Hello, a very good morning. Welcome to MultiChoice's very first Capital Markets Day. I'm Gugulethu Mfuphi, I have the pleasure of being your MC for today. Since its listing on the JSE about four years ago, the MultiChoice Group has been on an exciting journey, one that has seen it battle a pandemic, form global partnerships, and yet continue to deliver fantastic content and household services to more than 100 million people across 50 markets and in more than 23 million households. That's certainly something to be proud of. Today, we give you insight into the strategic adaptations that the business has undertaken to leverage its success to drive future growth and long-term value creation. MultiChoice is no longer merely a TV business. It's a digital platform that aims to unlock the potential of the economies and the people in their key markets. You'll be blown away by some of the new areas of growth and potential that will be highlighted today. KingMakers, Showmax, Moment. These are all new avenues that form part of the MultiChoice family, and you'll hear more about from the various executives that will speak to us today. Before we get into the overriding program for this morning, let's take care of some housekeeping. I'm sure that you've seen the agenda and noted that each session is followed by 10 minutes of questions and answers. We strongly encourage you to participate, so please use the chat box provided for your questions, and we will aim to answer as many as we can within the allotted time. We know that we may not be able to get to all of your questions over the next three hours. Be assured that the investor relations team will respond to you directly in the upcoming weeks. With that out of the way, I'm rather pleased today to introduce the CEO of MultiChoice Group, Calvo Mawela, who will take us through the strategy, outline the substantial opportunity in Africa, and detail just how exactly MultiChoice is pursuing new opportunities to create a world of more. Thank you, Gugu. Hello, everyone, welcome to our very first Capital Markets Day. Since our listing on the JSE four years ago, we have been on an exciting journey to reposition our business for future growth and long-term value creation. As part of this process, we have refined our strategy, today, I would like to take the opportunity to explain our thinking to you in detail. I want to begin by briefly speaking about our proud history, which has been built over almost 40 years and has led us to becoming Africa's most loved storyteller. We're in more than 23 million households across 50 markets, reaching more than 100 million people on a daily basis. Our unrivaled African footprint puts us on par with our international counterparts. We have the benefit of real scale. For comparison, on a subscriber base, we are only marginally behind Canal+ and similar in size to Sky. Before we get into the details of our strategy and ambitions, I want to give you an idea of the work we have done since we unbundled from Naspers in 2019. We have taken the time as a team to critically assess our strategy for long-term value creation by identifying and analyzing new growth opportunities. Key to this has been our ability and opportunity to leverage our platform to fundamentally transform the group. Over the past 18-24 months, we have made progress in creating a broader ecosystem, creating a world of more to generate meaningful future revenue streams. While we have made strides, we need to collaborate with partners to achieve our vision. When we decide to collaborate with our partners, we look for those who are the best in the market, those who are global leaders in their fields. KingMakers, the Showmax agreement with Comcast, and our fintech partnership called Moment, are recent transformative deals for our group. Today, we hope to bring you a sense of what the excitement is all about, what this world of more is all about. There is a reason for this excitement. Africa presents a unique and substantial opportunity. Africa is both aspirational and inspirational. There is an excitement in Africa driven, like we are, by a desire to create a world of more. During my travels across the continent, I've witnessed the entrepreneurial, can-do, self-starter spirit that is driving the continent forward and will lead to a bigger middle class. Over the next 10 years, Africa's population is expected to grow to 1.4 billion people. This growth is more than that of India and China combined. Its working age population is forecast to grow by more than 1/3 to 800 million workers. More people will move to the big cities, with the urban population forecast to increase to 47%. All of this means that, going forward, there will be a rapid rise in the demand for households consumer services like our business. The population growth is accompanied by higher levels of connectivity. Over the next couple of years, there is expected to be a 12% increase in the number of electrified homes. We hope they can keep the lights on. A 39% increase in mobile internet penetration and a 27% increase in smartphone penetration. With the rising working age population and increased connectivity, spending power is expected to grow proportionally. The regional middle class is set to grow by a compound rate of over 4% per annum. With middle class spending following suit. Led by a rise in private consumption, Africa's real GDP growth for the medium term is forecast to be second only to Asia, presenting numerous benefits for a consumer-facing business like ours. Is set to increase across our markets with an average rate of 4% forecast for the Sub-Saharan region. Given Africa's growth prospects, it is not surprising that investment into the continent is accelerating. Africa is reflecting similar dynamics to high-growth markets like India 10 years ago or China 20 years ago. The number and value of venture capital deals in Africa has risen sharply in recent years despite the pandemic. These venture capital deals have focused on key verticals such as fintech and large markets, particularly in South Africa and Nigeria. Despite a challenging consumer environment, roughly $2.6 billion or half of the total VC investment in 2021 was spent in Nigeria and South Africa as investors tend to look through the cycle. Investments will help to improve the plumbing in African economies and solve structural issues on the continent, notably around logistics, commerce, and education. I've presented some external data to demonstrate the opportunity in Africa in general, but we have our own insights that have driven our strategy. As we have seen, we have unparalleled access to the African consumer, providing us with a unique vantage point and giving us invaluable forecasting capabilities. As a result of this forecasting, we can adapt our offering to consumer demand and preferences, ensuring we remain relevant to our customers. This ability is critical to our future success. Based on our consumer insight, we know that African consumers want improved reach, affordability, and quality, need competitive alternatives to fiber to the home and personal computer environment, want tailored localized services over plug-and-play imports, and they need to solve for security, information, payments, entertainment, and other critical needs. With all this in mind, our vision is to be the platform of choice for African households and to enrich their lives by delivering entertainment and relevant consumer services through technology. We are doing this by growing our core linear pay-TV business, developing and scaling our online and interactive services, and by making select investment in scalable tech-based consumer services. We don't plan to do everything by ourselves. As we have demonstrated already, we are comfortable with pursuing a process of innovating, partnering, and investing as appropriate. We innovate to develop products, services, and business lines organically. We partner with best-in-class third parties to deliver value-enhancing services to our customers together. We invest in compelling opportunities that align with our strategic priorities. This provides us with the best opportunity to leverage our trusted brand and unmatched platform. Let me demonstrate how we are delivering on our vision. We continue to expand our ecosystem by creating a world of more. We keep increasing the value that we offer to our customers. As consumers find themselves using ever more avenues to access content, a critical pillar of our video entertainment strategy is aggregation. In the past year, we have added Disney+ to our Explora Ultra environment. We have offered customers cost-saving bundles to add to the convenience of accessing all content in one place. We have enhanced our catch-up service with deep library content through the addition of Universal+. We have launched dedicated linear channel for the extremely popular SuperSport Schools app. In March, we announced that we are joining forces with Comcast, NBCUniversal and Sky to drive Showmax to become the leading streaming platform on the continent. To ensure that our viewers can access our content in a way that best match their needs, we have launched streamer and plan to launch DStv Glass in partnership with Sky in 18-24 months. We are proud to be launching one of the most innovative television products and most powerful content aggregation tools globally. We have continued to expand our offering, leveraging our platform and our trusted brand to provide customers with products and services that they value. We have done this by investing and partnering with leaders in the home services, fintech and interactive entertainment verticals, as well as our partnership with Comcast and Showmax that you'll hear a little bit more later. If you look at the bottom right-hand side of the graph, you'll see that we have added the Namola app to our Aura app to improve our security offering. We have strengthened our connectivity offering by expanding the DStv internet devices from capped fixed wireless LTE to uncapped fiber. We have expanded our fintech activities by investing in Moment, a partnership with Rapyd and General Catalyst. Moment is set to transform the payment landscape on the continent, and the CEO, Joel, will tell you more about this later today. Last, but certainly not least, we have invested in interactive entertainment to complete our ecosystem. Our portfolio consists of SuperPicks, KingMakers and BetKing, which we are excited to launch in South Africa very soon. All of these new services and offerings are possible as a result of the power of our platform, which underpins our strategy. Our customers are central to our business, and we have a deep history of enriching lives by bringing the magic to millions of people across the continent. Over the years, we're able to scale our business to reach more than 23 million households. With an average of 45 people per African household, we now reach well over 100 million individuals across the 50 markets that we operate in in Africa. That is the power of our platform. We have scale, distribution, and insights that set us apart and provide us with a competitive advantage. From this strong foundation, we have innovated and evolved to meet our customers' diverse entertainment needs with superior content, next-generation devices, OTT services, and third-party subscription video on demand partnerships. That is why we refer to it as a platform of choice. More recently, we started leveraging our platform to build a broader ecosystem, either through our own innovations, by partnering with others, or investing directly in new opportunities. We have added interactive entertainment through sport betting, fintech services, and some home services, all of which offer scalable tech-based consumer businesses that we believe can grow faster by leveraging the power of our platform. In time, we expect these new services to contribute meaningful revenue streams to complement our existing pay- TV business and ensure we can drive long-term growth and value creation for our shareholders. We have spent the time to ask ourselves the hard questions and analyze what really sets us apart. We realize that it is hard for a company to reinvent itself, and we know that we can't be all things to all people. We also understand that pay- TV people are unlikely to run businesses in other market sectors as effectively as entrepreneurs who are native to those environments and business models. We appreciate the need to be careful and avoid stretching ourselves, our support structures, and our systems in too many directions too quickly. That is why we are leveraging our unique strength as a scalable platform while partnering with best-in-class third parties to ensure that we execute strongly as a collective. On their side, our partners know that nobody can provide them with deep understanding and access to the African continent on the scale that we can. What are our unique strengths? We have a trusted brand and solid brand equity that is a result of many, many decades of operating in our markets. We have broad distribution capabilities. We operate across 50 markets with more than 25,000 points of sale. We have tried and tested regionalization strategies, strong in-country execution, supported by group functions offering best practice solutions, and we offer comprehensive digital service channels. We have strong technology foundation, especially in terms of our transmission capabilities, cybersecurity solutions through Irdeto, online delivery capabilities and distribution, and partner integrations. We have scale payment capabilities represented by an expansive payment hub that already integrates well around 200 strategic payment partners across the continent. We have deep local capabilities, which include unique customer insights and intelligence, valuable local partner relationships, local language offerings, and predominantly local staff. Given our many years of operating on the continent, we also have a very good understanding of local governments, as well as the various regulatory and licensing regimes. In short, we know Africa better than anyone else, and we have unmatched scale. We have a multi-pronged approach to growth in our core business. Demand is growing for both our linear and SVOD services, and we have positioned ourselves to capture this opportunity. For us, linear TV still represents an attractive growth opportunity, especially in the rest of Africa, with penetration set to increase from 42% to 47% over the next few years. Satellite currently remains the cheapest way of distributing long-form video content to a very broad segment of our markets, especially in more rural areas. A growing African linear pay- TV market is in contrast with most other markets in the world where linear TV is ex-growth and increasingly being fragmented by predominantly online products and services. On the OTT side, we are approaching an inflection point in terms of broadband connectivity and data pricing. We therefore expect penetration to double in the next few years. After almost 40 years, we have retained our overall leadership position despite competition in our markets, and we still have an opportunity to grow our linear video business. We currently have more than 23 million subscribers across the continent, while the addressable market is estimated to amount to 58 million or 2.5 x our current active base. This leaves more than 30 million households that are up for grabs, of which around 1/3 are currently accounted for by our competitors and around 2/3 represent greenfield opportunities. How do we bridge that gap? We believe we can keep growing our linear business by continuing to bring the best content, especially local content and sport, as key differentiators. By increasing activity in our install base, in other words, driving up the active days of our customers. By growing into undersized markets through our regionalization strategy and by continuing to offer great value proposition than anyone else. When it comes to streaming services, Africa is set to experience exponential growth. Internet penetration of the Sub-Saharan population in Africa has doubled to 40% over the past five years and will continue to increase over time. Connected households are forecast to grow to over 600 million by 2027. The average cost of data is approaching the $1 per gig threshold, which is accepted as the point of exponential growth due to affordability. They are strong supporters for the increase of streaming services on the continent. All these positive industry dynamics have greatly influenced our recent decision to materially step up our ambitions around streaming. In March this year, we announced that we are joining forces with Comcast, NBCUniversal and Sky to drive Showmax to become the leading streaming service in Africa. Launched in 2015 as one of the first streaming services in Africa, we are extremely proud of Showmax's success to date. However, given the significant opportunity, we needed a technology solution that will match our ambitions, enable us to scale as fast as the market grows. Powered by Peacock's leading globally scaled technology, the new Showmax entity will be 70% owned by MultiChoice and 30% owned by NBCUniversal. The new partnership will also bring some of the world's best content to streaming customers across our footprint in Sub-Saharan Africa. Yolisa and Andrea will discuss the exciting opportunity in more detail after my presentation today. That's our core video business, but I'm sure you are wondering about our other verticals, why and how we choose which to pursue. We follow a very clear set of criteria when considering new opportunities. Firstly, an opportunity needs to be what our customers want, as enhancing the customer value proposition is fundamental to expanding our ecosystem. Secondly, the business model needs to be scalable, representing rapid growth in a sizable segment or vertical. Thirdly, there needs to be a strong technology underpinning to the product or service offering. It needs to provide capital light, digital service for a market that is increasingly coming online. Fourthly, the opportunity needs to leverage our existing platform to accelerate its own scale and reach. In other words, it must benefit from access to our installed base and regional expertise, as that will help the business grow faster and much larger, increasing value for everyone. Finally, perhaps most importantly, the opportunity needs to meet our capital allocation requirements. Attractive opportunities from our perspective need to deliver strong IRRs, well in excess of our 14% weighted average cost of capital, and ideally above 20%, which is the hurdle rate set for our performance share scheme, which is very stringent and linked to realizing shareholder value. By leveraging our platform and continental knowledge, we are able to add capital light adjacent verticals to our ecosystem. We see opportunity to serve a broader range of consumer needs and to grow our service offering over time. To date, we have identified the following opportunities. Sport betting is an interactive entertainment want, and the market opportunity in the medium term is almost equivalent to that in linear video entertainment. The investment in KingMakers was our first meaningful investment outside of pay- TV and is delivering solid growth momentum, especially in Nigeria, where it's tracking in line with our initial investment case. Fintech represents a massive opportunity, even if we were to just consider a specific subsegment like digital payment. So far, we have grown our insurance business to 2.5 million policyholders, and we have invested in Moment, which is set to transform the African payment landscape. Joel will tell you more about Moment in his presentation today. Home services is a natural expansion of our in-home pay- TV offerings. Our internet offerings are gaining good traction, while on-demand security and emergency services, Aura and Namola, are set to deliver growth by leveraging our customer base over time. Where to from here? By leveraging our unique competitive advantages and the power of our platform, and by executing on our focus strategy, we believe we can grow into a much larger and more valuable business, where the smaller segments of today will become much more meaningful contributors to our revenue, profits, and value over time. In short, by making the most of the opportunities