Trading as a newly listed entity on the JSE for barely six hours on Wednesday, MultiChoice had already angered communications regulator Icasa.
The communications regulator has expressed “concern” that the listing of MultiChoice Group went ahead on Wednesday “even though there is a complaint before its complaints and compliance committee”.
MultiChoice Group soared 16% in debut trading in Johannesburg as the pan-African pay-TV company embarks on a new era of independence following a spin off by technology giant Naspers.
MultiChoice Group made its market debut in Johannesburg on Wednesday morning as a JSE Top40 company with a market capitalisation of about R44-billion shortly after 9am.
Ahead of its unbundling from parent Naspers and separate listing on the JSE, the bear case for MultiChoice is fairly well understood by the market. The reality, as always, is a lot more nuanced.
The pay-television broadcaster, which will list on the JSE later this month, has revealed all the price adjustments to its DStv bouquets, which will take effect on 1 April 2019.
MultiChoice won’t hike the price of DStv Premium in 2019, reflecting the pressure the pay-television broadcaster is under at the top end of the market.
The Competition Commission has elected not to refer complaints against pay-television operator MultiChoice and its SuperSport subsidiary to the Competition Tribunal.
MultiChoice will carry losses incurred by Showmax in the “medium term”, but the goal is eventually for the streaming television service to turn a profit once broadband infrastructure in South Africa and the rest of the continent has been built out further to support it.
Streaming services pose a significant threat to MultiChoice’s future growth potential, but they are by no means the only risks exercising the minds of the pay-television operator’s management team.