted
cash flow analyses. Key inputs include current market interest rates as well as contractual cash flows.
9. Related party transactions and balances
The group entered into various related party transactions in the ordinary course of business. In total
the contribution from Naspers Limited through the contribution of businesses (R3bn) and the capitalisation
of loans (R23bn) as part of the unbundling amounted to R26bn.
Apart from the above there have been no significant changes in related party transactions and balances
in the current financial year.
10. Events after the reporting period
There have been no events noted, that occurred after the reporting date, that could have a material impact
on the summarised consolidated financial results.
INDEPENDENT AUDITOR'S REPORT
Independent auditor's report on the summarised consolidated financial statements
To the shareholders of MultiChoice Group Limited
Opinion
The summarised consolidated financial statements of MultiChoice Group Limited, contained in the accompanying
provisional report, which comprise the summarised consolidated statement of financial position as at
31 March 2019, the summarised consolidated income statement, summarised consolidated statements of comprehensive
income, changes in equity and cash flows for the year then ended, and related notes, are derived from the
audited consolidated financial statements of MultiChoice Group Limited for the year ended 31 March 2019.
In our opinion, the accompanying summarised consolidated financial statements are consistent, in all material
respects, with the audited consolidated financial statements, in accordance with the requirements of the JSE
Limited Listings Requirements for provisional reports, as set out in note 1 to the summarised consolidated
financial statements, and the requirements of the Companies Act of South Africa as applicable to summary
financial statements.
Summarised consolidated financial statements
The summarised consolidated financial statements do not contain all the disclosures required by International
Financial Reporting Standards and the requirements of the Companies Act of South Africa as applicable to annual
financial statements. Reading the summarised consolidated financial statements and the auditor's report thereon,
therefore, is not a substitute for reading the audited consolidated financial statements and the auditor's
report thereon.
The audited consolidated financial statements and our report thereon
We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated
14 June 2019. That report also includes communication of key audit matters. Key audit matters are those matters
that, in our professional judgement, were of most significance in our audit of the consolidated financial
statements of the current period.
Directors' responsibility for the summarised consolidated financial statements
The directors are responsible for the preparation of the summarised consolidated financial statements in accordance
with the requirements of the JSE Limited Listings Requirements for provisional reports, set out in note 1 to the
summarised consolidated financial statements, and the requirements of the Companies Act of South Africa as applicable
to summarised financial statements.
Auditor's responsibility
Our responsibility is to express an opinion on whether the summarised consolidated financial statements are
consistent, in all material respects, with the audited consolidated financial statements based on our procedures,
which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), Engagements to
Report on Summary Financial Statements.
PricewaterhouseCoopers Inc.
Director: B S Humphreys
Registered auditor
Johannesburg
14 June 2019
11. Non-IFRS performance measures
The group has presented certain revenue, cost and trading profit metrics in constant currency, excluding
the effects of changes in the composition of the group (non-IFRS performance measures) in the following
tables. The non-IFRS performance measures are the responsibility of the board of directors and is presented
for illustrative purposes. Information presented on a non-IFRS basis has been extracted from the group's
management accounts, the quality of which the board is satisfied with.
Shareholders are advised that, due to the nature of the non-IFRS performance measures and the fact that
it has been extracted from the group's management accounts, it may not fairly present the group's
financial position, changes in equity, results of operations or cash flows.
The non-IFRS performance measures have been prepared to illustrate the impact of changes in foreign exchange
rates and changes in the composition of the group on its results for the period ended 31 March 2019. The
following methodology was applied in calculating the non-IFRS performance measures:
1. Foreign exchange/constant currency adjustments have been calculated by adjusting the current period's
results to the prior period's average foreign exchange rates, determined as the average of the monthly
exchange rates for that period. The constant currency results, arrived at using the methodology outlined
above are compared to the prior period's actual IFRS results. The relevant average exchange rates
(relative to the South African rand) used for the group's most significant functional currencies,
were US dollar (2019: 13.82; 2018: 12.91); Nigerian naira (2019: 26.28; 2018: 27.87); Angolan kwanza
(2019: 20.54; 2018: 13.86); Kenyan shilling (2019: 7.33; 2018: 7.99) and Zambian kwacha
(2019: 0.81; 2018: 0.74).