to expand our ecosystem, we are looking to transform from a great pay- TV operator into a leading consumer tech player. We believe we are well positioned to deliver exciting growth and attractive shareholder returns over time and have a huge amount of passion for what we are doing. It has been a pleasure to welcome you to our first Capital Markets Day today. I hope that you enjoy hearing from the rest of our fantastic team as they walk you through some of the important aspects of our business in more detail. Thank you so much, Calvo. Really phenomenal insights that you've shared with us so far here today to gain more clarity on the metamorphosis and strategic direction of MultiChoice Group. For you as investors, we've come to an important part here today, the question and answer session, and Calvo's joining me, but he's not alone. He's certainly accompanied by the Group CFO of MultiChoice, Tim Jacobs. Gentlemen, such a pleasure to have you both here this morning. Good morning. Good morning. Yeah. Quite a story that we're going to share regarding MultiChoice, and I guess, Calvo, you've already set the theme and the tone that there are these various verticals we're going to explore. Lots of excitement, lots of growth. Help us understand, of the verticals that you've mentioned thus far, are there any others that you'd like to pursue going forward? No, the verticals that we have mentioned in the strategy session are the verticals that we have decided to go for. They are exciting. They present great potential for the business going forward. Those are the ones that we're going to execute on. Key focus areas that have been highlighted. I'm excited to hear more about Moment, KingMakers, and of course, continuing with the focus on Showmax, as well as video on demand. I know that typically you wouldn't ask a parent who their favorite child is, but in this particular case, as we look and review these various verticals, do you believe that there might be one or two that will really unlock and contribute more significantly to shareholder value? Yeah. All these verticals were chosen very carefully. The reason behind these particular choices is that we believe very strongly that they will all be able to contribute meaningfully towards shareholder returns and deliver great value for us. Mm-hmm. Some of them might be bigger than the others, but in the main, what we are saying to you is that we have carefully looked at all these verticals, and we're excited about them because we believe very strongly that they will contribute meaningfully to the investment case. Mm-hmm. Growth is what we want. Increased profitability is what we're also looking for. Tim, maybe this is where I can come to you just to get further insight, especially as we take a look at the macroeconomic landscape, primarily focused on South Africa. Things haven't been easy. It's been difficult. Help us understand if this has led to you having to review the margins as well as growth prospects that come out of this region. Yeah, certainly the macroeconomic factors are difficult in South Africa at the moment. Mm-hmm. Load shedding compounding that, and of course we had to come out with a, with a updating trading statement a couple of months back. Mm-hmm ... to, like, revise the guidance that we'd given on the South African margins. Again, when we look at the South African business, you know, as a management team, we try not to be overly focused on the stuff that we can't control, right? We're very aware of it, but at the same time, we try to then, you know, outperform on the parts of the business that we do control. For example, Calvo has gone and refreshed the management team. We've made a couple of changes there. We've got a reinvigorated team that's really looking at every opportunity, every part of the business, making sure that we leave no stone unturned and trying to make sure that in the short term, while we have these economic factors, we don't think they're gonna be there forever, but while they are there in the short term, can we improve business performance and make sure that we try and make up those margins where we can over the coming months. Mm-hmm ... and years. Got you. Let's talk linear TV. This is a twofold question for the both of you, right? 'Cause that's your traditional business, content, linear TV delivery. Calvo, perhaps for some investors they might be concerned that as you diversify your interests into these additional verticals, does it not risk taking away your focus on linear TV, generation, income generation? Perhaps this is also a key point just to understand from your financial perspective here, Tim. Yeah. Calvo? We are very clear about what we know and what we understand. We are not taking our focus at all. In the presentation you'll have noted that I picked up on that specific issue that we are not going to be everything to everybody. Mm-hmm. We are going to partner with the best in class in the segments that we believe are going to give us good returns. In terms of KingMakers, you have seen we've taken a stake in an existing business. Fintech, we have partnered with Rapyd and General Catalyst who are the best in class in terms of this area. Mm-hmm. They've got their own management teams, each of these new verticals that we are investing in, and we are giving them support in terms of our understanding of the African continent, the distribution that we have, regulatory and legislative understanding of the continent. That is the support that we give them for them to be able to spear ahead and be able to execute. So it's not going to take our focus from the traditional pay- TV business. Got you. Tim, from your perspective, I guess this just adds to the opportunities of revenue generation, right? By focusing on these increased verticals that have come on board. Correct. I think, you know, meeting the challenge of Calvo's strategy means that the linear businesses have to fire. South Africa has to keep generating cash. Rest of Africa, we're looking to turn to break even this year. Then it needs to start generating funds in its own right. We're very focused and understand the strategic importance of making sure that the linear businesses, you know, don't wobble at a time when we're making investments in these new verticals. We're very, very focused on making sure that these all get the appropriate level of attention. Got you. Maybe focused on rest of Africa, I do understand that the objectives there are to return to profitability. Currency headwinds also face a major challenge there. How are you mitigating and managing that risk? Yes, I suppose, you know, when we look at risk across the continent, you know, outside of South Africa that has specific load shedding and economic issues, I think the currency in Nigeria is probably the biggest threat to, you know, to our short-term performance. The parallel market rate, which is where we get money out of the Nigerian economy, is very weak at the moment. We've been able to consistently get cash out, so I suppose that's the positive side of that. The negative side is that, you know, we haven't always been able to get them out at, you know, at the best rates. Having said that, again, right, you know, that's the part of the business that we don't really have a lot of influence over. We can't control those rates. What we can control is the ability to scale that business and make sure that we get to a significant level of profitability so that it compensates us for these losses that we're taking in the short term. 100%. Well, Calvo and Tim, I must remind you there's a wonderful audience of investors who are participating here today, and we've actively called on many of you to share your questions, submit your thoughts, your comments and your feedback. That's exactly what these Q&A sessions do allow, for you to have a better understanding of MultiChoice Group as well as its strategy going forward. Tim, there's a question that's actually come through here from one of our participants through the chat platform. It's directed to you, and it says here, "In light of the pivot from into different verticals, is there a minimum shareholding target for each partnership? Second to that, are there clear governance structures in place to avoid conflicts of interest with the businesses that are being partnered with?" Maybe a twofold question for the both of you here. Okay. Let me start. I think we've started in each business with what we have felt is a reasonable level of investment, right? If I just go through each of them. In the Showmax business, which is a business that we owned, we've been very comfortable with our partners coming in as a 30% shareholder. We retain 70%, and we retain the bulk of the economic benefits. We also... Remember that business is very closely aligned to our linear business. Mm-hmm. These are video businesses. They're just delivered over slightly different technologies. There we're very comfortable having that 70% and having it within our control. In the case of KingMakers and Moment, these are slightly different businesses. These are businesses where the partners are bringing significant value to the MultiChoice ecosystem, and in these instances, we've been happy to relinquish control. We have influence, for example, in KingMakers, but the management team there, and we don't have control over the shareholding and the board, but we have influence over the board. Got you. From a governance perspective. Sorry. Just lastly, then if we look at Moment, of course, there, you know, it's a, it's basically a three-way partnership with General Catalyst, Rapyd, and ourselves as, you know, as a 26% shareholder in that business. From a governance perspective, I think this is one of the things, as the listed company in most of these relationships, we try to make sure that the level of governance that is happening in these businesses is at the right levels, and that we apply the same principles of governance that we do within the MultiChoice system to these boards and to these different investments. Mm-hmm. Obviously, we have to be cognizant of the fact that we don't control them, but because we have influence, we can, you know, make sure that we set minimum standards. We're not gonna compromise our integrity, you know, by allowing governance to lapse in any of these areas of the business. 100%. Just to add on that, I think they are going to hear more from some of the guys that are leading these businesses. These are credible people with a great track record of running big businesses, which will give them comfort that indeed governance issues are addressed. Definitely. Maybe we can keep on that particular point, because governance is quite a key concern and of course will be brought to the fore going forward. Calvo, here's a separate question, again, speaking to the partnerships that you've formed, and they ask for, "Can you give us an update on the Sky Glass partnership?" Any news that you're able to share here? Yeah. The teams are working very well together. There is a lot of progress that is being made, on the technical side to make sure that our platform is able to move on to the Glass platform. Of course, in this type of discussions, there's always a number of teething problems that need to be addressed far ahead of time. So far, we have given a guidance that, it will be in the next financial year, not this financial year. We think the teams are on track to be able to come up with something in the timelines that we have shared. It's exciting. The Glass TV is just superior than any other TV that we have seen before. Mm-hmm. Ease of use, discovery of content. We're excited about us launching it in South Africa first. 100%. We're looking forward to it. There's another question that comes back to South Africa, I guess, just to highlight how important this market is. Tim, it's addressed to you, and the question asks, "How meaningful has the impact of stage four to six load shedding been on your subscriber base? Is there anything you can do to better manage this? Do you think you can win these subs back if load shedding improves in 2024? Yeah. Very good question. I mean, again, we see a direct correlation between the level of load shedding and the impact on our customers. Once you get into kind of stage six load shedding, where we were for quite a bit of the second half of this last financial year, we see two direct correlations that we look at. The first one is we look at industry data, right, that is independent of us. When we have a look at the industry as a whole, at stage six, viewership dropped about 34%. Mm. Whereas on the DStv platform, we only dropped 12%. The second statistic that we use is the difference between what's happening with our 90-day subscriber base and our active subscriber base at a point in time. We are seeing a disconnect between these two, where active subscribers have gone slightly negative, and we're still seeing growth in the 90-day subscriber base. What that tells us is that in our view, although people are under economic pressure, and they are choosing when, very tactically, when to come and renew their subscriptions. Mm-hmm ... they still want to be on the platform. In the 90 days, over a period of three months, we're seeing that number's a lot higher than the active day. That means that our product is still resonating with customers. We're still comfortable that despite the load shedding, we think customers will come back, and we've had experience of this in Africa. Mm-hmm. A number of markets in particular, you know, if you look at Zambia and Zimbabwe, when the drought has hit Kariba dams and the water has dropped. Mm ... they've had electricity problems. Ghana's had electricity problems. All of these markets tend to bounce back quite strongly once those issues are resolved. 100%. Also speaks to ongoing innovation, right? I look at me with all my devices. That also speaks to, you know, the apps and the streaming platforms, which also fall under the various MultiChoice units. Solutions are being sought. Gentlemen, we'll pause it there for today, we'll certainly continue interacting with the both of you as we dig deeper into the insights that we'll hear regarding the various verticals that we'll discuss. Thank you so much for your time so far. Thank you. Thank you. Thank you. Well, of course, a reminder to you as audience participants to keep your questions coming through. There will be an opportunity for us to address them. If we struggle to over the next three hours, please do be assured that the investor relations team will respond to you directly within the upcoming weeks. That we've got some insight into the various elements of this business, let's cross to one and focus on an aspect of MultiChoice that we are quite familiar with, its video-on-demand platform, Showmax, which was launched back in 2015. Since then, we've seen an increase in competition in this market, but that hasn't deterred MultiChoice from maintaining and pursuing ongoing success. Up next, we'll hear from the CEO of Showmax, Yolisa Phahle, who'll give us a clearer view of Showmax 2.0 in partnership with Comcast. Thank you, Gugu. Hello, everyone. It's great to be here, and I've been really looking forward to finally being able to tell you more about the exciting journey that lies ahead to Showmax. Welcome to this section of our Capital Markets day. About three months ago, we announced our intention to step up our streaming ambitions and shared the news that we're joining forces with Comcast to create the leading streaming platform on the African continent. This partnership, which we've been working on for more than two years, will be the focus of my presentation today. Streaming has become a huge growth sector for video, not only in the developed markets, but also in the developing world. Today, there are about 1.4 billion streaming customers globally. That's 18 x more than 10 years ago. Although it started in the U.S. and Europe, today, other markets account for more than half of that $1.4 billion. Historically, the large tech companies dominated online video. Today, traditional media companies like us are also successfully staking their claim. For example, looking at market share for North America, 10 years ago, legacy media companies had a streaming market share of only 9%. Today, that number has increased to 42%. Put another way, in 2013, Netflix owned 70% of the market, but today that number has dropped to 15%. There is a huge opportunity for SVOD in Africa. As MultiChoice, that opportunity is open to us. A proliferation in streaming services have made more choices available to consumers, and as a result, there has been an increase in what we call stacking. Stacking being the number of subscriptions per individual subscriber. This is reflected in the chart on the left-hand side, which shows that only 13% of streaming customers in the USA subscribed to three or more streaming services in 2016. As you can see, by 2022, that number has increased to 67%. On average, people subscribe to over four paid video services today, a number which is forecast to increase to almost six by 2025. If Showmax has an unbeatable content lineup, there's every reason for us to be one of the services people choose to subscribe to. Globally, this increase in choice has seen players significantly increase their investment in content, especially in original productions to drive and attract subscribers. The chart on the right shows this ramp up in content spend over the past two years. All of this, of course, comes at a huge cost if you're not able to either sweat or sell these assets. What we're seeing is that several streaming providers, Disney, for example, and more recently Warner and HBO, seem to be recalibrating their strategy to speed up profitability. Some of the other issues impacting the industry include the need to continually improve the tech and the platform experience, the need for a data-driven, personalized approach to customer management. A demand for live sport on SVOD is actually becoming the norm. This is something we've been focusing our Showmax Pro offering on. Ad-supported offerings are gaining traction, especially among younger viewers who seem more amenable to adverts disrupting their viewing if it means a lower subscription costs. The good news in all of this is that Africa is seen as the final frontier for SVOD growth globally. Penetration in Sub-Saharan Africa is at only 2% of households, and this significantly trails the rest of the world, which has an average streaming penetration of 21%. It's this statistic that is one of the things that most excites us about the opportunity that lies ahead in our region. In addition, some favorable macro trends will further support the exponential growth opportunity. The graph on this page shows that Africa has a large and rapidly growing population, which is expected to reach more than 1.2 billion by 2027. As Calvo mentioned in his presentation earlier, this number is set to increase further to 1.4 billion by 2030. The disposable income of people in Africa is increasing with a GDP per capita forecast to rise to $3,500 a year in a few years from now. Critical to our streaming business, Africa is becoming increasingly connected with up to 100 million connected households in five years' time. That's in addition to almost 600 million individuals with mobile connectivity. We are a mobile continent. It's not only broadband connectivity that's on the rise, it's also broadband affordability. This graph shows how prices for one gig of mobile data have been coming down over the last four years. We've looked at many countries across the world, and the research shows that at a price point of $1 per gig, streaming takes off in big numbers. While that number could well be a bit lower in Africa, what is clear is that our markets are ready to embrace a digital future. The streaming landscape is also changing rapidly, and global players have now turned their sights to Africa. Disney+ launched in South Africa in May last year. Amazon is intensifying its efforts on the continent, looking to launch e-commerce services in South Africa, in addition to a mobile service in South Africa and Nigeria. Amazon is also commissioning more local content. Netflix. Several local players are also active in the streaming space, including Viu and some telcos. The good news is that research shows that alongside the global players, there is an