Multichoice’ s Phuthuma Nathi is one of the platforms used by the video and internet company, “to spearhead transformation” according to the Naspers majority owned company. As such Phuthuma Nathi, both 1 and 2 are not separate companies but fall under the umbrella of multichoice. Phuthuma Nathi has, as a result not been listed privately on the Johannesburg Stock Exchange.
Multichoice’ s insistence on Phuthuma Nathi being an empowerment scheme open for all Black income levels has seen it benefit more than 90 000 black individuals, who include Black business, stokvels and individual Phuthuma Nathi shareholders, since its inception in 2006. These 90 000 people hold 20% worth of stock, with the Johannesburg Stock Exchange listed company Phuthuma Nathi shareholders are divided into Phuthuma Nathi 1 and Phuthuma Nathi 2, these companies are said to be “mirror images” of each other, the former being established in 2006 and the latter being established a year later
Randburg based Multichoice is one of the top video entertainment and internet companies on the continent. Multichoice boasts various brands under its banner like Supersport, GOtv and MNET among others. Multichoice is a subsidiary of Naspers Limited, which is the JSE listed company. Naspers enjoys both JSE and London Stock Exchange (LSE) listings.
Phuthuma Nathi Shares Growth Driver
- Multichoice’ s Phuthuma Nathi 1 and Phuthuma Nathi 2 share price is largely determined by the performance of its holding company Multichoice, which is controlled by Naspers Ltd and the supply and demand dynamics that drive share price movement. Phuthuma Nathi holds 20% of Multichoice shares and as such the movements of Multichoice share price have a direct bearing on Phuthuma Nathi share price performance. 2017 saw the launch of various over-the-top (OTT) players in the South Africanmarket. In response to this competitive shift, Multichoice launched its own platform called ShowMax. This was done to grow and extend Multichoice’ s expansion and as an attempt to remain competitive in the OTT market. The expansion has the effect of extending Multichoice’ s product reach and growing the Naspers brand, which will have the carry on effect of enriching Multichoice Phuthuma Nathi shareholders and improving Phuthuma Nathi shareholder price. Multichoice is set to continue ensuring a broad library of great content, available across platforms that are relevant to its customers. ShowMax has added greater depth to the Naspers company’ s customer offering and further enhancing its “anywhere, anytime proposition” while building on its investor confidence driving growth for both Multichoice Phuthuma Nathi vehicles.
- Multichoice has added 325 000 customers according to live data estimates, (6% growth) across its various packages (reaching a high of 5,7m households). It has also ensured Improvements in its customer-service experience, continued, and improved its investment in local and international content. Multichoice has also seen the successful renegotiation of key sports rights, that have supported this growth. This bodes well especially for Phuthuma Nathi shareholders as sports viewing is a big and growing draw card in the South African television viewing market. Multichoice’ s flagship personal video recorder, the DStv Explora, remains a key differentiator and is available to customers at increasingly competitive prices. This personal video recorder provides an outstanding viewing experience and ensures that Multichoice customers have access to on demand services. Multichoice’ s BoxOffice product continues to grow, with monthly average billable rentals of 607 000 (2015: 593 000), 2% higher than the prior year. This will ensure a healthy growth for Phuthuma Nathi shareholders who hold stock worth 20% in the Naspers JSElisted company, collectively.
- Twelve new channels were added to the DStv platform in the period, 10 of these in the general entertainment and lifestyle genres. Various initiatives will be introduced to drive customer retention over the next year, including: driving DStv Explora sales through the ‘ price lock’ campaign, introducing fixed-term contracts, boosting connected Exploras by introducing MWEB bundles, and reducing dormancy by promoting value-added services and DStv Now MultiChoice and each of its brands have dedicated social media platforms that are scoring impressive figures and keep Multichoice in the forefront of people’ s minds. This has proven to be hugely popular with South Africa’ s young and social media inclined population.
- Multichoice has invested heavily in local content, and will continue to do so. This makes economic sense when considering the fluctuations in the rand and obviously means Multichoice is able to keep its costs lower. Keeping operating costs while expanding on product offering is a good financial move that will have positive effects on Multichoice’ s Phuthuma Nathi share price. However, Multichoice remains focused on developing and enhancing innovative products and delivering great local and international content on multiple platforms. Multichoice will deepen its investment in new technologies and build on the success of its mobile applications, the connected DStv Explora and its ShowMax platform to drive growth and ensure a positive balance for its Phuthuma Nathi stock.
Phuthuma Nathi Investor Tip
- The BBBEE share scheme has paid out R7.8 billion in dividends since 2006 to it’ s over 90 000 shareholders. The Phuthuma Nathi share price has seen a phenomenal increase of 20 times, and currently stands at a very lucrative buy price. An astonishing financial performance improvement from its purchase price of R10 per share back in 2006. Back in December 2011, financial analysts had predicted that the buy price on Phuthuma Nathi shares would see a 150% increase at least. The shares were independently valued by at least five independent organisations and respected finance houses. The common sentiment was a strong view that, although shareholders could have sold their shares, the Phuthuma Nathi share price would see a definite rise and the sensible thing would be for the investors to not put their shares up for sale, for this good rise in their capital.
- History has of course proven them correct with the Phuthuma Nathi share price trade at more than 20 times higher since its inception and reaching dividends of over R7.2 billion. Among these organisations, the overriding view was that Multichoice is a “highly cash generative” business, and this stands to make Multichoice an important part in the Naspers portfolio overall today, according to various forecasts.
Phuthuma Nathi Major Shareholders
How to buy ACCENTUATE Shares
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