MCC profit at CYP 570.000

Multichoice (Cyprus) Pcl (MCC) reported its preliminary 2005/06 results, recording a net profit of CYP 570.000 and EPS 0.84 cent, compared to CYP 171.118 profit and EPS 0.25 cent recorded in 2004/05.

Revenue were marginally lower at CYP 12.99 mln vs. CYP 13.1 mln in 2004/05. Gross Profit reached CYP 2.8 mln, down by 18.0% from CYP 3.4 mln a year ago, as cost of sales increased, in nominal terms, by 600.000 due to the full subsidization of digital decoders. Consequently, gross profit margin fell to 21.6% compared to 26.2% in 2004/05.

Operating expenses amounted to CYP 2.1 mln compared to CYP 3.5 mln, while because of the return of CYP 3.4 mln in dividend and CYP 4.76 refund of capital in 2005, interest income amounting to CYP 382.145 in 2005 turned into a net interest cost of CYP 8.393 for 2006.

Despite the loss of interest income, Multichoice managed to increase its profit to CYP 570.251 from CYP 171.118 a year ago.

In another development, the Company’s Board decided not to distribute any dividend to its shareholders.