opportunity for a local player like us to lead the way with a differentiated product offering. In line with our history of identifying trends early, MultiChoice embarked on its streaming journey in 2015 as one of Africa's first original streaming services. Today, our service is available in 50 markets across Sub-Saharan Africa. We're proud of our achievements to date, which include being the joint highest rated streaming app in South Africa in the Apple App Store and the highest rated streaming app in the Google Play Store. We also accept payments in more local currencies and on more payment platforms than any other streaming service in Africa. Additionally, the research is citing Showmax as a strong brand with the most local resonance. As a result, Showmax subscriptions have also increased steadily. Over the past two years, we have grown the total customer base by 60% and grown the paying subscriber base by 111%. Outside of South Africa, our market is also growing very strongly off a low base. In fact, it's delivered a 75% growth over the past four years and reported 88% growth year-on-year in F23. Over the last year and a bit, we have also proven the demand for sports, and Showmax Pro was able to grow its customer base by 161% over the past 12 months. This growth has been driven by our shift to a local content focus with great success. We produce high quality, popular original content, and it has become a key differentiator of our service offering. In fact, around 80% of all acquisition can be attributed to our Showmax original productions. Shows like Devilsdorp named Best Made for TV Documentary at the 2022 South African Film and Television Awards. Real Housewives of Lagos was another fantastic success. It launched in Nigeria, but it's also been making waves and broadcast internationally. There are many other local productions that also attracted great viewership and great subscriber numbers, like our recent romance drama called Adulting. Another show, The Wife, an adaptation of a best-selling novel, as well as a documentary, Steinheist. Now shifting gears to talk tech. Over the years, Showmax engineers have provided innovative solutions for content downloads, adaptive bit rates, and compression, as well as low-end device support. We've spoken about our ability to accept payments, and we were also the first streaming service in Africa to understand the power of a mobile-only plan. We're also incredibly proud to offer the lowest data streaming option on the continent. As you can see, we've achieved many great successes on our own. We believe that with the right partner, someone who is as excited as we are about the prospects for streaming on the African continent, we can do so much more. As announced in March, we are hugely excited to have signed a deal with Comcast. Today, Comcast is one of the world's largest media and tech companies. It has made deep investments in global tech expertise and has a best-in-class platform. It also happens to be one of the largest international content producers. Combine this with our unmatched local content production capability, our impressive sports rights, and our ability to sweat our content assets across not just Showmax, but across our entire pay- TV business with access to over 23 million households. This, we believe, provides a very strong foothold from which to take our entertainment business sustainably into the digital future. By joining forces with Comcast, we plan to become the leading platform on the African continent. Comcast have made a 30% investment in Showmax, thus enabling them to scale their platform's reach. Together, we'll offer first and exclusive movies, including popular franchises like The Fast and Furious, Minions, and other award-winning series like New Amsterdam and formats like The Real Housewives. We will offer more local programming in more local languages than any other player. With our sports rights, we will have an enviable content lineup that has something for everyone. Add to that Peacock providing a state-of-the-art and scalable platform, which is already powering other partnerships both in the U.S. and in Europe. This platform will deliver significant benefits to Showmax. It's highly scalable with an extremely large talent pool, which will expand our engineering capacity. We'll have access to their best-in-class tech that can be rapidly deployed, and should we need to, we can adjust or pivot to AVOD or to fast channels. Their marketing technology is designed to help us optimize spend. It will provide an end-to-end view of the customer. From the minute they join, we'll know how they pay, when they pay, where they pay, and what they watch. All of this can increase customer lifetime value through an advanced segmentation and predictive churn analytics. In fact, a great case study of a streaming partnership is SkyShowtime. The successful streaming service launched last year as a partnership between Comcast and Paramount, supported by Comcast's NBCU Peacock. It brought together a collection of the greatest studios and storytellers from Universal Pictures, Paramount Pictures, Nickelodeon, DreamWorks Animation, Sky Studios, and Peacock. Within a short space of time, it's been rolled out successfully to 22 markets across Europe. To start our partnership journey, we've structured the new Showmax entity to drive growth in the most optimal way. MultiChoice has incorporated Earth UK Holdings Limited, a new company that's been registered in the U.K., which will trade as Showmax and in which it holds a 70% equity share. As mentioned earlier, MultiChoice transferred its existing Showmax business to EarthCo, while Comcast, through its subsidiary, NBCUniversal, injected cash for their 30% equity stake. EarthCo will hold a 100% interest in Showmax SAPTY Limited, which will own all the Showmax rights, assets and liabilities in South Africa and the rest of Africa. In Nigeria, however, EarthCo will hold a 79% stake in the Nigerian operations, resulting in Comcast holding an indirect stake in MSA Limited Nigeria of 23.7%. Our board of directors will consist of three representatives from MultiChoice, with additional appointments being made in due course. The senior leadership will be based out of the U.K. and Dubai, whilst operational teams will be located in major markets with boots on the ground. I should say that the agreement does not involve the broadband, wireless or cable video or any other of the businesses of either Comcast or Sky, nor the linear satellite, terrestrial and streaming video businesses of MultiChoice, all of which will continue to operate independently and at arm's length. MultiChoice will, however, provide ongoing business support through its local market expertise, local content production capabilities, its portfolio of general entertainment and local content, as well as the sports rights and back office support. Comcast in turn will provide the licensing of both its Peacock platform and the fantastic content from NBCUniversal, Peacock and Sky. Practically, the way it will work is that Showmax will generate revenue from selling streaming services across the continent. It will incur operating expenses all priced at arm's length, and ultimately generate a profit or a loss at the end of the year. Both MultiChoice and Comcast have committed to providing funding to EarthCo during its investment phase in proportion to their respective shareholdings, and in time, will share in the same proportion in its profits. Let's look at what the picture could be in the years ahead. Through combining our efforts and because of our planned product and price offerings, we expect a step change in customer numbers going forward. The graph shows the acceleration in customer numbers that we anticipate going forward. Speaking to affordability and content preferences of the African customers, we actually expect to have 3x more customers than initially envisaged. Joining forces and sharing costs also allows us to ramp up our investment in local content. This, as I have said, is our key differentiator along with sport. We expect the production of original content to increase materially over time. In 10 years' time, we expect to produce 10 x more local content than we do today. This is what will help us grow. Which means we'll also need to step up our investment in Showmax in the short term. We expect the standalone entity to have a similar three to five-year J-curve, which is similar to its global peers. At the MultiChoice Group level, part of the investment cost will, however, be defrayed through the 30% minority partnership. The recovery of licensed content and service charge, which will be charged into the venture. MultiChoice Group's investment J-curve would be somewhat shorter and front-loaded in 2024 as well as the front part of 2025, mainly due to platform costs. Tim will also provide more details in his capital allocation presentation today. To conclude my presentation, let me recap once more some of the key points. Africa is the final frontier for SVOD expansion, and Showmax will be one of the key drivers of our group's future growth and profits. Our partnership with Comcast provides the strategic levers to succeed, we have set ourselves aggressive growth targets over time. We're aiming to generate revenue of more than $1 billion after five years. We've set ourselves a break-even target by FY 2027, we're targeting EBITDA margins of around 25% and free cash flow margins of around 20% at scale. In short, we are focused on becoming the leading streaming platform on the African continent. Africa is our home, it's our priority market, we're very excited about Showmax 2.0, which will provide the easiest access to the best local content, the best sports, and an unmatched slate of the world's best international programming. Thank you very much. Are you not inspired? Great conversation and presentation by Yolisa highlighting just exactly how Showmax remains focused on being a key leader in video streaming on the African continent. I must tell you that we will be reviewing some of the amazing work that Yoli together with her team has been doing within that space. Of course, there's an opportunity for you to submit your questions to engage further, to fully understand what this new journey of Showmax 2.0 does look like. Before we get there, let's watch a short video now from Andrea Zappia, Executive Vice President and Chief Executive Officer for New Markets and Businesses, Sky, to give us some perspective on their view of the partnership with Showmax. Hello, everyone. I'm really convinced that we have all the elements to win in the coming years in this critical sector for our industry. We're gonna do it because together we are putting together the elements that can create really a winning product. First of all, I think we are launching this at the right timing. The connectivity is building now, is becoming more affordable, and the global players are not fully deployed yet into the continent. The second reason is that together we can put and give to consumer a wonderful content proposition. The combination of MultiChoice incredible ability to create wonderful originals, local originals for the different countries and regions of Sub-Saharan Africa, combined with the great NBC and Sky international content will offer something unique to the viewers in the continent. The same time, the addition of the so broadly loved Premier League will attract the fans in a unique way. The third element is our capabilities. We are very proud to bring the Peacock platform, a platform that's proven to be incredibly strong and loved by consumers, both in the U.S. and with applications already with SkyShowtime, another joint venture done by Sky in Europe. At the same time, instead, we are going to build on the great MultiChoice capability in the go-to-market in Africa, not just the incredible knowledge for the marketing operation into the region, but I was personally incredibly amazed about the work you have done on payments in the continent. It's incredible how many different payment methods you've been able to integrate, and how this has actually helped consumers to choose the way they wanna pay to access great entertainment. These three reasons make us super confident we're going to do a great job together and create the winners. With this project, we're also strengthening our partnership. You already know that a short time ago we announced the launch of Glass in South Africa. Sky Glass has been and is today a terrific success in both the U.K. and in Italy, and we are very proud that MultiChoice have chosen that technology to enrich the aggregation experience for the South African consumers. I think altogether we can create something really strong. Listen, I want to conclude by thanking really deeply all the people that have been working on this for such a long time with so much passion. Clearly from our side, what I must say, your side, I've learned more about your company and the... we share really the same ethos, the same values, and this even more than the practical element make me super confident that this partnership, this joint venture, will be successful. Thank you so much for all the work done to get to this place, and thank you in advance for the job we're gonna do together to turn this into a huge success. Today is not a finish line. Today is starting line, and I know together we can drive this to really very strong success. Have a wonderful day. As we've heard, the starting line to so much more success that is going to be created through this key partnership. We've heard from Andrea Zappia, who's joining us live from London virtually to participate in today's conversation, and we've got Yolisa Phahle joining us here in studio to give us some insight into what has proven to be a very popular conversation, as there's quite a number of questions that have come through. Welcome, Yoli. Really excited to have you with us, and of course, even to Andrea Zappia, who's joining us as well from London. Perhaps, Andrea Zappia, let me start off with a question that's being addressed to you from some of our investment members and community members who actually might state their concerns that, hold on, the golden era of streaming might come to an end. Help us understand what your perspective is on this one, and, where there still might be opportunity in this particular collaborative effort. Thank you, Gugu, and good morning to everyone. It's great to join this important day and conversations with you all. I think it's a very good question, but the reality, I'm not sure this is the right way to look at the situation we are in in the market. It's like every other trends, streaming has seen its first phase of cycle with rampant growth. Now it's starting to behave as a more mature market, still with great margin for growth, but in a different way. Now, 22 million people in the U.S. today have Peacock, and the number is growing all the time. In Europe, Sky not only is keep on growing with NOW, but is now pivoting from satellite to streaming, having launched recently two products with Sky Glass and Sky Stream. I think there is no doubt that, you know, the long-term trends, and by 2030, if you want to pick up a date, I mean, streaming will be the main way that people will use to watch content. Both Sky and I think overall Comcast believe that the future of streaming is really important. In September 2022, for example, we have successfully launched in 22 European markets, SkyShowtime, as Yolisa mentioned earlier, in partnership with Paramount Global. We launched all these markets in less than six months, building on our platform capabilities. This allowed us to expand into new countries where we haven't been and we have been looking maybe over time in the past, and streaming allowed us to do this quickly. Here in Africa, our partnership with MultiChoice will create a unique winning offering. I think we are in a different phase of streaming rather than an end of a golden age. Market growth is still there, and I think that Sub-Saharan Africa is a key growth opportunity for us. As you mentioned, it's an evolution, a change that's taking place, but also one that is prioritized on partnerships. What we're seeing from members of the investment community is that they want some insight as to what this partnership will unlock. Andrea, the first question addressed to you, what did Comcast see in MultiChoice that made it enter this particular partnership? Give us some insight there. Well, let's say a good one. Listen, MultiChoice is first of all a great business. It's, it is and has been for a long time a great leader in its region. And fundamentally, Sky and MultiChoice share a common ethos, and we are really common values. Before entering the specific elements that we believe make this joint venture a winning one, I'll say that that would have not happened if the two companies would have not had this common ethos and value. Now our partnership really has tried to put together the best. And again, Yolisa mentioned this before, and we have believed into this from day one of the conversation we had. We think we have fundamentally a great chance to win. First of all, because we are entering at the right time. The Sub-Saharan market is still, back to the point earlier, immature. Streaming is starting to grow now. Yolisa mentioned earlier about the growth of connectivity and decrease of connectivity cost. The big, big global player has not yet fully developed here. Second, MultiChoice has unique capabilities, and these capabilities, again, mentioned earlier are around the unique content, the ability to commission and produce local content is relevant to the local audience. When I say local, we were amazed about discovering how much and how good the team is able to provide content. It's not regional, it's actually local to each single country and is relevant to those audience. Having, in terms of content, the long-term partnership with the Premier League. In the go-to-market capabilities, where we really are together, we provide, as I said earlier, our platform on top of our content, international content. MultiChoice has the ability to support more payment methods in more currencies than everyone. Fundamentally making it easier for the consumer. If I need to close this amongst the values we share, we share a great passion for the customers. Both companies know the customer better, want to service the customer better, and I think these, the skills, the capabilities we both have make this joint venture unique and give us a strong chance to win. 100%. Thanks for that response. Of course, Yoli, investors also want to hear from your perspective. The question that has been shared here has asked, "Why did you choose to partner with Comcast, given that Peacock is a much smaller platform than the likes of Netflix, Disney, and Amazon?" Give us some perspective here that might add to what Andrea mentioned earlier. Well, I mean, I think Andrea's covered some of the big issues, but if I could say that, you know, we are incredibly proud of our content, our local content, which we know is going to be the big differentiator for our market, along with the sport. What we were looking for was firstly a partner who was as excited actually about the opportunity, and I think, you know, we all know, and we've spoken about how we're at this inflection point, and that streaming will take off. There's no going back. I mean, it is the future, and we will ride into the future with the right partner. In Comcast, we found an incredible platform, a platform that has a strategy, actually, to syndicate. They are already providing a platform for SkyShowtime. They have an engineering team of thousands who will continually be working to improve the capability of the platform to make it a wonderful place for the consumer to actually find our great content. It's really about the platform. It's really about their strategy to have a platform that can service other partners sustainably. Secondly, I think we have to come back to content. NBCUniversal are one of the leading content producers in the world. They make fantastic programs, great series, amazing movies, and these movies will now be first and exclusive on Showmax. To give you an example, I think we've spoken about The Fast and the Furious, about Minions. Even franchises like The Real Housewives of Durban or Lagos. These are formats that belong to NBCUniversal. We will now have access, guaranteed access to this incredible programming. Many, many reasons and. I think, you know, really, we can work with Comcast. We have worked with them, and they are incredibly excited about this opportunity. Pertinent that you mention content, right? We know that content is key- Mm. -especially with regards to the partnership with Comcast. The question that has also come through from one of our investors asked, "Showmax seems to have quite limited international content in Sub-Saharan Africa. When do you anticipate this partnership with Comcast to reflect the additional international content and some of the themes that you actually alluded to a moment ago? Well, that's a really, really good question, because I think up until this point, we were spending most of our time and effort really promoting the incredible local content... Mm-hmm. That is what brings us subscribers. Mm-hmm. When we look at the top 10 acquisition drivers for Showmax, it's our local programming. The in-detailed research that we've been doing over the last 12 months, with Comcast, has also shown that audiences want fantastic international programming. Mm. Now, with this increased investment and with the guarantee of this content, we will be launching, relaunching Showmax and marketing movies, marketing international series. Right. We've also got great kids programming, coming through DreamWorks, another Comcast company. All of the questions that we're hearing about why are we not talking about more international content will be addressed, and we certainly are gonna have not just great NBCUniversal programming, but, you know, HBO, Warner, Sony. In fact, if you think about it, we will have international content first and exclusively on Showmax from 80% of the world's biggest international producers. It's gonna be an incredibly strong lineup: local, sports, and international content. Sports as well? That sounds significant. Football. We're talking here really about the EPL. Yes. We know that is one of the biggest leagues in the world. Africa loves football. For the first time, people will be able to have an SVOD subscription. Mm. -to, the EPL, and more details around that will be coming over the next few months. This ties into another question, Yolisa, that you have received from one of our investors here, which highlights the opportunities in streaming, how there's more content that will be available. The question asks: what is the risk of Showmax cannibalizing the linear DStv business, given that there's a similarity in terms of the content offering? Well, firstly, Africa, Sub-Saharan Africa is a vast market. What we do know is that, you know, in relation to penetration of pay- TV in Sub-Saharan Africa, particularly outside of South Africa, there is still a long, long runway ahead of us. We're nowhere near the kind of penetration levels, in Africa that we have seen historically in other parts of the world. 