Netflix and other streaming video providers can be a long-term threat to MultiChoice, but the Pay Television trader does not see too much of a challenge, but analyzes the latest financial details of parents Naspers suggests.
Naspers developed in the meeting of # 39; six months to September 30, 2018, on Friday that his video business (read: MultiChoice) has subsidized his subscription with 400,000 families in comparison with a year ago.
The video entertainment segment now has 13.9 million subscribers.
Revenue increased by 3% (7% in constant currency) to US $ 1.8 billion, while trading profits fell 6% to $ 211 million.
"The value-added strategy, which is aimed at increasing the subscription base and cost reductions, has spared $ 15 million in cost," said the media and Internet group. The South Africa video clip gave "solid trading profits and made sincere cash plans."
Growth subsidy has been strongly influenced by mid-income and mass-market terms. There was, however, "chewing" in the premium segment. Naspers has set this a fight on disposable income and made no reference to the competition of Netflix's love.
The continuous change in subscription provided reduced an average revenue per user by $ 27 a year ago to $ 25, while consumer favored bouquets complained about DStv Premium.
Rest of the region
In sub-Saharan Africa, outside South Africa, the growth of subscribers was saved and the company brought 9% (16%) growth of revenues to $ 524 million. Dealing losses were stable, with a loss of loss in local currency. This improvement would be stronger if it was not a promo for Fifa World Cup, Naspers said.
Results were involved by the 42% of the devaluation of # 39; The Angolan Quanza since January 2018. Despite the economic and currency volatility, attempts are made to recover these operations to profitability.
"The FIFA World Cup has set an important opportunity to increase growth in significant investments in content and request for accommodations (mainly through set-top cash subsidies). This investment in the revenue period will reduce the comparison of & # 39; a year ends and improves operational performance, especially in sub-Saharan Africa, "said Naspers. "Customers who are added to this promotion will contribute to second half of revenue and profitability, far-reaching annual improvements." – © 2018 NewsCentral Media
This article was originally published on TechCentral.