CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR .
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTSFOR THE PERIOD ENDED 30 SEPTEMBER 2020
OVERVIEWFINANCIAL REVIEW01 Executive review of our performance05060708091012222327ibcConnect with us on:Condensed consolidated income statementCondensed consolidated statement of comprehensive incomeCondensed consolidated statement of financial positionCondensed consolidated statement of changes in equityCondensed consolidated statement of cash flowsSegmental reviewNotes to the condensed consolidated financial statementsIndependent auditor’s reportNon-IFRS performance measuresAssurance engagement reportAdministration and corporate informationENRICHING LIVESWe arecommitted touplifting,supporting, andinvesting inthe communitiesin which weoperateWe entertain,inform andempower thecommunitiesthat inspireand build usin returnMultiChoice Group / Condensed consolidated interim financial statements for the period ended 30 September 2020
EXECUTIVE REVIEW OF OUR PERFORMANCEMultiChoice Group (MCG or the group) delivered resilientresults for the period ended 30 September 2020The group added 1.2m 90-day activesubscribers year on year (YoY) to close theperiod ended 30 September 2020 (1H FY21)on 20.1m households and exceeds the 20msubscriber milestone for the first time. Thisrepresents growth of 6% YoY, similar to the prioryear, as increased consumer demand for videoentertainment services and an easing ofelectricity shortages in southern Africa wereoffset by rising consumer pressure in manymarkets. The 90-day subscriber base is splitbetween 11.4m households (57%) in the Rest ofAfrica and 8.7m (43%) in South Africa.Revenue increased 2% (-1% organic) toZAR26.1bn, with subscription revenues ofZAR22.2bn increasing a solid 5% (3% organic)YoY. Top-line momentum was significantlyimpacted by COVID-19 in the following areas: Advertising revenue declined ZAR0.6bn YoY,mainly due to a lack of sport advertising anda generally softer advertising market as aresult of lower economic activity. This has,however, returned to nearly pre-COVID-19levels in the months of August andSeptember. Commercial subscriptions were ZAR0.3bnlower than the prior period with hotels,restaurants and other commercial customerslargely closed during lockdowns. Althoughbusiness in the hospitality industry hasresumed in recent months, it is expected totake some time to fully normalise.Group trading profit rose 19% to ZAR5.7bn(38% organic), benefitting from a ZAR0.5bn(ZAR1.2bn organic) reduction in losses in theRest of Africa and a resilient performance inSouth Africa. The trading profit impact ofCOVID-19 was largely neutral, as the ZAR0.9bnrevenue loss mentioned above was offset byZAR0.8bn in delayed content costs.A strong focus on cost reduction allowed fora further ZAR1bn in costs being eliminatedfrom the base during the period. Overall costsdecreased 2% compared to the priorperiod (-9% organic) and resulted in the groupmaintaining its target of delivering positiveoperating leverage by keeping the growth ratein costs below that of revenue growth.The group continued its strategic focusof investing in local content and produced1 870 additional hours, despite disruptionscaused by strict early COVID-19 lockdownmeasures. As a result, the total local contentlibrary is now nearing 59 000 hours. Since thestart of the financial year, the group launchednine new channels across sub-Saharan Africa,as well as 13 further channels as part of theEthiopian relaunch strategy, to keep itscustomers entertained, informed and educated.In Nigeria, it recently concluded anothersuccessful season of Big Brother andSouth Africa saw the launch of several localproductions such as Inconceivable, Gomora andLegacy, the renegotiation of two majorinternational content agreements in SouthAfrican Rand (ZAR) and the signing of three newco-productions with global content producers.Core headline earnings, the board’s measure ofsustainable business performance, was up 41%on the prior period at ZAR2.7bn. The strongearnings growth was attributable to theimprovement in trading profit and lower realisedforeign exchange losses.Consolidated free cash flow of ZAR2.1bn wasdown 13% compared to the prior period. Thiswas mainly due to the end of a contractualagreement on the southern Africa transponderlease whereby an upfront prepayment reducedlease payments for the first 36 months of thelease term, together with current period foreignexchange movements (ZAR0.5bn), as well as anincrease in capital expenditure related to amultiyear investment programme to futureproofthe group’s customer service, billing and datacapabilities (ZAR0.4bn).As one of the largest taxpayers in Africa, thegroup paid direct cash taxes of ZAR2.0bn,MultiChoice Group / Condensed consolidated interim financial statements for the period ended 30 September 2020 / 01