2% has been mentioned, if I'm not mistaken. Well, 2% of SVOD. Ah. Which is very low, we actually know that there's big growth there. In relation to the cannibalization, we really do believe that pay- TV will still grow, particularly outside of South Africa. SVOD is a nascent business. Mm. We're here at the start. We've got great partners. We've got a strategy and a business plan that is sustainable. We're offering different things. It's different platforms, different content, something for everybody. Mm. We're quite confident that these two businesses will grow. Sounds phenomenal. Of course, an opportunity to make sure that we are, at the cutting edge of growth as well as the development of a new key, sector here. There is a question in terms of revenue streams, right, and sustainability and the contribution to profitability for the group. Andrea, this is a question that is actually addressed to you. The question states: ad-supported streaming seems to be the latest strategy for streamers. Will you be following this approach? Let me say first that what we're starting to see, and I think we're gonna see more, is that streaming services will adopt some of the key elements of the toolkit that drove the growth in revenues, particularly of premium pay- TV. These are clearly advertising and, for example, sports, which we have already included in our launching proposition with Showmax in Sub-Saharan Africa, as Yolisa said, with the EPL. Advertising is another one, and the combination of these two will, and more, more to come, allow to monetize better the reach that streaming allows to achieve very quickly, more than other business models. Monetize this reach faster through advertising and also segmenting the market better. Some of the players introduce actually advertising to create a lower price tier and therefore expand also the ability for consumers to join. Some have done it together with cracking down on password sharing, again, to offer an alternative to those customers who are sharing a password before to have the service at a lower price. From our point of view, this is something which will be important. Yolisa will be better than me at explaining that, but it seems that the Sub-Saharan African market is not yet big enough in advertising to leverage this properly. The great thing of having a platform like Peacock and with thousands of engineers working on it, as Yolisa mentioned earlier, is that we have the joint venture will have this opportunity later on. At the right time, we'll be able, if that is going to be the right thing to do, to access and launch a service like that. Got you. Andrea, this does speak to a follow-up question that we have here, especially when it comes to the sustainability, revenue, forecasts and expectations. The question states: the streaming model, business model seems to be generating lower returns than traditional pay- TV. Why double down now? Listen, that is true. Streaming has lower ARPU and lower margin, but also allow to scale faster, reach quickly huge audiences, and with lower customer acquisition cost. This will be, like I said earlier, the main way people will watch their favorite content going ahead. If you want to expand your geographical reach, if you want to monetize your content better, expanding to streaming is basically critical. I would also however add that at Sky we believe that the future is not just the apps, that's why, as consumer tend to use and adopt more and more apps, providing the best aggregation experience will be critical. At Sky, we launched Sky Glass first and this year Sky Stream, because we think that providing that state-of-the-art experience will allow us to to win over time and expand also, our margin. The combined capability of Sky and Comcast, we have a new technology also, MultiChoice will benefit from the launch in South Africa. I think going forward, you'll see a combination of aggregation of apps, and providing the best platform will be fundamental to win, as well as D2C streaming, solutions. Yolisa, maybe if we can come to you as a build-up on the global and international theme that Andrea has said regarding the ad structures and of course, the level of competition internationally, but of course that the opportunities still exist. Help us understand from a local point of view. How the economics of Showmax makes sense, and how Showmax does contribute to the financials essentially of MultiChoice Group in order to be a key priority and lever in terms of investment opportunity, yeah. Yeah, I mean, I think that's a good question, because we are seeing globally, SVOD operators recalibrating and re-looking at their strategy. At MultiChoice, I guess we're very fortunate in that we have a pay-TV business and we have an SVOD business. Mm. When we acquire rights, whether it's international content, or whether it's sport, or whether we're commissioning programming, we actually are able to amortize the cost of that content because we have a very sophisticated windowing strategy, which means that, you know, one business does not carry these content costs alone. Mm. I also think it's important to realize that our market is very different. As we say, local content is what brings us subscribers. You know, we are producing local content in incredibly innovative ways. We're able to really compete with co-productions. You know, incredibly proud of big shows that we've recently completed with the BBC Studios, Fremantle International, and, you know, the STUDIOCANAL. That way, we're really able to get, like, spectacular shows, but at a fraction of the cost. Then that show can exist on Showmax as a first and exclusive, and can later find its way into pay- TV or the reverse is also true. It is about scale, essentially. You know, this. You need the economies of scale to make this business work. As we've heard, Africa, Sub-Saharan Africa is at the beginning of its streaming journey. It is a vast market. We are here with a strategy which is well-differentiated from our competitors, and very confident that we are gonna be able to build a sustainable business. Well, we are certainly looking forward to it, and of course you've described it so aptly as Showmax 2.0. Give us an understanding of timelines, deadlines, what we can expect in terms of launches, and, as you've already highlighted, adding some color to the content variation. There will be a big launch. Mm-hmm. We're aiming to make sure that Showmax 2.0 is out there, before the end of March 2024. Right now we're producing content, we're acquiring content, we're thinking about the packaging and the pricing, we can't wait to tell everybody more about it when we're ready. I'm going to sneak one more question right? Investors want to know all about those costs, packaging, and pricing. It's a difficult macroeconomic climate in South Africa specifically, which is one of your more mature markets. Mm ... versus the rest of Sub-Saharan Africa. How does that play an influence in terms of your pricing models? We've always said that we wanna make sure that we've got something for everybody. Mm ... at a price point for everybody, and that remains true. We will share those details later. Equally, you know, it is about making sure what we do is sustainable and makes business sense. Yeah, I mean, the economy is tough. Mm. I think the good thing about Showmax 2.0 is that we are investing in our markets, we're investing in our industry. Mm. We are creating jobs, and we are gonna help, our audiences continue to enjoy the best entertainment, the best information, and as you've said, at a price that makes sense for them as well as for our business. 100%. Yolisa, Andrea, such a delight speaking to the both of you. I think there's a lot of excitement about the particular divisions that you run. As you mentioned, with the SVOD literally at the cusp of being birthed, and of course, changing and adapting to the current market dynamics. Thank you so much for your time today, Yolisa. Really appreciate it. Looking forward to Showmax 2.0. Thank you. Indeed. Andrea, thank you so much for your time, joining us live from London, sharing a great perspective on the global dynamics and of course this key partnership that we see. Thank you again, Andrea. Thank you so much. Great joining you. Have a great rest of the day. Thank you. Well, we shift gears now to talk about Kingmakers. Yep, another vertical of the MultiChoice Group that does promise great opportunity, not only in the South African market, but right across Sub-Saharan Africa. When this particular partnership was first announced, of course, many key players actually questioned how sustainable this would be, as it was the first move and first investment outside the traditional pay- TV platform. This garnered a lot of questions from members of our investment community. Despite that, it's performed really well since its launch. As Calvo highlighted earlier in today's session, we're preparing for a launch in South Africa really soon. Well, let's hear from the man who's at the helm of KingMakers, the CEO of KingMakers, Kim Reid, who's up next to take us through their strategy, growth, ambitions and of course what we can anticipate. Thanks, Gugu. Hello. Welcome to the first opportunity we've had to speak to you about KingMakers, a business focused on sports betting and gaming in the African market that launched some four years ago. The contents today will introduce us and aim to give an overview of what we believe the opportunity is in the African market, our business model, our products, our relationship with MultiChoice, and of course, some financial numbers. Our vision is to create the African home of sports and gaming entertainment while contributing to the communities in which we operate. Our mission is to entertain customers by providing compelling, immersive, and responsible sports betting and gaming products with world-class customer service. In essence, we're looking to expand our platform and presence in the African continent with customer focus and technology at our core while leveraging our MultiChoice relationship. Today, we generate approximately $1.6 billion in stakes and are a top 15 global sports betting property. We're operational in Nigeria and Ghana and aim to launch the South African operation towards the end of this calendar year. We operate under several brands, BetKing in Nigeria. We will launch under SuperSportBet in South Africa and have a free-to-play offering in Ghana called SuperPicks. SuperPicks also operates in Nigeria and South Africa. To support our operations, in addition to the people who are in country and more focused on in-country operations, we have support structures in Mauritius, London, Dubai, and Malta. The support teams that are located outside of their in-country operations are focused on engineering, product, legal, compliance, finance, and marketing, amongst others. Our management team has evolved over the past four years and are now led by a diverse, talented group of dedicated executives with solid sports betting, gaming, and consumer internet experience. My background is firmly consumer internet. Having founded and built the Takealot Group over the past 13 years, you also may be aware of my previous positions with MultiChoice and Naspers over the past 23 years. Jas pal, our CFO, comes from the Entain group while also working in financial services, travel, and FMCG. Ronnie, our COO, has deep sports betting and trading and gaming experience, having been with Flutter, Sky Bet, and Sporting Index. Tom is a seasoned CTO, having been at William Hill and McKinsey and worked in many industries that require systems that process high volume transactions. We have other executives who have a mix of both consumer internet and sports betting knowledge coming from Sky Bet and other similar companies. We believe there is a substantial opportunity in the African market, evidenced and driven by various factors. Our data shows that GGR growth in the African continent is faster than others in the world at approximately 17%. That's on a CAGR basis. If we look at the different factors driving this growth, regulation, at some times a moving target, is largely an enabling factor. GDP growth in the continent remains strong, and internet penetration, largely enabled by mobile networks and of course, smartphone penetration, continues to grow. Looking at the Sub-Saharan market, we see strong growth trends and predictions for both online gaming and betting, with double-digit CAGR growing between 2021 and 2027. When compared to the large European markets, we also see that there appears to be room to grow the betting and gaming spend per head, with many of the 2022 spends per head numbers on an African level are now similar to those in 2013 and 2017 in developed European markets. We cannot ignore the fact that there is already existing competition in African markets. Nigeria, South Africa, Kenya, Tanzania, and Ghana all have existing competitors who have gained varied success. We see that companies that have a focus on building a local brand with a local flavor to the product offering are gaining the most success. Regional players are also having some success, while the global players have more limited success with some exceptions. There is a mix of retail and agency, but the future is definitely online and mobile. Today, our business model is a mixture of channels and products. The online channel will be our major focus, with mobile being key. We have, however, built a strong brand and presence in Nigeria using the agency channel, a physical channel with a diverse network of entrepreneurial agents that own and run physical shops catering to the communities in their local areas. This channel will remain core to our success in Nigeria, and we will continue to refine and nurture this channel. Today, we provide both sportsbook and virtual products online and in agency. Sportsbook products are based on live sporting events, with football or soccer being the dominant sport, while virtual is a combination of virtual football matches and dog racing. We will continue to expand our product offering in the various markets with casino and other games, depending on the markets and regulations. It is important to note that virtual and casino products have a lower but predictable margin or hold percentage. The outcome of sportsbook is not controllable as it is a result of a real-life, unpredictable event. Margins, therefore, experience short-term volatility but average out in the long run. Understanding our income statement is fairly simple. Stakes are the amount we take from the users betting on the platform. We then get to gross gaming revenue, or GGR, as we call it, which is stakes less the players' winnings. We deduct bonusing, which is a marketing incentive we give to players to bet on the platform. These bonuses have different flavors and T's and C's and are developed by our marketing and trading departments. This gets us to net gaming revenue or NGR. We deduct the variable costs that are all largely a factor of GGR and NGR that include things like agents' commission, betting taxes, software fees from third-party providers, and bank and payment charges, resulting in a gross profit. Gross profit less fixed overheads gets us to EBITDA, after which we deduct depreciation and amortization, interest, exchange losses, and taxes to get to profit after tax. Some of the KPIs that we measure include the number of agents we have in country that have an agency network, the average wager per agent, the average revenue generated per agent, the number of monthly active online users, average wager per online user, and average revenue per online user. Having recently come on board and established a new management team, we undertook a review of the markets we were in, the regulatory and tax environments, the market potential, and our ability to execute in the markets, and decided to change the focus for now with the intent of focusing time and capital allocation on initial markets we believe have the most potential, while pausing certain others. This has resulted in us pausing all operations in Kenya and Ethiopia and focusing our attention on continuing to expand our position in Nigeria, launching our South African business and continuing with our free-to-play offer in Ghana. At present, our intent is to continue with the strategy of focus and capital allocation for the next 24 months while we execute in these markets. The current short-term focus in Nigeria, South Africa, and Ghana in no way dampens our ambition of expansion into additional markets, but only when we believe the market conditions are satisfactory and we're ready to do so. We will premise our expansion and execution on the key pillars of producing a superior local betting product, simple, fast, and reliable user experience, a customer-first approach, and then led by mass entertainment brands that encourage a large sustainable base. All of this is enabled by our continued relationship and integration with the MultiChoice Group, a product and tech-led organization, responsible gaming bias with strong CSR projects, and a culture-led business that employs the best people. We continue to focus on improving our products to our customers. In Nigeria, we have a comprehensive sportsbook product, a market-leading virtuals product that handles in excess of 13,000 bets a minute. We plan to expand our product portfolio to enhance our customer's experience on a continued basis. For the South