JSE-listed video entertainment group MultiChoice is set to distribute R1.375 billion in dividends this year via its black economic empowerment (BEE) scheme Phuthuma Nathi.
According to the company, more than 75 000 black shareholders from all walks of life – including domestic helpers, gardeners, professionals, stokvels and small businesses – will receive R20.37 per share (R16.30 after deducting dividend tax) in the first week of September.
MultiChoice created Phuthuma Nathi in 2006 to offer black South Africans the chance to own an indirect stake in MultiChoice South Africa.
The video entertainment group notes the initial public offer in 2006 and the second public offer in 2007 were oversubscribed.
Elias Masilela, MultiChoice SA chairperson, says: “The challenging macro-economic environment continued to affect our business during the past financial year, and we are pleased we could still grow earnings and cash flows to support a stable dividend.
“We see dividends as an important driver of Phuthuma Nathi’s shareholder value and are proud of the difference they’ve made to the lives of ordinary South Africans over the years, from paying for their children’s education, to being a source of additional income during difficult times.”
Phuthuma Nathi chairperson Mandla Langa adds: “This share scheme is a testament to MultiChoice’s dedication to support participation, inclusivity and diversity in South Africa’s economy. Since 2006, Phuthuma Nathi has received R19.1 billion in dividends from MultiChoice, which has allowed us to deliver exceptional value for our shareholders.
“An investment in Phuthuma Nathi of just R4 000 in 2006 would have yielded R42 400 in share value and more than R65 256 in dividends to date. This represents a 30% annual return over the past 18 years, significantly above market benchmarks.”
The Phuthuma Nathi dividends come as MultiChoice continues to struggle financially. In its financial results for the year ended 31 March, MultiChoice revealed overall active subscribers declined by 9%.
According to the company, this was mainly due to a 13% decline in the “rest of Africa” business, with Nigeria, Angola and Zambia most affected, while the South African business was more resilient, declining by only 5%.
French-based media giant Canal+ is looking to take over the South African firm in a R30 billion deal.
Over the years, MultiChoice’s numbers have reduced amid pressure from global streaming services such as Netflix, Disney+ and Amazon Prime.
“It is unfortunate that some Phuthuma Nathi shareholders are missing out on these dividends. In certain instances they have not updated their banking details and in other cases they are deceased and the dividends are owed to their estates,” Langa notes.
“We are actively reaching out to shareholders or their families to ensure they receive their dividends. We have embarked on an aggressive campaign since 2020 to reduce unclaimed dividends. Since then, a total of R116 million in unclaimed dividends has been paid out, but an additional R215 million remains unclaimed.”
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