Multichoice Africa DTH reaches 1 million subscribers in 3Q09

Thursday, November 26th, 2009 
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SOUTH AFRICA — Naspers Limited (JSE: NPN)(LSE:NPSN) today announced results for the six months ended 30 September 2009.

Pay television

Sub-Saharan Africa: Mobile TV deployed in Kenya, Nigeria, Ghana and Namibia; South Africa: DTT migration and Mobile TV – awaiting regulations

The pay-television segment proved resilient in tough economic conditions. Revenue increased by 15% to R8bn, largely by growth of 352,000 gross subscribers for the six-month period. Operating margins held despite cost pressures from growing the subscriber base and increased sports content costs. SuperSport is now the largest funder of sport in Africa.

In South Africa (MultiChoice/DStv) the base grew by 238,000 gross to 2,639,000 households. Decoders were subsidised and lower-priced tiers promoted in the emerging market. The Compact bouquet delivered growth of 132,000 gross subscribers. Advertising revenues, however, decreased in line with consumer spending.

In the rest of sub-Saharan Africa (Multichoice Africa) our base grew by 114,000 gross to 1,030,000 homes. The lower-priced Compact/Family bouquets now reach 391,000 homes. Several competitors are active in the market. Operating results from the sub-Saharan business were affected by a strong rand and a devaluation of the naira in Nigeria.

Gross Subscribers (‘000):

                       Mar 08  Sept 08   Mar 09  Sept 09
                      -------  -------  -------  -------
South Africa            1,948    2,106    2,401    2,639
Sub-Saharan Africa        686      829      918    1,030

PVR penetration:

                      Sept 08  Sept 09
                      -------  -------
South Africa              14%      13%
Sub-Saharan Africa         5%       6%

Technology (Irdeto)

Irdeto shipped 7.6m units in 1H FY10 (8.3m 1H FY09)

Generally, orders from existing conditional access clients held up. However, new sales slowed and client projects were slow, with India and Africa exceptions. The consolidation of technology assets reduced costs. As a consequence, whilst revenues were down, operating performance improved.

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