MultiChoice Group CEO Calvo Mawela

MultiChoice Group has reported a 14% improvement in trading profit to R8-billion for the year ended 31 March 2020, despite a tough economic environment and the growing threat of Netflix and other streaming video providers.

Core headline earnings rose by 38% to R2.5-billion, while free cash flow was up 59% to R5.2-billion, leaving the group, which owns DStv, SuperSport, Showmax and Irdeto, with R9.1-billion of cash on its balance sheet at year-end.

It also executed about R1.7-billion worth of share buybacks during the financial year

CEO Calvo Mawela said in a statement that the group’s strong balance sheet “positions us well to weather the uncertainties in our markets”.

The South African business delivered subscriber growth of 6% year on year.

Trading profit in South Africa increased by only 1%, to R10.3-billion, due to modest revenue growth and the cost impact of broadcasting three major sporting events in the reporting period.