Multimedia group Multichoice has warned shareholders to expect a headline loss when it reports its finances for the six months ending 20 September next week.

Compared to the first half of 2022, the group expects the loss per share for the current period to be between 248 cents and 252 cents lower than the prior period’s reported loss per share of 60 cents.

Headline loss per share for the current period is expected to be between 229 cents and 233 cents lower than the prior period’s reported headline loss per share of 58 cents.

The headline loss has mainly been attributed to foreign currency movements during the reporting period, some of which are unrealised, Multichoice said.

This is primarily due to a sharp depreciation in local currencies against the US dollar.

Multichoice said this impacted the revaluation of USD-denominated transponder leases and the non-quasi equity foreign exchange losses on the intergroup loans with MultiChoice Nigeria.

Losses were further impacted by the increased investment in Showmax ahead of its relaunch in the second half of FY24, it said.

“Management’s focus on pricing and cost disciplines, as well as on subscriber retention, a better customer mix and lower decoder subsidies, delivered an encouraging trading performance on an organic basis,” the group said.

“This was despite the increased investment in Showmax ahead of its anticipated relaunch in the second half of FY24. On a reported basis, an adverse economic and exchange rate environment impacted negatively on the group’s financial results.”

Further details will be provided in the consolidated interim financial results, due to be released on the SENS on 15 November 2023.