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Review of operations

 
 
 
 
 
 
  Revenue (in rand millions)
   
2008  
11 542  
2009  
14 858  
   
   
  Ebitda (in rand millions)
   
2008  
4 272  
2009  
5 197  
   
   
  Operating profit (before amortisation and other gains/(losses) in rand millions)
   
2008  
3 940  
2009  
4 737  
   
  Oracle Airtime Sales, kykNET, M-Net Action, M-Net Series, M-Net Movies, M-Net Stars, KooWee, AfricaMagic and Channel O  
 
PAY TELEVISION
South Africa
The pay-television sector provides affordable entertainment and has proved its resilience in tough economic conditions when people cannot afford more expensive forms of entertainment. The gross base grew by 453 000 subscribers to close on 2,4 million households at 31 March 2009. The three lower-priced tiers (the entry-level EasyView; Select, which is a niche tier; and Compact, a mid-priced tier aimed especially at the growing emerging market) were strongly promoted. The Compact bouquet increased by 212 000 gross subscribers.

A new high-definition personal video recorder (PVR) was launched and further improvements will be introduced in the year ahead. PVR sales reached 330 000. This facility has revolutionised viewing habits, allowing subscribers to record content to view later, pause live television, as well as view and fast forward recorded content, all at the touch of a few buttons.

Our DStv bouquet comprising 87 channels was refreshed during the year. New channels added include ESPN Classic, eNews, CNBC Africa, Nickelodeon, Saffron TV, AfricaMagic+, Setmax and four new BBC channels. The live broadcast of the 2008 Beijing Olympics in high definition featured prominently, with six dedicated channels.

Local productions in various genres attracted growing audience numbers. Top performers included reality shows, Idols V and Big Brother Africa III; soap operas Egoli and Binnelanders; comedy show Coconuts and actuality show Carte Blanche.

However, margins came under pressure due to intense bidding for key sports rights. SuperSport is now by far the largest funder of sport on the African continent. Pressure on margins was further exacerbated by increased decoder subsidies to stimulate growth of the middle-class emerging market in particular.

The Randburg customer service centre was revamped to improve MultiChoice’s service levels. Further improvements are in the pipeline.

 
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Naspers