African launch, we've spent time analyzing the market and the competitors. We'll launch a compelling offering that competes with the best under a market-leading brand, SuperSportBet. We have a proven record of product improvements in Nigeria with the evolution of the BetKing product, its experience, and plan to continue to do that. Our focus for both South Africa and Nigeria is to provide the customer with a stable, diverse, and innovative product offering, and a strong, recognizable, and trusted brands. The MultiChoice Group provides us with many opportunities to leverage their strengths and existing assets while complying with any necessary regulation. Opportunities exist in many areas. Leveraging the existing brands, SuperSportBet is a good example of that. Using the existing databases where legally possible to access a customer that is ready to participate on the platform at a low cost. Integrating into existing content, both in broadcast and online. Lastly, expanding what we have done with SuperPicks to date through tighter integration, much like we've seen with Sky Bet and Super 6. There are opportunities, especially with existing and future digital content produced and maintained within the MultiChoice Group that we can use to amplify our platform and increase conversion and customer acquisition. Many of the lessons can be learned from Sky Bet and used in our business. On to the numbers. Online active user growth has been strong, with a compounded annual growth rate of 46% since 2019. We've seen a significant increase in bet slips per month, increasing from 46 million a month in 2019 to 141 million a month in 2022. This is a testament to our ability to scale the platform. Net gaming revenue has shown strong growth since 2019, with a 53% compounded annual growth rate, while stakes have shown similar trends with a CAGR of 59% over the same period. EBITDA margins were positive in 2019 and 2020, but has since been marginally negative as we invest to scale the platform and teams to be able to support the expansion of the existing businesses and prepare the platform to be truly Pan-African ready. I'll finish off today with a focus on staying true to our vision, which is contributing to the communities we operate in while we build out our business. We have many plans still to execute here, but we've already executed on this in Nigeria, and you will see from this slide that many people and organizations have benefited from this to date. I'd like to thank you for taking your time to listen to our story, a story that has only just begun, and one that has many chapters still to write. Thank you. Many chapters still to write, right? That's exactly what we're going to find out more about because this is certainly a very exciting division of the MultiChoice Group and, of course, a new key investment. Of course, Kim joins us in studio to give us some insight into the details behind the numbers. We've brought Tim back, right? The numbers guy, to give us some insight and maybe just provide some adult supervision for this conversation. I'll do my best. On that note, Tim, since we have you here, this has obviously been a very key, deliberate, acquisitive drive by MultiChoice Group to actually invest in KingMakers and have Kim at the helm. This is very different from just deciding to start a betting and online platform independently. Help us understand the rationale behind this investment. Well, the interesting thing is that, before we decided to make the investment in KingMakers, we actually spent probably close to a year, evaluating whether we could do this ourselves. Wow. After a year, we started having some discussions with the KingMakers shareholders and the management team, and we realized that this just wasn't an area that we really had the skill set. The speed to market, the ability to kind of roll out a platform and really understand, you know, things like odds and, you know, how you set those. You can really be taken to the cleaners financially if you don't get these things right and you don't have a really experienced team behind you. Having tried and having looked at that and looked at our ambition relative to, you know, the KingMakers', management team's ambitions, we realized that it was actually way better for us to invest rather, and that's how we ended up, you know, making that decision. incredible story and of course background to it, but I'm keen to understand, there's a lot of competition in the market, you could have partnered with anyone else, and also chosen to have someone else other than Kim at the helm. Help us understand the decision behind KingMakers, and of course the partnership with them, having Kim at the helm in terms of capability? Well, I think the most important thing was, apart from the financials which worked out, you know, do we resonate with the shareholders and with the management team? Without that, you know, I think Andrea mentioned it in one of the earlier Q&As, it's about the values and the ethos. Do you really kind of, you know, gel with the partners that you wanna work with? The only way that this partnership works is if you really make a significant effort from both sides, that means you have to work closely together. This is only gonna work, you know, as a bigger than the whole, or bigger than the individual sum of the parts, if both teams are really working together and exploiting the strengths from each of the different parties. When we did that assessment, Kim was a shareholder at that point, wasn't the CEO at the time, but we looked at the management team, we had long discussions with the shareholders, and we felt that we had that camaraderie, we had that connection, and we had the similar value system and vision for what KingMakers could be on the continent. Because that aligned closely with what we were doing in the linear business, that was something that we really resonated with. Yeah, 100%. Kim, you've got a wealth of history and background in terms of e-commerce as well as online retail in South Africa and, of course, opportunities in Sub-Saharan Africa. Help us understand the rationale behind KingMakers and how you believe it can be successful in such a tight market like South Africa. Look, it's larger than South Africa, so South Africa is just one of the opportunities that we'll execute on by the end of this year. I believe it's an exciting market. You know, getting into markets that are growth markets and being able to build businesses, is pretty much what I enjoy, and certainly the team that we've assembled enjoys as well. We see those aspects in this business. We believe that there's an opportunity Pan-African-wise to grow a sustainable platform which, you know, will build value for both the shareholders in KingMakers and of course the shareholders in MultiChoice. I think the other thing that's also very exciting for us is the fact that we have MultiChoice as a substantial shareholder, which allows us to leverage many of the assets and actually play off some of the playbooks that are in the market, and I'm referencing really Sky and Sky Bet as one of those playbooks. Got you. We will continue to deep dive into some of the questions that have come through. In your presentation earlier, you mentioned pausing in certain African markets, and some investors do want to know, what does this mean? Does it have a negative impact on the value of the business overall, and of course the strategy in terms of the rollout? Sure. We're an entrepreneurial business. If there's one thing that I can tell you that I learnt in my time at takealot.com is you consider and you reconsider your assumptions on an ongoing basis. I came into the seat roughly in August last year. Have assembled what certainly we believe is a very strong management team. The first thing we did was we looked at the aspects of the markets, how we were competing in the markets, the regulatory environments, the tax environments, all those types of components that are important to building this business. We also looked at capital allocation and where we think the capital allocation needs to be to leverage what we have and where we want to be. That process ended up in us deciding that we're going to continue growing our Nigerian base, which is doing particularly well, launch in South Africa, which we aim to do at the end of this year, as well as continue our free-to-play offering in Ghana. What it also meant unfortunately, was we were going to close down Kenya and Ethiopia. We've closed down those two markets. We've absorbed the costs. There's not much of an impact on our valuation as such. you know, Tim can speak more to valuation than I will. Essentially the value that lies in this business today is Nigerian-based, which is performing particularly well, and again, the opportunity that lies in South Africa and elsewhere as we roll out in other parts of the continent. Got you. I guess speaking of the rollout in other parts of the continent, we understand that the models are very different, right? This does speak to a question that some of our viewers actually have in terms of understanding, you know, how does the gambling business like KingMakers also deal with ESG issues, which are societal, environment, and of course governance issues, which remain very key for investors overall? ESG is always an interesting question to answer in a business like ours. I think the way to answer that is really to look at what we're trying to achieve. We're a mission-based company. Our mission is to provide entertainment to our customers in the form of immersive and compelling and responsible sports betting and gaming products. Responsible is a key word there. How do we get that right? Well, we look at various systems that we monitor closely. We monitor our customers very closely to ensure that we don't see patterns of, let's say, self-abuse in things like betting frequency and amounts that they bet, thresholds and that type of thing. We'll reach out directly to customers to, you know, engage with them and make sure that they are not overstretching themselves, and in some instances we'll actually off-board customers. You know, it goes on to other things like we run responsible gaming adverts and promos to inform people as to, you know, to be responsible on the platform. Then we also provide services like there's a service that we provide in Nigeria to a company called Gambling Aware, which is counseling to customers if they are facing certain problems, and also a self-limiting service as well, where they can actually off-board themselves. Sounds like a significant move in the right direction in terms of maintaining levels of revenue and profitability and a strong customer base, but you also want healthy customers who understand their roles and responsibilities. Another question that we have, and this one comes to monetizing, making sure that you answer Tim's questions when you're in the boardroom here, Kim, how are you monetizing SuperPicks? SuperPicks is largely a customer acquisition tool. We've used SuperPicks, and we've looked at Super 6 with Sky, how they actually used that and how they really onboarded people onto the platform who weren't necessarily used to sports betting or gaming as such. It's a much more simple way in actually getting onto the platform. You do a simple, you know. It's largely revolved around football, so there could be a basically a choice of six games where you decide who's gonna win, who's going to lose. You put that into the SuperPicks platform. What it does as well is it converts it into a bet slip, and that bet slip then can be used on one of the KingMakers platforms. Offering consumers a simplified manner to actually understand. Correct. how they can access the platform. What it actually does for us is it actually, as I said, is, it's our own affiliate model. Mm-hmm. It reduces the cost of acquisition for us. Okay. That's really the primary use of SuperPicks. Still a lot of growth in that particular division of the business? Look, I think there's growth all around. If you have a look at Africa right now, in this market, Africa is, you know, in the top two, as far as GGR growth is concerned. We believe that there's a substantial market and a sustainable market to address with the offering. Another question that really focuses on the shift to online, which we know is a key enabler in this particular market. The question asks: how will the shift to online impact the KingMakers business, which is predominantly an agent business, Kim? Help us understand this one. Yes. I guess when you look at Nigeria, and if you looked a year or two ago, you would actually say it was predominantly an agency business. you know, BetKing in Nigeria was built out of agencies. What did we do there? We started an agency network with entrepreneurial agents who have shops themselves, physical stores who are addressing customers, and that's built trust in the BetKing brand in Nigeria, and that's done very well for us. Today, the business is pretty much 50/50 agency and online. The future of this product across the continent is mobile and online. There's no doubt about it. We'll still see growth, and we'll nurture that growth in the agency base in Nigeria. The growth will come predominantly from online. You'll see growth in the agency model, but the online side will grow faster. When we look specifically at South Africa, we'll launch an online-only proposition in South Africa 'cause we think that's purpose fit. Online is more profitable than the agency model 'cause there's a lot more costs that you're sharing with your agents in the Nigerian market or in an agency model. We don't believe that we need it in South Africa 'cause we're launching with SuperSportBet, which is a powerful brand, powerful, trusted brand out, you know, out the gates. We don't believe that we need to launch an agency or retail model in South Africa. Time will tell. We may pivot. We'll see how that goes. There's flexibility. We like that because. Yeah. you obviously need to speak to meet the demands and the needs of the market specifically. Tim, this one is for you, and of course, this one really does reflect on the current economic crisis that we're really experiencing, not only in South Africa but really globally. The question asks: given the full price paid for your investment, is there a risk to the value of this business in the current economic climate? Yeah. I think that's a very good question, firstly. I think when we look at the value of the business, we look at this over a long period of time. The operational side of this business is actually tracking very, very well and very close to where our initial forecasts were. I think Kim, and the business is kind of at, I think we're at 97% of the original Actis court payments that were built into that... Well, the earn-outs, for those that are not South African. You know, earn-outs that were built into the original deal. Operationally working very well. Obviously, what has changed, two big things. Because the bulk of this business is coming out of Nigeria, you know, parallel exchange rates are having a big impact on the valuation as well as the discount rates that we're using. We've seen interest rates going up very quickly, and risk rates have all, you know, increased quite materially over time. We are busy working through those at the moment. When we come out to the market with our financial results on the 13th of June as the MultiChoice Group, we'll be sitting down and having a direct look, and we'll address the issue of that valuation specifically at that time. Got you. Kim, this ties into another question that we have here, it actually asks: are MultiChoice or KingMakers considering inorganic acquisitions to accelerate growth in South Africa? I can speak for KingMakers. Tim will have to speak for MultiChoice. Look, we are open-minded, so we'll be opportunistic in the way that we operate this business, much the same as the way we built Takealot. You know, we built that through organic growth, combination of organic growth and acquisition. If there's something that looks like it's worthwhile buying, and we have the cash to do it, we may do it. But we'll be Anything going on right now? You've now? You've got to break some news on this one. No, there's no news, I'm afraid. We're very focused on execution, which is key. Got you. From a MultiChoice perspective? We wouldn't do this on our own. Our investment and commitment is to KingMakers. If we were gonna do anything, it would be through the KingMakers structure. 100%. Well, another question that has also come through. This one speaks to the again, growth and where we are in terms of the investment with KingMakers. Kim, given that you're currently loss-making, how deep is the J-curve for KingMakers? Yeah. When we look at the losses that are incurred over the last two years, they're not significant. I mean, we're -2%, -3% EBITDA for the last two years. Not a significant loss. It's. We have a business plan that doesn't require a deep J- curve, and we're fully funded, so we've got cash on the balance sheets. Most of that cash is outside of Nigeria. The vast majority is actually outside of Nigeria. We're in a good position to grow the business with what we have today. Again, having said that, you know, these markets are fluid and the business is fluid, and you need to be nimble in the way that you think. Right now we have a business plan, we're fully funded, and we believe that there won't be a deep J-curve, and that'll continue, you know, unless circumstances change. Got you. As you mentioned earlier, you're looking at innovative ways of actually attracting the customer base, making sure that they're in the right mindset, but also in great financial health. Help us understand what you've witnessed in terms of the betting behavior or culture in a market like South Africa just before your launch? The South African market is going to be something that we'll have to watch and see. We've got a lot of experience in the Nigerian market, and it's a very interesting market because they have a large appetite for accumulators, which is, you know, not a one or two-leg bet. It's largely a seven, eight, nine, 10. I mean, we can go up to 23 legs as well. Oh, okay. Gotcha. okay. Gotcha. You're betting on various things within a game, so you may be betting on, say for instance, not just Liverpool to beat Manchester City. Did that purposely. Any fans in the room, Tim? Yeah. No offense taken. No, no. Okay. I'm not into those. You know, I'll put one on Everton to beat Man United. You'll beat one. You know, you'll actually do one, two, three, four or five legs. Got you. Also in-game legs as well. So it's an interesting behavior that we've seen in Nigeria. We think, however, that the South African Sorry, the South African behavior will be very similar to European behavior in ways. Mm. Again, you know, we're trying to broaden the base. We're trying to build a large sustainable business through a consumer base that is not limited to a certain market but is a large market. It, it is, after all, entertainment. We'll, you know, we'll watch and see how that behavior plays out, but we're in a almost an extreme market in Nigeria, so we understand the extremes of the business. Got you. Closing off, though, when can we expect this to launch officially in South Africa? The best I can say is by the end of the year. Oh, give us a date. Tim, maybe you can... Unfortunately, this is not my area of skill. I'll have to defer to Kim there. Fantastic. Well, we're excited. A very interesting business landscape for us to investigate and, of course, looking forward to the ongoing support that MultiChoice is providing to KingMakers. We will continue to journey in this new important vertical of the business overall. Thank you so much to you both... Thanks. For your time today. Well, you can keep those questions coming. Of course, just a reminder that the investor relations team will endeavor to reach out and of course share feedback. There's lots that we're certainly looking to gain more insight on, and we've taken in a lot of information, right? The full overview and understanding of the MultiChoice Group strategy, where we are in terms of streaming and video on demand, and of course, KingMakers. It's literally a whole new world of more. In the meantime, let's stretch those legs, grab a refreshment, and of course, we'll be back with a lot more feedback that we'll