EXECUTIVE REVIEW OF OUR PERFORMANCE continuedslightly more than the prior year due to higherprofitability.Net interest paid increased to ZAR252m,primarily as a result of the translation of intereston United States Dollar (USD) transponder leaseliabilities at a weaker ZAR:USD exchange rate.The strength of the balance sheet is criticallyimportant given the uncertain longer-termeconomic impact of COVID-19 and potentialchallenges for certain markets in the Rest ofAfrica as a result of a lower oil price. SomeZAR9.0bn in net assets, including ZAR7.3bn incash and cash equivalents, combined withZAR4.5bn in undrawn facilities, provideZAR11.8bn in financial flexibility to fund thegroup’s operations. This strong financial positionis after ZAR4bn was utilised to settle the MCGand Phuthuma Nathi (PN) dividends inSeptember.SEGMENTAL REVIEWSouth AfricaThe South African business held up well in atough consumer climate, delivering subscribergrowth of 7% YoY or 0.5m subscribers on a90-day active basis. The impact of COVID-19and the associated lockdown saw consumersprioritise video services, but a lack of live sportand the inability of commercial subscribers totrade negatively impacted revenue generation.Revenue declined 3% to ZAR16.5bn due tolower advertising (ZAR0.6bn) and commercialsubscriber revenues (ZAR0.3bn). Excluding theYoY movements on the above revenuecategories which were impacted by COVID-19,revenue growth would have been positive ashealthy subscriber growth in the mass marketand the annual price increases were negated bya lower average Premium subscriber base in theabsence of live sport. The ongoing shift insubscriber mix towards the mass market,combined with the impact on Premium andcommercial subscribers as mentioned, resultedin the monthly average revenue per user (ARPU)declining 5% from ZAR292 to ZAR278.Trading profit increased 12% to ZAR5.8bn. Thishigher profitability can be attributed to adoubling down on the group’s cost optimisationprogramme, the non-recurrence of three majorsporting events expensed in the comparativeprior period, lower operational costs in aCOVID-19 environment and a temporary shift incontent costs as a result of delays in sportingevents.SuperSport had to contend with no live sport formost of 1H FY21 and nimbly adapted bychanging channel line-ups, broadcastingtop-quality documentaries and showcasingblockbuster sporting movies to keep subscribersentertained. Highlights for the interim reportingperiod included renewing the English PremierLeague and UEFA Champions League rights tothe 2024/2025 seasons, enhancing the portfoliowith two ESPN channels and launching arefreshed thematic channel line-up to improvecontent discovery for sport lovers.Connected video users on the DStv Now andShowmax platforms continue to grow as onlineconsumption increases. During the reportingperiod Showmax launched Showmax Pro, thegroup’s first standalone online sport offering.Showmax Pro allows subscribers to watch theirseries, movies, kids and sport content acrossseveral devices, while also offering a mobileoption at a lower price point. During November,the group launched Netflix on its platform andwill be adding another major internationalsubscription video on demand (SVOD) servicesoon.On the product front, numerous innovative andcustomer-centric product launches occurredsince the start of the financial year. The ExploraUltra decoder will allow subscribers toseamlessly shift between satellite and onlineplatforms, with all content aggregation occurringcentrally via one billing platform. DStv Rewardswill leverage the group’s supplier relationships toreward customers based on their behaviours,while DStv Communities will allow collectivepayments to improve active days and retentiononce implemented.Rest of AfricaThe Rest of Africa business grew the 90-dayactive subscriber base by 6% YoY or 0.6msubscribers. The macroeconomic environmentremained challenging with sharp currency02 / MultiChoice Group / Condensed consolidated interim financial statements for the period ended 30 September 2020
