MultiChoice | Africa turning
MultiChoice delivered commendable results in a challenging SA and African consumer environment. A 47% y/y decrease in the Rest of Africa trading losses and deceleration of the reduction in the South African premium subscriber base to -2.9% y/y (FY'19: c.-5.3% y/y) illustrated a deliverance on our investment case for a return to profits in Africa and a stable SA business. Following the results, we upgraded our FY'20 core HEPS estimate by 10% to ZAR7.44 and downgraded our FY'21 estimate by 2% to R8.82. We expect affordability shaping demand with five-year revenue CAGR of 6% to deliver a 11% trading profit CAGR over the same period due to operating leverage created by MultiChoice's fixed cost base (>80% of costs).
Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.
Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.
Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.
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