be able to share with you on the other side of this brief break. That also means that you don't need to hold back. Share some of your thoughts, and do this by tapping onto the feedback tab, which is at the top of your screen, and tell us what you make of today's conference so far. Insights, interactions, questions, and engagements, we really do look forward to hearing your thoughts, and we'll be sure to interact and engage with you going forward. For the moment, though, we have about 10 minutes for a quick breather. Do be mindful of watching and monitoring your screen for the countdown timer 'cause in no time, we'll be back with more. Welcome back, everyone. We hope that you're getting your seats comfortable and ready for more information. As we heard earlier, fintech is attracting a lot of investment in Africa, and Moment is no exception. CEO Joel Yarbrough is here to talk us through Moment and its capabilities. Hi, I'm Joel Yarbrough, CEO of Moment. Gugu, thanks for the introduction. I've been invited here today to talk about Moment, our platform that provides a new payment service for all of Africa. Today we're going to talk about what is Moment, the Africa opportunity, and why it's so attractive, what we're solving for, and lastly, our business model to give an understanding of how we'll make money over the long term. Moment is a new payments company designed to help businesses and individuals enrich their lives by connecting Africa to the world. We're building on top of a proud payments tradition. MultiChoice has entertained, informed, and empowered African communities for almost 40 years. MultiChoice has also built Africa's widest payment network, operating as a bridge to digital payments for millions of people. MultiChoice provides payments in over 40 countries with $3.5 billion of annual volume. We've engaged cash and digital payments for over 23 million households. It's also allowed us to create jobs for over 27,000 micro-entrepreneurs and built an extensive advertising ecosystem. Moment builds on this proud tradition and connects African businesses and consumers to each other and to the world. Our mission is to help Africa grow faster, to maximize her human capital. Africa is the world's fastest-growing and youngest working population and will be until 2050. To accelerate small business incomes. There are over 44 million small businesses that are mainly in the informal economy, are prepped and ready to grow. Africa trades about $1 trillion with the world today, but only 14% of it is actually exports within Africa. We think we can do better. How do we build for Africa? Firstly, we're gonna build the broadest Pan-African payments network for businesses and consumers. We're also gonna accelerate Africa's migration from cash to digital payments, then we're gonna help Africa grow its global trade, expand the incomes of those small businesses across the continent, and help consumers spend and save their hard-earned money. Before we get there, it's worth highlighting how Moment came about. Moment is a joint venture between MultiChoice, Rapyd, and venture capitalists like General Catalyst. MultiChoice is Africa's leading entertainment platform. Rapyd provides global payments in over 130 countries, and General Catalyst, Entrée Capital, and Raba know deeply how to scale fintech businesses globally and in Africa. We're gonna talk today about trust and inclusion gaps that exist in Africa, the youth boom, urbanization, expanding entrepreneurship, Africa's going mobile, the growth of digital payments, trade expansion, and remittances in Africa. These pillars form both the problem and the vast opportunity that have led to the creation of Moment. From a trust and inclusion standpoint, 90% of retail transactions today are still paid in cash, as you well know. 350 million or more Africans are underbanked, as a result, they pay far too much for far too little. 85% of Africans are employed in informal economy, which primarily locks them out of credit and better services. For small businesses, they don't even like taking cash because of the propensity for it to be fake or otherwise compromise their business. There's a youth boom going on. Africa is the only place in the world where female fertility rates are still growing, with a fertility rate of 4.7 births per woman. The median age in Africa is 20, and the 1.4 billion population we have today is gonna grow to 2.5 billion people by 2050 as a result. Along with that growth, the 800 million Africans in the working age population today will grow to be 1.7 billion by 2050. Africa will truly provide the workforce for the world. Urbanization. 42% of Africans live in cities today, 590 million people. By 2050, that's gonna be 60% of the population, 1.3 billion. They're moving to cities for better jobs, and a lot of those jobs are digital-enabled. From an entrepreneurship standpoint, 85% of those 44 million small businesses work in the informal economy, and average monthly salaries are only $770. We can do better. Africa is going mobile. There are 620 million phones operating in Africa today. 317 million of them are smartphones, a number which is growing 12% year-on-year. This is despite the fact that African data is still expensive, 65% more expensive in Sub-Saharan Africa than the same gig will cost you in Western Europe. Of those 620 million phones, 200 million of them have actually transacted with mobile money, spending over $700 billion in 2021, a number that's growing 23% year-on-year. Mobile money has created some extremely large businesses. 80 million mobile money holders on The Orange Platform, 57 million on MTN MoMo, 51 million on M-PESA, and almost 26 million on Airtel Money. There's also a real-time payments boom. By 2024, 25 out of 54 African countries will have real-time payments, driving a shift from cash to digital and leveling the playing field for businesses. Real-time payments around the world have driven transactions up to 75 transactions per person a year in places like India, Brazil, and Singapore. Trade expansion. There's $85 billion of intra-African trade in 2021, 3%-10% of that trade is creamed off to intermediaries, making African trade extremely expensive and much smaller on a regional basis than it should be. Compared to places like Southeast Asia, African GDP is only 3% intra-African, versus Southeast Asia, where it's 25% within the region. On a personal remittance basis, remittances are growing only 3% year-over-year, and $48 billion coming into Africa from overseas and $14 billion is going across borders within Africa. The number is much smaller than would normally be expected. If you look at the cost to send $200 from the U.K. to India, it costs 3%. Send that same $200 to Africa, costs 8% of the money. It's 170% more expensive, and that's a tax on hardworking people around the world. From a market size perspective, the market size is awesome. There's a $3 trillion market in African payments today. On the consumer side, it's $1.5 trillion. On the business-to-business side, it's about $1.2 trillion. The retail point-of-sale market, spending money in stores is around $900 billion. Online e-commerce, another $60 billion. Mobile money and remittances together add up to around $770 billion. There's another $40 billion of alternative lending through digital platforms around the continent. On the business-to-business side, global imports contribute $610 billion, exports, $560 billion, and intra-African trade, another $85 billion. The opportunity is vast to better serve the payments market across the continent. What's Moment going to do about it? We're gonna build the broadest Pan-African payments network. We're gonna accelerate the shift from cash to digital. We're gonna reduce those trading costs within Africa and from Africa to the world. We're gonna expand income opportunities for small businesses, and we're gonna help consumers spend and save their money better. The payments network will power payments across more than 40 countries across the continent with over 200 locally preferred payment methods. We'll be enabling businesses to collect those funds, disperse them, pay their suppliers and partners, and manage the risks of cash. The Moment solution supports mobile money, cards, bank transfers, and wallets, and we've built this network with Africa's leading fintechs, its banks, mobile money providers, leading retailers, and payment schemes across the continent. It's enterprise scale, leveraging more than $3.5 billion of MultiChoice volumes that will soon extend to businesses around the continent and will offer cross-border settlement capabilities to help businesses get paid regardless of where they sit in the continent or overseas. We are intent on accelerating the shift from cash to digital. Through real-time payment partnerships, Moment will have launched in over 20 countries in Africa by 2023 and 2024 instant real-time payments. This enables consumers or businesses to instantly make money or get paid. It reduces the working capital costs for businesses and reduces their need for lending by ensuring they have immediate access to their funds, and it makes sending money across borders instant in over 16 markets. We're gonna reduce Africa's trading costs with the world, growing that $1 trillion of trade and enabling local payments in 130 countries so African exporters can get paid internationally. We'll offer virtual bank accounts overseas and cover over 40 currencies to accelerate large volume payments coming back home. We're gonna unlock payments for merchants and offer faster payment discounts as they pay their suppliers more quickly. Our solution will reduce their foreign exchange costs by up to 70%, will enable overseas sellers to tap into the African buyer base and serve them better by accepting African payment methods for goods that they import. Moment brings enterprise-scale treasury management and liquidity capabilities to the table, ensuring African businesses can grow even faster and have immediate access to their capital. For small businesses, Moment provides deep payment tools, inventory capabilities, and unlocks financial services for micro entrepreneurs and SMEs. We'll help people get paid in person or remotely via QR codes, mobile money, bank transfers, and cards, help them make payments and sell digital goods, provide a bottomless catalog for goods that they sell or resupply to their businesses, help them earn higher commissions and better bonuses, and reduce their working capital costs while unlocking access to third-party credit. On the consumer side, we're gonna help those consumers make payments, save money, and earn when they buy online or in person. They'll be able to make online purchases and in store, pay their bills, manage their subscriptions, unlock premium and live entertainment, which we've been well-known for over 40 years. They'll be able to bet and reap their winnings, shop and buy goods for delivery, pay for education, pay for transportation, and do all that while earning points, rewards, and targeted offers. Because of the data in the platform, they'll be able to save money better than they can today, borrow money more cheaply than they can, and get insured more effectively because of the data capabilities underlying the platform. As an investor, you may be wondering, what's our business model? How do we make money? I'll walk through three examples that I hope will make that clear. The first example is paying a bill. In this example, the consumer is watching DStv at home, happily on their couch. Their bill becomes due. They get a notification in the corner of the screen saying, "You have a bill available." They click through, they view the amount, they can scan a QR code on their screen with their phone and then pay with any of their favorite payment methods and instantaneously be back watching their content, for which we would make 1%-3% of the payment value. The second example is an in-app purchase. The consumer has the Moment app on their phone. They have a product catalog available to them, positioned by retailers to find the products that they're interested in. They can complete a purchase of those goods in-app, and then they can earn rewards, which helps the merchant retarget the consumer so they can keep repurchasing from the same brands. In aggregate for placing the goods, completing the payment, and selling the rewards, we can make a total of 5%-20% of the purchase value. The last example builds around redeeming those offers. Now the consumer is seeing a television ad for a product. They can save the offer in that wallet app on their hand. They can visit the retail location, redeem the offers that are saved in the wallet directly in the store, pay with the account balance in the wallet, and then earn more rewards. For that, getting someone from their couch into a store, completing a purchase, and then providing that retargeting method using offers, we can take 7%-30% of the initial purchase value. The business model is incredible as we layer data on top of transaction services in a way that only this joint venture can do through the magic of MultiChoice's distribution to the market. From a value creation standpoint, venture capital investments have been flooding into Africa for years, hitting $2.9 billion in 2022. Of that, $1.3 billion were actually in fintech. There's a well-known array of fintech unicorns that have been created across Africa from Interswitch and MFS to Flutterwave, peaking at $3 billion of value. There's an exceptional opportunity for shareholder value creation. We're already in pilot mode across multiple markets in the continent. We look forward to sharing much more with you very soon. Thank you. I look forward to your questions. Another vertical added to the MultiChoice Group, again with great promise for growth and an innovative delivery of active participation between multiple stakeholders across Sub-Saharan Africa. There's lots of questions that many of you have submitted, and we will address them right now. Joining me in studio is Joel, and of course, returning for this particular Q&A session is Calvo as a Group CEO of MultiChoice Group. Gentlemen, thank you so much. Again, this is a very exciting vertical, one that gets a lot of questions I can imagine. Calvo, given that we have you back, we clearly want to understand the rationale behind this particular investment and partnership. Remind us as to why fintech is a leader that you believe MultiChoice Group will excel in. Yeah. Gugu, if you look at MultiChoice spanning across 50 markets on the continent, we already process about $3.5 billion of payments, just as a business alone. Out of the $3.5 billion, we have integrated over 200 payment companies that allows payments to come through and makes it easy for people to make payments. Out of that, we leave about $60 million on the table in commissions that we pay to the third-party payment companies that are integrated into ourselves. We have took the learnings from Irdeto, which is our security company, which used to be a third party. We brought them in-house, and we turned a cost center into a profit center in Irdeto, and that has created shareholder value. In this initiative with the best in class in terms of Moment partners, which is Rapyd and General Catalyst, we are trying to do the same thing. I think Joel, in articulating the strategy, in his presentation, has made it clear what the path towards us turning this into a profitable business is going to look like. Yeah. It's an incredible journey. You touched on a myriad of factors here, you know, how this will contribute to digital inclusion, financial inclusion, support households, businesses, entrepreneurship, so much within the ecosystem. Perhaps, Joel, this is where you can continue to shed some more light in terms of how Moment is actually positioned to be successful here, despite the competitors that exist across the continent. I think one of the beautiful things about this opportunity and the amount of opportunity that exists in Africa is the ability to change lives and help businesses build for themselves. You're talking about an economy that's very heavily in cash still to this day, that's moving towards digital. It's a government priority. It's a priority for business. It's a priority for enterprises. Mm-hmm. We feel very well positioned to build a network that helps us to make that move from cash to digital, working not only with the biggest retailers in the continent, agent networks across the continent, the biggest banks, biggest MTNs, and other innovators to bring faster and faster payments that open up the market for more people. We think that's a very special opportunity, and it's one that touches the lives of real people every day. Yeah. The network aspect is critical that you've mentioned here because this is essentially a ubiquitous platform. So whether you're using Flutterwave, M-PESA, or any other mobile payment system within the continent, essentially Moment will still be a part of it. Help us underscore just how exactly it's integrated within the system here. I think one of the critical things about working in any complex market is people have their own preferences and choices, right? You can't come in and impose what you want on top of them, other than at great cost and probably not very successfully. If you listen to the market, if you work with businesses, you work with enterprises and understand what their needs are, the natural end state you come up to is let's open up, right? Let's make sure people who wish to pay with certain e-wallets can pay with wallets. They wanna pay with mobile money, they can pay with mobile money. They wanna stay on their couch, scan a QR code and make an instant bank transfer, let them make that instant bank transfer. That openness means we have to work with specialists from across the range so we can meet those opportunities in the market. That really move to the market and helping the market to grow is where we think the value creation comes in. Got you. It's met with a lot of concern as well from some investors. One particular question asks, "Joel, why did you not partner with someone like MTN who already has a payment platform and presence in Africa? What are the advantages of going solo, and what has been the capital outlay so far? I mean, it's a great question, but in fact, we're not going solo, right? Yeah. MTN is a critical partner in this. In all the markets that they're strong, we're working with their competitors and other mobile money companies in markets where they're strong to ensure that everywhere that they've made the shift and educated the population and educated businesses or built their agent networks... Mm-hmm. We're actually able to actually amplify those investments and get more, rather than trying to go up against the wall and compete with every single person that's already made an investment in every market in Africa. Again, we think it's an inclusive platform that grows the market overall. Such perfect positioning as well. As you say, all partners and peers are available at various aspects of entry into geographic areas and locations, and of course, working actively with your respective partners in those jurisdictions. I actually think you might be the favorite child that Calvo didn't wanna talk about earlier on, as I alluded to that vertical. Maybe on that note, Calvo, help us underscore the economic prospects that exist here in terms of revenue streams from Moment. This does tie into a question where one of our investors is seeking clarity on that $60 million commission opportunity that you mentioned. Give us some clarity there to be clear. Yeah. Does that speak to the revenue that will come into the business? Yeah. I mean, at the moment we are reliant on a third party. Anybody that comes to us and says, "Guys, I can provide you with a payment platform that your subscribers can use, and it will make it easier for people to pay you," we tend to say, "Hey, you are helping us in getting more and more people to be able to pay us. Let us negotiate the commissions that you'll ask from us." Some commissions will be higher than others. Others have a stronghold and therefore the numbers that we pay will be a little bit higher. In coming up with Moment, what Moment is going to help us do is to try through their payment platform layer to simplify the integrations of all these third parties within MultiChoice, among the things that Joel will speak about. Secondly, because our platform is much easier and it's going to be much more advanced in terms of the technology that the likes of Rapyd are bringing in, we are able to negotiate better rates with everybody that we are integrating with. Joel has explained that this is an open system. Mm-hmm. -that is able to allow everybody else to come in. People tend to be more accepting of coming down in terms of the commissions that they've been charging us- Mm-hmm. than they used to be in the past. We see firstly as MultiChoice benefiting just out of Moment being created, and then secondly, then it opens up more opportunities for other people to come in. 100%. Joel, this is really intriguing though, because its ubiquitous nature definitely speaks to working in different markets that have different regulatory requirements and of course licensing requirements as well. Help us understand how you've navigated that, as you did allude to wanting to dominate 40 markets within the African continent. Yeah. I think it's foundational in the payment business is compliance, right? Compliance, regulation, working closely with governments. As we have developed the network, right? We pursue kind of a hub and spoke strategy, right? Mm-hmm. Licensing in the core markets, working with licensed players in other markets, and ultimately growing in a very gradual and deliberate way, so we're not outstripping our own compliance capabilities or those relationships that we've built. Being fully compliant is critical, and we'll exit the year with licenses in a number of markets that I won't disclose, but we'll share it next year at this time. Mm-hmm. In all the markets that I mentioned in the presentation, we're working on top of fully compliant players, again, whether they are banks, whether they're other fintechs, whether they're mobile money providers. Mm-hmm. et cetera. It's very, very essential that we not operate out there on the edge doing something in the gray. We're very firmly focused on doing things the right way. Mm-hmm. In a fully licensed manner. 