2. Adjustments made for changes in the composition of the group (or M&A) relate to acquisitions and
disposals of subsidiaries. For mergers, the group composition adjustments include a portion of the
prior year results of the entity with which the merger took place. The following significant changes
in the composition of the group during the respective reporting periods have been adjusted for in
arriving at the non-IFRS performance measures:
Basis of Reportable Acquisition/
Period Transaction accounting segment disposal
Year ended Disposal of the Subsidiary South Africa Disposal
31 March 2018 group's interest
in MWEB
Year ended Acquisition of the Subsidiary Technology Acquisition
31 March 2018 group's interest
in Denuvo
The net adjustment made for all acquisitions and disposals that took place during the year ended
31 March 2019 amounted to a negative adjustment of R117m on revenue and a positive adjustment of
R11m on trading profit.
An assurance report issued in respect of the non-IFRS performance measures, by the group's
external auditor, is available at the registered office of the company.
The adjustments to the amounts, reported in terms of IFRS that have been made in arriving at the
non-IFRS performance measures are presented in the tables below:
11.1 Key performance indicators
2019
2019 versus
versus 2018
2019 2019 2018 Organic
2018 Currency Organic 2019 Reported growth
Reported impact growth Reported % %
Subscribers ('000s)* 13 476 n/a 1 621 15 097 12 12
South Africa 6 921 n/a 526 7 447 8 8
Rest of Africa 6 555 n/a 1 095 7 650 17 17
ARPU (R)**
Blended 252 - (11) 241 (4) (4)
South Africa 335 - (13) 322 (4) (4)
Rest of Africa 160 (1) - 159 (1) -
90-day-active subscribers ('000s)*** 16 376 n/a 2 203 18 579 13 13
South Africa 7 332 n/a 617 7 949 8 8
Rest of Africa 9 044 n/a 1 586 10 630 18 18
90-day-active ARPU (R)**
Blended 206 - (9) 197 (4) (4)
South Africa 317 - (15) 302 (5) (5)
Rest of Africa 115 (1) - 114 (1) -
* Subscriber numbers are a non-IFRS unaudited operating measure of the actual number of paying
subscribers at 31 March of the respective year, regardless of the type of programming package to
which they subscribe.
** ARPU represents a non-IFRS unaudited operating measure of the average revenue per subscriber (or user)
in the business on a monthly basis. The group calculates ARPU by dividing average monthly subscription
fee revenue for the period (total subscription fee revenue during the period divided by the number of
months in the period) by the average number of subscribers during the period (the number of
subscribers at the beginning of the period plus the number of subscribers at the end of the period,
divided by 2). Subscription fee revenue includes BoxOffice rental income but excludes decoder insurance
premiums and reconnection fees which are disclosed as other revenue in terms of IFRS.
*** All subscribers that have been active in the previous 90 days.
11.2 Group financials including segmental analysis
11.2.1 Segmental results
2019
2019 versus
2019 2019 2019 2019 versus 2018
2018 M&A- Currency Organic 2018 Organic
IFRS related impact growth IFRS IFRS growth
R'm R'm R'm R'm R'm % %
Revenue 47 452 (117) 111 2 649 50 095 6 6
South Africa 32 702 (178) - 1 172 33 696 3 4
Rest of Africa 13 106 - (10) 1 740 14 836 13 13
Technology 1 644 61 121 (263) 1 563 (5) (16)
Trading profit 6 321 11 (1 053) 1 735 7 014 11 27
South Africa 10 446 (12) - (235) 10 199 (2) (2)
Rest of Africa (4 591) - (1 018) 1 874 (3 735) 19 41
Technology 466 23 (35) 96 550 18 21
11.2.2 Revenue and costs by nature
Revenue 47 452 (117) 111 2 649 50 095 6 6
Subscription fees 38 547 (178) (45) 2 924 41 248 7 8
Advertising 3 092 - 16 72 3 180 3 2
Set-top boxes 1 847 - 6 189 2 042 11 10
Technology contracts
and licensing 1 639 61 119 (255) 1 564 (5) (16)
Other revenue 2 327 - 15 (281) 2 061 (11) (12)
Operating expenses 41 131 (128) 1 164 914 43 081 5 2
Content 16 793 - 471 451 17 715 5 3
Set-top box purchases 5 435 - 142 479 6 056 11 9
Staff costs 5 454 7 120 (40) 5 541 2 (1)
Sales and marketing 1 944 (6) 45 484 2 467 27 25
Transponder costs 2 626 - 76 (95) 2 607 (1) (4)
Other 8 879 (129) 310 (365) 8 695 (2) (4)
11.3 Reconciliation of headline earnings to core headline earnings
Core headline earnings excludes non-recurring and non-operating items - we believe this is a useful
measure of the group's sustainable operating performance. However, core headline earnings is not a
defined term under IFRS and may not be comparable with similarly titled measures reported by
other companies.