EXECUTIVE REVIEW OF OUR PERFORMANCE continueddepreciation and ongoing consumer pressureimpacting reported results. Much needed rainfallreduced electricity shortages in southern Africa,resulting in a recovery of customers in Zambiaand Zimbabwe. However, operations inZimbabwe remain affected by persistenteconomic difficulties. As part of its growthstrategy, the group relaunched its operations inEthiopia in September, with a much strongerlocal offering which includes localised billing,more Amharic content and SuperSport locallanguage commentary.Revenue of ZAR8.7bn represented 11% growthYoY (6% organic). Subscription revenue grew ata similar rate and contributed ZAR8.0bn. ARPUimproved to ZAR118 (1H FY20: ZAR111),supported by the weaker ZAR versus most localcurrencies as well as inflationary price increases.Currency depreciation impacted results morethan in the previous year, mainly due to thematerial depreciation of the Angolan Kwanza(-70%) and the Zambian Kwacha (-45%).Trading losses narrowed by 59% (150% organic)or ZAR0.5bn (ZAR1.2bn organic) to ZAR0.3bn.This represents a 7% improvement in the tradingmargin, driven by a combination of revenuegrowth, effective cost control, content refundsand lower content costs with football leaguesbeing delayed.both traditional video entertainment andconnected industries. Beijing Hyundai, whichnow incorporates Irdeto’s Keystone securitytechnology into all new models, has alreadyshipped 50 000 new vehicles with thistechnology into the market. Irdeto is nowproviding security services to five of the sixlargest global over the top (OTT) players.SHARE TRANSACTIONSIn order to preserve cash reserves, the grouptransferred 3.6m (with a value of ZAR0.3bn onthe date of transfer) of the 10.1m treasuryshares repurchased in the prior year, to fund thecurrent year awards under the group restrictedstock unit (RSU) share plan (this transfer wasbetween two group companies).SUBSEQUENT EVENTSIn order to expand the group’s entertainmentecosystem further, it finalised an investment fora 20% shareholding in BetKing, a pan-Africansports betting group. The transaction price ismade up of an upfront investment of USD81m(ZAR1.3bn), with the potential for a furtherpayment of USD31m (ZAR0.5bn) should certainearn-out targets be met between December2021 and December 2023. As the groupexercises significant influence over BetKing,the business will be equity accounted as anassociate from 1 October 2020.Cash balances of ZAR3.2bn (1H FY20:ZAR1.5bn) held in Nigeria, Angola andZimbabwe remain exposed to weakercurrencies. A large part of the YoY increase canbe attributed to renewed liquidity challenges inNigeria, where the central bank has providedlimited USD liquidity to the market.To improve the group cost of capital andreinforce the statement of financial position, anamortising working capital loan of ZAR1.5bnwas concluded in November 2020. The loan hasa three-year term and bears interest atthree-month JIBAR 1.70%.TECHNOLOGY SEGMENTNo dividend has been declared based on theinterim results.The technology segment, Irdeto, was impactedby the non-recurrence of USD8m in once-offrevenues in the prior period and the deferral ofcertain project revenues due to COVID-19. Itcontributed ZAR0.9bn in revenues, a decreaseof 1% YoY (-17% organic), with the trading profitmargin normalising to 28%.During the reporting period, Irdeto gainedmarket share in providing digital securityservices and won 18 new customers acrossDIVIDENDPROSPECTSThe group’s focus for the full year, subject to astable regulatory environment and potentiallyadverse consequences of COVID-19, will be tocontinue scaling its video entertainment platformacross the continent, focusing on bothtraditional broadcasting and streaming services,and increasing its investment in local content.MultiChoice Group / Condensed consolidated interim financial statements for the period ended 30 September 2020 / 03
EXECUTIVE REVIEW OF OUR PERFORMANCE continuedIt will also look to further expand itsentertainment ecosystem and revenueprospects by offering new products and servicesand by pursuing new growth opportunities. Atthe same time, the group will continue focusingon developing employees and making ameaningful impact on the communities where itoperates.Given the risks associated with a weakmacroeconomic and consumer environment,and the potential COVID-19 fallout, the groupwill be looking to maintain tight cost controls,prioritise cash generation and preserve balancesheet strength.DIRECTORATEMrs RJ Gabriels resigned as interim companysecretary on 11 June 2020 with Ms CC Millerappointed as group company secretary on thesame date.Mr MI Patel, the board chair, was recategorisedas a non-executive director, with effect from1 October 2020.Mr DG Eriksson retired as an independentnon-executive director on 11 June 2020.No other changes have been made to thedirectorate of the group.Reporting