100%. Speaks to governance, which came up as a key topic earlier on in our conversations today. This also speaks to your acquisitive drive and of course, your questions do keep coming in and we're addressing them to our executives today. The question for you, Joel, here is what are the challenges you expect to scale your offering and differentiate from some of the other play payment platforms that exist in the market? I think it's a great question. If you think about the presentation effectively in three segments, right? Yeah. We're focusing three out of the five points on the business-to-business framework. How do we support businesses like MultiChoice? How do we support enterprises and mid-market companies that are trading around the world? That's really our first foundation, right? How do we get the regulatory in place, the payment network in place, process payments at an enterprise scale, and build that confidence within the group, and then confidence outside of the group? The small business agent propositions are expansions built on top of that, and you'll see aspects of that and aspects of the consumer proposition this year, but we are staging ourself in a gradual way to make sure we get the foundations right as we grow along. Mm-hmm. As a result, and to the spirit of the question, one of the things we're trying to then minimize is customer acquisition cost, customer retention cost, et cetera, to try to get people to shift from X to ourselves. That's not the focus. The focus is get the foundation right and have a product pull that pulls people into the system, but in a way that's very capital efficient for us as well. Mm-hmm. Interesting you mention that, because naturally this does mean that, you have a lot of partnerships with a number of key players in different markets, some investors are keen to understand will the underlying technology be owned by Moment given this partnership model? Yeah, that's a great question. As Calvo mentioned already, we do enter life with investment capability from Rapyd. There's a software platform that's operating in over more than 130 countries around the world already. We don't have to repeat that investment. The integration layer for Africa, the capabilities for Africa, the elements of the service stack that are unique to what we wanna do on the enterprise side, business and consumer, those are all unique to the JV, and are built on top of it. The IP base effectively have a very affordable licensing model, with our partner on the Rapyd side, and then we're building core IP that's unique to the market that drives incremental value within Moment. Is this a deliberate effort to work with different partners, Rapyd, MultiChoice, and are there investors that might come on board? It's a deliberate investment to bring the best technology into the business. Uh-huh. right? And to make sure that we have the capability to scale with the ambitions that we've mentioned. At the same time, certainly we're looking to expand the investor pool down the line to make sure we continue to have access to growth markets, access to more expertise. There's a lot of excitement around this particular lever. The questions do keep coming in. Joel, this one's addressed to you specifically: "Can you unpack what you are doing with telcos, and what does the partnering entail? Use examples, please." This one really wants to get into the nitty-gritty. Sure. Let's narrow this example to the, let's call it the MultiChoice use case, right? Gotcha. If you look at even in the presentation, we mentioned a number of mobile money platforms and the scale and preference that they have in certain markets. Historically, all of those markets have not been turned on within MultiChoice Group. They've picked and chosen because of cost. As Calvo has mentioned, there's a cost to doing that integration. We've now reduced that cost. We've made it simpler to work with a mobile money platform and say, "Look, let's turn you on in 12 markets, 18 markets, 14 markets here." They're seeing opportunities for their business to grow. They're seeing opportunities to penetrate further the MultiChoice network to help Showmax grow, et cetera. At the same time, we've created a wider platform for consumers who prefer mobile money to work with other enterprise businesses as well, right? Mm. An enterprise business that wants to come into the market, a Pan-African business that wants to grow, they don't have to repeat those expensive investments. Sure. They can come to us. We can offer that full market, so it's a win for the telco, it's a win for the new merchant, it's a win for MultiChoice and all of the sister companies you've heard about today. I think it's important that we do underscore that, because it does relate to another question that we asked, or an investor's asked regarding the positioning of this particular business. Do you also have a wallet proposition, or mainly focused on payment processing? It's a very good and nuanced question. Ultimately, a wallet proposition is important, right? Whether you are an enterprise and you wanna bring liquidity in and recirculate it to pay your suppliers, at the end of the day, you have to have some mechanism to do that, right? So it matters for enterprises, it matters for mid-market businesses that are doing global trade or Pan-African trade, and then absolutely it matters to smaller business and consumers as well, right? So as we expand the licensing footprint, having the ability to hold funds in a wallet or an account in a compliant manner is a foundational piece of the ecosystem, and absolutely you'll see aspects of that. As we try to retain value within the group... Mm-hmm ... and maybe draw some parallels across what people have watched today, you know, funds that come in can be, can be spent in a variety of ways in the platform, whether they're for digital entertainment, whether they're for betting-related entertainment, whether they're for other services. Even on the consumer side, you'll see that down the line. Calvo, this sounds phenomenal, and I guess, you know, really unpacks the opportunity that you alluded to earlier, and this detail really provides investors with clarity, and greater insight. I can imagine that with many investors, top of mind would be what if partnerships don't work out effectively? We're well aware that there's some institutions who might face regulatory challenges across the continent, or other questionable themes that might come around the operation activity. How is MultiChoice Group going to mitigate and manage this particular risk that might impact the Moment? Yeah, I mean, this partnership evolve over time. There's a lot of discussion that happened, even starting with do we think there is an opportunity? Mm-hmm. Are they interested? If you look at Rapyd, they don't exist in Africa. If you look at General Catalyst, they do not really have a huge presence in Africa. Through the partnership that they've built with us and the engagement that we have had over a period of time, that's the confidence that we, that they built over time, where they understood our distribution, they understood that we understand the market very well, we understand the legal systems that works across the markets that we operate in, and that helped them to get over the hurdle of saying, "It might be harder for us to go in and do this thing. Mm-hmm. Through the engagements that we have had, we have managed to come together, agree on a vision that we see for Africa, and people are excited to solve one of the biggest challenges on the continent, which is moving people from cash to digital payment and making it easier to bring people from being unbanked to be banked. Yeah. That is an exciting opportunity, and people are there also to make a difference in people's lives. 100%. Here we were thinking MultiChoice is just about pay- TV, but you're showing us there's so much more to explore. Maybe this leaves it on a positive note just for us as investors to have a sense of comfort as to why we believe this investment and journey with Moment will be successful. Calvo, then you're happy to close off, Joel. I believe in the story very much so. If I look at the caliber of people that have come together, General Catalyst invested in a lot of fintech companies all over the world. Us having a distribution and a strong presence in the market with credibility that we have built over many years. Tech platform coming through Rapyd, which is an established fintech business. There can't be a better combination than this to be able to solve the challenges of payments on the continent, and I'm very positive about this. Mm-hmm. Joel? I think it's an absolutely unbelievable partnership, because MultiChoice for 40 years has built trust, regulatory wisdom, and incredible corporate culture, and then has this unbelievable base of emotional, engaging content that goes way beyond the relationship you would have with, you know, a bank account, perhaps, right? All of a sudden, we can connect to this whole world that people are very passionate about. Mm-hmm ... and bring people into that world through the mechanism of payment. As we think about what's going to take someone from, you know, a very expensive solution that locks them out of the market, keeps them, you know, unbanked, potentially, poor access to credit, cost of services is very, very high, cost of goods is very, very high, as we bring them in through this emotional engagement into the digital economy, we create real opportunities for people to make their lives better in a way that I honestly don't think any other partnership could achieve. 100%. When you come back, you'll have a lot of breaking news for us here, Joel. That's a promise. Well, fantastic. Well, we'll hold you to it and looking forward to it. Of course, that's the South African and really Pan-African customers making use of this platform and fully integrating and understanding how it can unlock so many more opportunities within the fintech space. Well, thank you very much to you both, Calvo and Joel. Now we're going to get a clearer understanding of the money. We've heard a lot this morning, especially regarding the various verticals and of course, opportunities that exist within the MultiChoice Group, and how the strategy is going to lead us forward to being a key technology platform. However, one thing that is required is capital allocation, and that's exactly what we're going to deep dive into right now by getting further detail on the capital that will be required to unlock these new opportunities. Next up is the numbers guy, MultiChoice CFO, Tim Jacobs. He'll go over MultiChoice's capital allocation framework, and of course, we'll have an opportunity to engage him on these particular positionings and investments going forward. Keep your questions coming. Thank you, Gugs. Hi, everyone. Welcome to the capital allocation section of Capital Markets Day. I'm looking forward to sharing our thought process on an area that is critically important to us, gets a lot of focus from our shareholders, and is closely linked to the strategy session that Calvo took you through earlier. Slide two is the agenda. We will unpack the key components of our capital allocation framework and provide a view of the way forward in the session. Let's get into the detail. On slide three, we contextualize how we see the role of capital allocation in our business. Earlier today, Calvo explained our vision of enriching lives and how we translated it into a broader strategy to address several opportunities on the continent. If our vision is the why and our strategy the plan, optimal capital allocation is the how. How do we make this happen? How do we prioritize opportunities? How do we allocate scarce resources? These decisions are critical to the execution of our strategy and ultimately determine whether or not we create sustainable long-term value for our shareholders. Turning to slide four, we provide a summary of the principles that guide our disciplined approach to capital management. Our board oversees our strategy and capital allocation process and supports our executive team in driving growth with a focus on avoiding undue risks. Our vision and strategy inform our capital allocation priorities, and we are focused on specific verticals in leveraging our platform to build a broader consumer ecosystem. We use detailed budgets and three-year business plans with a robust review process and semi-annual check-ins to manage our operating entities and support our planning around capital generation and capital deployment, and apply the same diligence when evaluating new opportunities. We take a flexible approach to optimizing growth through organic initiatives, partnerships or investments, whichever is the most appropriate. Finally, we engage extensively with our shareholders with the aim of achieving alignment in key areas like incentivization relative to capital allocation and returns. Slide five reflects our two key objectives in terms of capital allocation. Our first objective is to optimize profitability and free cash flow generation through time. This is not the same as maximizing free cash flow generation in the short term. Although some of our businesses are more mature and require less reinvestment, we are also actively growing others, so the objective is to create a portfolio of assets that can generate free cash sustainably through time. Our second objective is to maximize shareholder returns. Our view is that if we create value in our underlying businesses and distribute any excess capital to shareholders, shareholder returns will take care of itself in the long run. Before we get into capital allocation, let's quickly reflect on our capital structure, which is summarized on slide six. We often get asked about target gearing ratios, but that's not how we think about the business. Yes, there is a case to be made for purely optimizing your balance sheet and therefore returns to equity holders with gearing. We also consider what purpose does the debt serve, whether interest is tax deductible, what returns we expect to get on deployment of that debt, and how to balance higher gearing levels now against optionality in the future. We are also very conscious of the risk profile of operating across Africa and the need to have a strong balance sheet to manage these risks. We'll unpack some of the considerations around these buckets later in the presentation, but just to note the following for now. With regard to cash, we retain an operating cash balance in business and in-country to cater for operational requirements, working capital and CapEx cycles, as well as group facilities to protect the business against exogenous shocks and periodic liquidity issues. Our satellite leases are technically part of our capital structure in terms of accounting convention. However, as you know, we include transponder costs as an expense in trading profit to fully reflect the operating costs for our business. Looking to debt, we have recently taken on additional gearing to fund our more aggressive ambition in Showmax. We have refinanced about ZAR 7 billion of existing debt this year, which brings our year-end balance to just over ZAR 8 billion. We have also increased our available facilities, which will be used to fund our growth ambitions over time, and our leverage ratio would be around 1 x using our 12-month EBITDA to September 2022. When it comes to equity, we have no plans to issue shares, and we plan to continue to offset employee share awards through share buybacks. As a final note, our weighted average cost of capital is around 16%. It is a crucial benchmark when we evaluate capital allocation options, and we adjust this hurdle rate upwards to account for higher risk geographies or earlier stage business models. As an example, when it comes to our PPS scheme, management is only meaningfully rewarded when new investments achieve an IRR of 20% or more. On slide seven, we summarize our capital allocation framework, which evolves around capital generation, priority capital allocation, and discretionary capital allocation. Running through the components from top to bottom, we start with our more mature profit centers that generate capital via free cash flows, which we upstream to group via dividends. There is some leakage in this process as upstreaming cash from MultiChoice South Africa results in dividend paid to our very successful Phuthuma Nathi empowerment scheme. We therefore reflect this as a priority capital allocation. We also allocate capital on a priority basis to fund our rest of Africa business until it generates sustainable free cash flow and is self-funding. We expect to be free cash flow breakeven in the 2024 financial year and to be self-funding by financial year 2026. Our strong balance sheet has capacity to grow our newer ecosystem verticals, which require varying levels of support from the group. We also need to ensure that we have sufficient operating cash on hand to manage our business through the course of the year and optimize our gearing levels to support our investment plans. When it comes to discretionary allocations, we deploy capital into targeted new investments, we distribute excess cash to shareholders via dividends, and we opportunistically buy back shares when it makes sense to do so. Let's unpack some of the detail of the framework, starting with capital generation. Slide nine provides a sense of how we prioritize capital within our core South African video business before we deploy the balance at a MultiChoice Group level. The premium and mid-segment of our customer base is more mature, and affordability is a constraint in the current environment. We are therefore primarily focused on retention and increased activity levels by reinvesting in customer value. As part of this value proposition, we continue to invest in local content and sports properties as key differentiators of our service offering. We are focused on adapting our linear business to a more connected world, and we're doing this through both our DStv via streaming service and through our aggregation strategy, which leverages our connected devices and third-party streaming partnerships. Beyond pure video entertainment, we are also investing in additional services where we believe we have an opportunity to add value to customers' lives. Our