2019 2018 %
R'm R'm change
Basic and diluted headline (loss)/earnings (1 550) 1 797
attributable to shareholders (IFRS)
Adjusted for (after tax effects and non-controlling interests):
- equity-settled share-based payment expenses 265 68
- empowerment transaction 1 923 -
- amortisation of other intangible assets 55 45
- foreign currency losses and fair-value adjustments 1 434 409
- realised losses on foreign exchange contracts (564) (691)
- non-recurring current and deferred taxation impacts - 8
- acquisition-related costs 237 5
Core headline earnings 1 800 1 641 10
Core headline earnings per ordinary share (SA cents) 410 374 10
11.4 Reconciliation of cash generated from
operating activities to free cash flow
Cash generated from operating activities 9 449 7 243 31
Adjusted for:
- capitalised finance lease repayments (including interest) (1 529) (1 424)
- net capital expenditure (978) (759)
- interest received - 250
- investment income 19 18
- taxation paid (3 694) (3 664)
Free cash flow 3 267 1 664 96
ASSURANCE ENGAGEMENT REPORT
To the directors of MultiChoice Group Limited
Report on the Assurance Engagement on the Compilation of Pro Forma Financial Information included in the
summarised consolidated financial results
We have completed our assurance engagement to report on the compilation of the pro forma financial information of
MultiChoice Group Limited and its subsidiaries (the 'group') by the directors of MultiChoice Group Limited ('directors').
The pro forma financial information, as set out on pages 21 to 24 of the summarised consolidated financial results,
consists of pro forma financial information for the year ended 31 March 2019 so as to separately present the impact
of foreign currency (to reflect constant currency with the prior year), significant acquisitions, and significant
disposals as at and for the year ended 31 March 2019. It also includes the calculation of core headline earnings
and free cash flow metrics. The applicable criteria on the basis of which the directors have compiled the pro
forma financial information are specified in the JSE Limited (JSE) Listings Requirements and described on
page 21 of the summarised consolidated financial results.
The pro forma financial information has been compiled by the directors to illustrate the impact of foreign currency
by reflecting a constant currency to the prior year and significant acquisitions and disposals during the period (to
reflect results on an organic basis) on certain earnings and cost measures. It also includes core headline earnings
and free cash flow which are metrics management consider useful to understand the sustainable operating performance
of the group. As part of this process, information about the group's financial performance has been extracted by
the directors from the group's consolidated financial statements for the year ended 31 March 2019, on which an
audit report has been published.
Directors' responsibility
The directors of the group are responsible for compiling the pro forma financial information on the basis of the
applicable criteria specified in the JSE Listings Requirements and described on page 21 of the summarised consolidated
financial results.
Our independence and quality control
We have complied with the independence and other ethical requirements of the Code of Professional Conduct for
Registered Auditors issued by the Independent Regulatory Board for Auditors (IRBA Code), which is founded on fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.
The IRBA Code is consistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional
Accountants (Part A and B).
The firm applies International Standard on Quality Control 1 and, accordingly, maintains a comprehensive system of
quality control including documented policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Reporting accountant's responsibility
Our responsibility is to express an opinion about whether the pro forma financial information has been compiled,
in all material respects, by the directors on the basis of the applicable criteria specified in the JSE Listings
Requirements and described on page 21 of the summarised consolidated financial results based on our procedures
performed.
We conducted our engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3420,
Assurance Engagements to Report on the Compilation of Pro Forma Financial Information as issued by the International
Auditing and Assurance Standards Board. This standard requires that we plan and perform our procedures to obtain
reasonable assurance about whether the pro forma financial information has been compiled, in all material respects,
on the basis specified in the JSE Listings Requirements.
For purposes of this engagement, we are not responsible for updating or reissuing any reports or opinions on any
financial information used in compiling the pro forma financial information, nor have we, in the course of this
engagement, performed an audit or review of the financial information used in compiling the pro forma financial
information.
