MultiChoice Shares Rise To Their Best Level Since JSE Listing
The stock reached a high of $8.49 on the morning of Wednesday 13 March. This is 6.5% higher than Tuesday’s close.
On February 27, MultiChoice’s debut on the JSE as a standalone entity, the stock closed at $7.32.
The group’s market capitalisation peaked at $3.6 billion just before midday on Wednesday. This was affirmation that MultiChoice remains firmly in the JSE’s top 40 index.
Just before its listing, analysts had put forward wildly varying valuations for the group.
To some, the DStv mothership’s high-growth phase was seemingly over, especially considering that Netflix and other online streaming services are shaking up the pay-TV market.
Others analysts are optimistic about the group’s prospects, since pay-TV penetration remains low in the rest of Africa and connectivity is still prohibitively expensive to most people in South Africa.
The MultiChoice Group has over 7.2-million subscribers in South Africa and approximately 6.7-million across 49 other African countries, where internet penetration levels are lower.
Before MultiChoice’s listing, most valuations varied from R3.4 billion to $6.2 billion.
Credit: This article originated from www.businesslive.co.za