JP Morgan downgraded MultiChoice’s rating from “neutral” to “underweight”.
- An “underweight” rating suggests that the company is expected to underperform in the next six to 12 months.
- MultiChoice’s share price dropped nearly 13% following the rating downgrade.
- Gryphon Asset Management highlights JP Morgan’s belief that MultiChoice will invest more in Showmax than anticipated.
- MultiChoice has invested billions in Showmax to compete with Netflix, Disney+, and Amazon Prime Video.
- Amazon has poached one of MultiChoice’s top executives, Gideon Khobane, to lead Prime Video Africa.
- MultiChoice’s partnership with Comcast’s NBCUniversal and Sky forms the new Showmax Group.
- The company’s investment in Showmax contributed to its reported loss of R2.9 billion for the financial year and the inability to pay dividends to shareholders.
Regenerate response