MultiChoice remains a small contributor to the overall portfolio of Naspers, but is an integral part of its operations, according to analysts who specialise in tracking Naspers's performance. Renier de Bruyn, an analyst at Sanlam Private Wealth, said MultiChoice only accounted for about 5% of the valuation of Naspers, but contributed the majority of the group's free cash flow to fund its new ventures. "Tencent dominates Naspers's valuation, but only pays a relatively small dividend to Naspers, so Naspers is fairly reliant on MultiChoice to support its other businesses that are still in their investment phase," he said. Tougher competition Competition has lately intensified in the pay-TV market in Africa - with new entrants including Kwesé TV and over-the-top operators) such as Netflix that offer streaming services - posing a threat to Naspers MultiChoice business.MultiChoice Africa CEO Brand de Villiers said the operator had noted that the video entertainment market in sub-Saharan A...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.