The purpose of pro forma financial information is solely to provide users with relevant information and measures
used by the group to assess performance and to illustrate the impact of foreign currency movements and significant
acquisitions and disposals on the company's unadjusted financial information as if the event had occurred or the
transaction had been undertaken at an earlier date selected for purposes of the illustration. Accordingly, we do
not provide any assurance that the actual outcome of the event or transaction would have been as presented.
A reasonable assurance engagement to report on whether the pro forma financial information has been compiled, in
all material respects, on the basis of the applicable criteria involves performing procedures to assess whether the
applicable criteria used by the directors in the compilation of the pro forma financial information provide a
reasonable basis for presenting the significant effects directly attributable to the event or transaction, and
to obtain sufficient appropriate evidence about whether:
- The related pro forma adjustments give appropriate effect to those criteria; and
- The pro forma financial information reflects the proper application of those adjustments to the unadjusted
financial information.
The procedures selected depend on our judgement, having regard to our understanding of the nature of the company,
the event or transaction in respect of which the pro forma financial information has been compiled, and other
relevant engagement circumstances.
Our engagement also involves evaluating the overall presentation of the pro forma financial information.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the pro forma financial information has been compiled, in all material respects, on the basis of
the applicable criteria specified by the JSE Listings Requirements and described on page 21 of the summarised
consolidated financial results.
PricewaterhouseCoopers Inc.
Director: B S Humphreys
Registered auditor
Johannesburg
14 June 2019
ADMINISTRATION AND CORPORATE INFORMATION
Company secretary
Donna Dickson
MultiChoice City
144 Bram Fischer Drive
Randburg 2194
South Africa
cosec@multichoice.com
Tel: +27 (0)11 289 6604
Fax: +27 (0)11 289 3026
Registered office
MultiChoice City
144 Bram Fischer Drive
Randburg 2194
South Africa
PO Box 1502
Randburg 2125
South Africa
Tel: +27 (0)11 289 6604
Fax: +27 (0)11 289 3026
Auditor
PricewaterhouseCoopers Inc.
Transfer secretaries
Singular Systems Proprietary Limited
(Registration number: 2002/001492/07)
PO Box 785261
Sandton 2146
South Africa
Tel: +27 0860 116 226
Fax: +27 (0)11 321 5637
ADR programme
The Bank of New York Mellon
Shareholder Relations Department
Global BuyDIRECT(SM)
462 South 4th Street, Suite 1600, Louisville, KY 40202
United States of America
(PO Box 505000, Louisville, KY 40233-5000)
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
(Registration number: 1929/001225/06)
PO Box 786273
Sandton 2146
South Africa
Tel: +27 (0)11 282 8000
Attorneys
Webber Wentzel
90 Rivonia Road
PO Box 91771
Marshalltown
Johannesburg 2107
South Africa
Tel: +27 (0)11 530 5000
Investor relations
Meloy Horn
InvestorRelations@multichoice.com
Tel: +27 (0)11 289 3320
Fax: +27 (0)11 289 3026
Randburg
18 June 2019
Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited)
Important notice
Shareholders should take note that, pursuant to a provision of the MultiChoice memorandum of incorporation,
MultiChoice is permitted to reduce the voting rights of shares in MultiChoice (including MultiChoice shares
deposited in terms of the American Depositary Share ("ADS") facility) so that the aggregate voting power of
MultiChoice shares that are presumptively owned or held by foreigners to South Africa (as envisaged in the
MultiChoice memorandum of incorporation) will not exceed 20% of the total voting power in MultiChoice. This
is to ensure compliance with certain statutory requirements applicable to South Africa. For this purpose
MultiChoice will presume in particular that:
- all MultiChoice shares deposited in terms of the MultiChoice ADS facility are owned or held by foreigners
to South Africa, regardless of the actual nationality of the MultiChoice ADS holder; and
- all shareholders with an address outside of South Africa on the register of MultiChoice will be deemed
to be foreigners to South Africa, irrespective of their actual nationality or domicilium, unless such
shareholder can provide proof, to the satisfaction of the MultiChoice board, that it should not be deemed
to be a foreigner to South Africa, as envisaged in article 40.1.3 of the MultiChoice memorandum of
incorporation.
Shareholders are referred to the provisions of the MultiChoice memorandum of incorporation available at
www.multichoice.com for further detail. If shareholders are in any doubt as to what action to take, they
should seek advice from their broker, attorney or other professional adviser.
www.multichoice.com
Date: 18/06/2019 03:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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