Standards (IFRS) performancemeasures) are quoted in brackets as organic,after the equivalent metrics reported under IFRS.A reconciliation of non-IFRS performancemeasures (core headline earnings and free cashflow) to the equivalent IFRS metrics is providedin note 12 of these condensed consolidatedinterim financial statements. These non-IFRSperformance measures constitute pro formafinancial information in terms of the JSE LimitedListings Requirements.The group’s external auditor has not reviewed orreported on forecasts included in thesecondensed consolidated interim financialstatements. The review report of the group’sexternal auditor is included on page 22 and theassurance report on non-IFRS measuresincluded on pages 27 to 28. The auditor’s reportdoes not necessarily report on all the informationcontained in these condensed consolidatedinterim financial statements. Shareholders aretherefore advised that, in order to obtain a fullunderstanding of the nature of the auditor’sengagement, they should obtain a copy of theauditor’s report together with the accompanyingfinancial information from the company’sregistered office.On behalf of the boardPREPARATION OF THE CONDENSEDCONSOLIDATED INTERIM FINANCIALSTATEMENTSThe preparation of the condensed consolidatedinterim financial statements was supervised bythe group’s chief financial officer, Mr TN JacobsCA(SA).MI PatelChairCP MawelaChief executiveThe group operates in 50 countries, resulting insignificant exposure to foreign exchangevolatility. This can have a notable impact onreported revenue and trading profit metrics,particularly in the Rest of Africa where revenuesare earned in local currencies while the costbase is largely USD denominated.Where relevant in this report, amounts andpercentages have been adjusted for the effectsof foreign currency and acquisitions anddisposals to better reflect underlying trends.These adjustments (non-International Financial04 / MultiChoice Group / Condensed consolidated interim financial statements for the period ended 30 September 2020
CONDENSED CONSOLIDATED INCOME STATEMENTfor the period ended 30 September 2020Restated1ReviewedReviewedhalf-yearhalf-year30 September 30 September20202019NotesZAR’mZAR’m%change26 055(12 929)(7 192)(166)825 655(13 860)(6 774)(94)(1)25 776152(582)576(13)(25)4 926291(533)(358)(62)–175 884(2 333)4 264(1 890)38Profit for the period3 5512 37450Attributable to:Equity holders of the groupNon-controlling interests2 4471 1041 4679073 5512 3742 4475735641 467336334RevenueCost of providing services and sale of goods2Selling, general and administration expensesNet impairment loss on trade receivables1Other operating gains/(losses) – netOperating profitInterest incomeInterest expenseNet foreign exchange translation gains/(losses)Share of equity-accounted resultsOther lossesProfit before taxationTaxation3Basic and diluted earnings for the period(ZAR’m)Basic earnings per ordinary share (SA cents)Diluted earnings per ordinary share (SA cents)3655566677169T he group has reclassified expected credit losses on trade receivables from selling, general and administration expenses to net impairment loss on trade receivables.This reclassification was done to align with the requirements of IAS 1 in FY20. The amount reclassified is not considered to be material. The restatement is in linewith what was reported in the consolidated annual financial statements for the year ended 31 March 2020.2 The reduction in the cost of providing services and sale of goods is due to lower content costs in the current period. These lower content costs are due to the delayin sport events due to COVID-19 which reduces content amortisation, refunds received from content owners for content received in different formats, lower localproduction spend due to the inability to produce content due to lockdown restrictions and the non-recurrence of major sporting events that occurred in the priorperiod.3 The effective tax rate has reduced from the prior period due to a reduction in losses in the Rest of Africa segment.1MultiChoice Group / Condensed consolidated interim financial statements for the period ended 30 September 2020 / 05
