MCC profits dive as NOVA subscribers soar

Multichoice (Cyprus) Public Co. Ltd. issued a profit warning regarding its first half results ending September 30, but revealed that the number of its NOVA Cyprus digital platform customers has climbed to 11.000.

MCC said that although the digital platform was hurting results in the short term, but stressed that the long term benefits would arrive as more customers decide to shift from analogue to digital to receive their LTV and Alpha programmes, in addition to another 80.

Part of the reason for the burden on the accounts is the fact that MCC is writing off the cost of investment straight to the accounts, as opposed to capitalising the expense, and also because it is subsidising part of the costs associated with the shift by its analogue subscribers to digital.

The company believes that as the number of its digital subscribers rises, so will its profitability.

Other factors affecting the profitability of the firm and why its results are deteriorating is due to lower finance income, since the company decided to return 12 cent per share in dividend and special dividend as well as the unrealised loss that it has taken on its investments.