CONDENSED CONSOLIDATED STATEMENTOF COMPREHENSIVE INCOMEfor the period ended 30 September 2020ReviewedReviewedhalf-yearhalf-year30 September 30 September20202019ZAR’mZAR’mProfit for the periodTotal other comprehensive income for the period:Exchange (losses)/gains arising on translation of foreign operations1,2Fair value losses on investments held at fair valueHedging reserve1– Net fair value losses– Hedging reserve recycled to the income statement– Hedging reserve recycled to the statement of financial position– Net tax effect of movements in hedging reserve3 5519(82)Total comprehensive income for the period3 5602 292Attributable to:Equity holders of the groupNon-controlling interests2 4611 0991 5857073 5602 292(269)(102)380(768)729–4192 37479(20)(141)(599)750(302)10T hese components of other comprehensive income may subsequently be reclassified to the condensed consolidated income statement during future reporting periods.2 Relates to the translation of foreign currency pertaining to the Rest of Africa and Technology segments. This is due to the effects of foreign exchange fluctuationsrelated to the group's net investments in all subsidiaries with functional currencies which differ from the group's presentation currency of ZAR. This movement isrecognised in other reserves on the condensed consolidated statement of changes in equity and primarily relates to the movement in the ZAR which appreciatedagainst the USD from a closing rate of ZAR17.86 in FY20 to ZAR16.75 in 1H FY21.106 / MultiChoice Group / Condensed consolidated interim financial statements for the period ended 30 September 2020
CONDENSED CONSOLIDATED STATEMENTOF FINANCIAL POSITIONas at 30 September 2020Reviewedhalf-year30 September2020ZAR’mAuditedfull-year31 March2020ZAR’m23 49916 4134 636232831691 96621 5629588 1113 7241 0194157 33525 40817 7374 3373512246342 12520 8498744 7503 8881 7334599 14545 06146 257Equity reserves attributable to the group’s equity holdersShare capitalOther reservesRetained earnings12 573454(13 565)25 68412 722454
07 Condensed consolidated statement of financial position 08 Condensed consolidated statement of changes in equity 09 Condensed consolidated statement of cash flows . MultiChoice Group / Condensed consolidated interim financial statements for the period ended 30 September 2020 / 01. slightly more than the prior year due to higher
The accompanying notes are part of the interim condensed consolidated financial statements Interim condensed consolidated financial statements CMA CGM / 6 Three-month period ended March 31, 2021 Interim Condensed Consolidated Statement of Financial Position - Liabilities & Equity (in USD million) Note As at March 31, 2021 As at December 31, 2020
Condensed consolidated statement of cash flows . 16 Notes to the condensed consolidated interim financial statements . 17 Independent auditor’s review report on the condensed . Prosus condensed consolidated interim financial statements for the six months ended 30 September 2020 1 Commentary
Condensed set of Interim Financial Statements An entity complying with IAS 34 has a choice of preparing a condensed set of Interim Financial Statements or a full set of IFRS financial statements. These Interim Financial Statements illustrate a condensed set of Interim Financial Statements based on the requirements of IAS 34.8. Where a full set of
These condensed interim financial statements were approved for issue on 29 August 2020. The financial statements have been reviewed, not audited. Condensed consolidated statement of profit or loss 5 Condensed consolidated statement of comprehensive income 6 Condensed consolidated balance sheet 7
interim financial statements report 04 consolidated interim financial statements 28 financial statements 31 notes to financial statements 37 certification of the condensed consolidated interim financial statements pursuant to art. 154 bis, fifht paragraph, of legislative decree 58/98 and of art. 81 - ter of consob regulation n. 11971/99
The interim condensed consolidated financial statements are expressed in Saudi Arabian Riyals (SR) and amounts are rounded to the nearest thousand. 3. Consolidation These interim condensed consolidated financial statements include the financial position and results of Samba Financial Group and its subsidiary companies.
These condensed interim consolidated financial statements have been prepared on a historical cost basis except for the revaluation of certain financial instruments to fair value. In addition, these condensed interim consolidated financial statements have been prepared using the accrual basis of accounting except for cash flow information.
ASTM D2310 - Machine-Made Reinforced Thermosetting Resin Pipe. 11. ASTM D2996 - Filament-Wound Reinforced Thermosetting Resin Pipe. 12. ASTM D4021 - Glass-Fiber-Reinforced Polyester Underground Petroleum Storage Tanks. 13. NFPA 30 - Flammable and Combustible Liquids Code. University of Houston Master Construction Specifications Insert Project Name AE Project Number: Fuel Oil Piping 22 50 00 .