broadband, insurance, and on-demand security services are good examples of our initiatives to date. We're also investing in systems, such as our digital self-service solution, to improve customer experience and reduce operating costs over time. The net result is that we are principally managing the South African pay- TV business for profit and free cash flow sustainability. Slide 10 shows how free cash flow is upstreamed from our more mature MultiChoice South Africa and Irdeto businesses to the MultiChoice Group via annual dividend payments. The basic principle is that both companies pay out the majority of their free cash flow each year while retaining some cash to ensure they are sufficiently capitalized for their operating needs and planned commitments. There is no free cash flow or earnings payout ratio for MultiChoice South Africa, but the dividend has been broadly stable over time, and the intention remains to upstream most of the free cash generated to the Group, subject to annual board approval. We have minority partners who are co-invested in our South African business via the Phuthuma Nathi share scheme, and they participate in 23% of the dividends that are paid by MultiChoice South Africa. We upstream roughly 2/3 of Irdeto's free cash flows. Unlike South Africa, we don't have any minority leakage in this process. Using financial year 2022 as an illustration, these two core capital generating businesses paid roughly ZAR 5 billion to the MultiChoice Group. Moving on to our capital allocation priorities. Returning the rest of Africa to trading profit breakeven, cash flow and funding breakeven, and finally to a sustainable and normalized level of profitability, has been a critical point of focus for our board and executive management team since our listing. Slide 12 provides a brief reminder of where the business has come from. The commodity and foreign exchange crisis, combined with implementation of our value strategy around the same time, led to a ZAR 4.9 billion loss in peak trading in financial year 2017. We have incurred an additional ZAR 3.4 billion of foreign exchange headwinds in the five years to financial year 2022, but delivered ZAR 7.1 billion in organic growth over the period as we added almost 6 million 90-day active subscribers, implemented an inflation repricing policy, and managed costs carefully. As a result, and despite more foreign exchange losses, we remain on track to reach our medium-term trading profit breakeven targets in financial year 2023. In a more stable foreign exchange environment, the rest of Africa business would have been profitable a few years ago. We note that our DTT business has been profitable for two years already. Looking beyond this year, we are targeting free cash flow breakeven in financial year 2024 and aggregate funding in breakeven in financial year 2026. We are now targeting to reach a 12% trading margin in the medium term. On slide 13, we link our capital allocation process back to the new opportunities highlighted today. As Kim mentioned, and most of our investors are aware, KingMakers is an established business that is showing strong growth in its core market, where it has already reached profitability. Although it is subject to a shallow J-curve as it expands the business, KingMakers is fully funded and will not require any further capital from us. Similarly, because of the way the joint venture has been set up, and because it is able to leverage our payment flows from day one, Moment is unlikely to require material capital funding from us. That leaves the step up in our Showmax ambitions in partnership with Comcast as the one growth opportunity that will require material funding over the next few years. Let's turn to slide 14 to look at this in more detail. In our March voluntary trading update, we mentioned that the segmental trading margin for our South African business would be impacted by costs relating to the Showmax Comcast transaction. On the left of the slide, we provide an indication of those additional costs on top of the underlying operating loss in the Showmax business. These expenses include around ZAR 100 million in transaction costs, which were quite high as it involved several supporting agreements with Comcast, Sky, and Peacock across multiple geographies. It also includes around ZAR 600 million in platform customization costs as we started to prepare moving the Showmax business over to the Peacock platform. The right-hand side of the graph shows the evolution of Showmax's financials over time. You'll see that operating losses have gradually been increasing. This is despite growing revenues. As we invested in Showmax Originals and continue to improve the back-end infrastructure and the front-end user experience. Financial year 2023 losses will be somewhat elevated due to the one-off costs I've just mentioned. In financial year 2024 and 2025, we expect to enter a short investment phase as we drive scale in line with the opportunity that we foresee in the market. As a reminder, our partners will fund 30% of these costs. Our portion will be funded from our increased debt facilities. Moving to slide 15, we explain how we think about and manage our operating cash balances. Investors often focus on our year-end cash balances and free cash flow generation and query why we don't routinely declare higher dividends. Firstly, it's important to bear in mind that the cash balance that we report at September and March is not indicative of the average cash balance throughout the course of the year, as monthly cash levels are affected by content right payments, among other things. Secondly, we typically require around ZAR 5 billion in operating cash balances across our segments to ensure our businesses operate sustainably and are able to accommodate working capital needs as well as to manage volatility in our markets. Finally, when markets like Nigeria see foreign currency shortages and limited U.S. dollar liquidity, we're not always able to access all of our cash immediately, or at least not at its reported fair value. Next, on slide 16, we discuss our finance leases and interest-bearing debt and the principles underpinning how we manage our gearing profile. As a general rule, we do not want to add significant financial risk to operational execution risk. While we do not have formal leverage targets in place, we are subject to debt covenants, including a cap on our leverage ratio of 2.5 x EBITDA. Our leverage ratio is calculated as net debt, including our leases and excluding restricted cash over EBITDA. Our gearing ratio based on 12-month EBITDA to September 2022, would be roughly 1x, which implies that we retain reasonable upside to our current gearing levels. Our transponder lease liabilities have been trending low in U.S. dollar terms in recent years. Our next set of renewals start to roll through from 2025 in the rest of Africa and from 2027 in South Africa. We're actively planning for our next capacity utilization in the next transponder lease cycle with the objective of reducing the number of transponders currently in service. In terms of financial gearing and with rest of Africa approaching profitability, we have shown a willingness to take on debt to optimize our balance sheet. Examples are our working capital loan, borrowings to fund investments, as in the case of KingMakers, and to support business development, as in the case of our Showmax partnership with Comcast. As a final point, we maintain access to debt facilities to create additional flexibility in our cash and capital management process. Moving on to the more discretionary element of our capital allocation process, it's important to reiterate by using the term discretionary. It's simply meant to distinguish these categories from investment that is critical to growing our operating business and new investments. On slide 18, we note that targeted investments are a critical component of our platform strategy. As Calvo outlined in his section, we believe we have a unique position given the strength of our platform, our presence across 50 territories in Sub-Saharan Africa, and our insights into our customer base. Within that context, we have identified specific areas where we want to pursue opportunities directly and areas which require a more considered approach. For example, we have historically avoided capital-intensive sectors like telecommunications infrastructure, and this remains the case today. We also ensure that we follow due process in terms of formal management reviews, support from legal and other experts in deal structuring and due diligence on investment targets, and board approvals as needed. Importantly, key criteria when we evaluate an investment are the following: It must improve our customer journey and value proposition, particularly in an increasingly digital environment. It must have the ability to leverage our customer base and our unique expertise to accelerate its growth, and it must be likely to generate returns well in excess of our cost of capital. Turning to slide 19, we deal with one of the most frequently asked questions in all of our shareholder and analyst meetings, namely dividends. As we've consistently noted in our engagements with the market, our policy is to return excess capital to shareholders in the most optimal way. We have also intentionally avoided a formal dividend payout ratio policy, given the foreign exchange headwinds we've had to absorb and our growth ambitions to ensure long-term value creation. Our board typically deliberates on our dividend in June each year when they approve our most recent financial performance and consider our position against the three-year budget. This year will be no different. Although dividends remain a discretionary element in terms of capital allocation, from a practical perspective, one would expect MultiChoice South Africa to continue upstreaming cash to group, which would support a per turn after dividend going forward. At a group level, factors that would impact the dividend decision are aggregate free cash flow generation and the pressure points we flagged in financial year 2023, the cash funding requirements for the Rest of Africa business below the trading profit line, cash extraction losses in Nigeria, and the transaction expenses, platform customization costs, and short-term funding requirements of our Showmax business. Slide 20 reflects on our approach to share buybacks. We have a policy to buy back shares in the market to offset share awards to employees, as this prevents shareholder dilution over time. Beyond that, we are more opportunistic in our approach to buybacks. It's probably fair to assume that share buybacks are more discretionary than the other components discussed in this presentation, at least for the foreseeable future. Finally, on slide 21, we share our outlook on capital allocation. The critical near-term delta for our capital management will be returning Rest of Africa to sustainable cash flow generation and becoming self-funding, which will then become a source of group capital. While KingMakers and Moment will not require significant funding, they are unlikely to pay out dividends in the short term as they pursue significant growth opportunities in their respective businesses. In the meantime, we will support Showmax as it scales into what we expect to be a significant opportunity. Over a medium-term timeframe of five years, we expect our group to have several cash-generating businesses representing a more diversified set of cash flow streams. This will support both ongoing investment into our ecosystem as well as the return of excess capital to shareholders through dividends and/or share buybacks. As we've mentioned, we have deep insights into customer preferences, and we are using these insights and our platform to grow our businesses sustainably over the long term. With that, I would like to thank you for your time and hand you back over to Gugu. Well, we started off the day's conversation by speaking to both Calvo and Tim, and we're going to conclude it in the very same manner, by getting clarity on these various verticals that we've now gotten a better understanding of, and of course, as you've just heard, the capital allocation. Tim and Calvo, thank you again for your time today and to add more detail and clarity into this ever-evolving picture of the MultiChoice Group and, of course, the new levers and pillars that we're going to explore. Tim, you're the numbers guy. I can imagine when all these proposals come to the table that, "Let's acquire this, let's partner with this, let's do that," it obviously comes with the number one question you typically ask, "How much is it going to cost us?" Much like our investors, I guess this is obviously the clarity that we're looking to understand. In terms of getting an understanding of the expected levels of these various verticals, help us understand what this will likely mean in terms of growth, revenue expectations, and profitability for the business going forward. Well, I think one of the things that we have given a clear steer on is our, kind of our internal expectations when we start these new business verticals. A good way to describe this is that a lot of these verticals will end up in our, what we call our Phantom Performance Share Scheme. Mm-hmm. This is these new verticals. We only participate as management in any meaningful way once you get to kind of 20%-25%, so we have to deliver, you know, significant IRRs on these, on these, on these projects. As Calvo's mentioned, you know, we do expect all three of these to be fairly material, when you look out, you know, five, 10 years. We think that these can be really meaningful segments for us- Yeah on all of those levels, revenue, trading profit, as well as free cash flow. Got you. Maybe let's talk dividends because there is a question here related to that. The implications of the funding of these new growth verticals, what impact will that have on dividends going forward? Well, I think I mean, we have a very clear philosophy around how we think about dividends. I did mention in my presentation that there are three fundamental things that we're looking at right now in terms of when the board will sit on the 13th of June and make that determination. One is the state of the South African business. Mm-hmm right, and the cash that gets generated out of that entity. The second one is the ongoing funding requirement coming out of the Rest of Africa. We have got those cash extraction losses that obviously we, you know, we think about quite carefully. The last part, of course, is the new investment in Showmax, and how that's going to scale up over the next couple of years as we really drive scale in that business. But having said all of that, I mean, these, you know, we are in a closed period, so we can't be more specific about the dividend, but we are looking forward to bringing, you know, feedback on exactly that deliberation when we come back on the 13th with our results. Fingers crossed, thumbs held for some good news there for the investment community. Quite a few questions that we need to run through. Calvo, this one is specific to the South African environment and, as you can expect, load shedding. They ask, "In South Africa, power shortage issues does not seem to end soon. What are your plans to offset this? Would turning to more mobile or handheld entertainment help?" Your thoughts? Yeah, definitely it does help. What we have seen, and we just had engagement with some of our customers over the last day or so, and some of the engagement was around load shedding, what we have done by introducing channels that are playing out at a later timeframe while playing the same content. That has helped in terms of people catching up with some of our content. The second element is just to drive people to get their mobile apps downloaded. Mm-hmm ... and thereby continue to watch some of the programs. We have seen an uptick in terms of consumption on the mobile platforms, which really shows that people appreciate the advertising that we have put behind it to, for them to catch up with that. It helps a bit. Mm-hmm. That shift as well from traditional TV to mobile as well as streaming does also bring about interesting considerations when it comes to subscriptions, right? As well as payments. Our next question alludes to that, again, against the backdrop of the macroeconomic climate. It's addressed to Calvo. The question asks, "Given high inflation in Africa and currency depreciations, how do you think about price increases now? Yeah. In the rest of Africa, we have managed to put prices in line with inflation over the last few years. Even this year we have done the same across all our markets. It's something that we go through each year, but our philosophy is to try to put prices in line with inflation. We take inflation into account every year, and we try to push it through to our customers. Every year we have to look at it carefully and see if the market can absorb. Mm the level of inflation that exists in those markets. Mm. It's definitely been a tough time on that note. Speaking of currency risks, which is something that you touched on earlier, Tim, two questions here, one related to the Nigerian market specifically. It asks, "What FX rate are you getting cash from Nigeria out at? Yeah. Obviously we, when we look at this, the financial year that's just passed, we'll speak about that more, in more detail, you know, kind of, at the results presentation. I'd say at the moment, it depends on where you're getting it out. There's a bit of a range at the moment. Mm-hmm. Probably looking at kind of NGN 730-NGN 770 at the more expensive debt levels. We of course, have mandates from our risk committee, so we're very careful about what rates we do take that money out, and often we'll walk away from deals that we consider to be too expensive. Mm-hmm. We don't wanna become price setters in the market. We walk away from a fairly I'd say a reasonable amount of cash in the market just because it's too pricey. Got you. Keeping with FX, another question actually talks about the U.S. dollar and South African and exchange rate, which of course has been approaching 20 in recent days. How do you manage the cost of international content, and importantly, sports content? Hedging strategies perhaps that you might implement there? We find ourselves in a still with a reasonable amount of cover. We've got forward cover that we've taken out previously at fairly reasonable rates, for the balance of this, new financial year. Mm-hmm 2024. When we get past that, Because the dollar exchange rate has been moving in this kind of upward trajectory, and we didn't believe that it was a sustainable level, we've actually stayed out of the market. What would typically happen is if the rates come back down, and it becomes what we consider to be commercially viable to take out that forward cover, we'll immediately start to top up every time the rand corrects. If it stays at these elevated weaker levels, we'll then move into the spot market at some point. Mm. Of course, if that happens, then we will see, you know, a quite a big jump in the cost base, simply because dollar costs, you know, that were hedged, you know, two years ago, and that are now coming through in the in those hedge instruments are at a significantly lower rate than the current spot. Makes sense. I'm assuming on the back of the current news cycle, then you're monitoring what's happening internationally very closely and the economic ramifications on your numbers then. We are. It's. Look, it's one of those unfortunate things when you operate in an emerging market. A large part of the time, you know, the issues that drive the currency movements are not always directly related to what's happening in your particular markets. They're often more about what's happening in first world markets like the U.S. You know, this is something that we've dealt with and have managed for, you know, for decades. There's times when it's difficult. You know, our job again, is to find solutions and find ways to kind of offset those costs, and that's what we're doing at the moment. 100%. Another key question, and this one largely related to these additional investments, specifically related to Showmax, and the question asks, "What is the highest level of gearing you would be comfortable with to cover cash required for the Showmax venture and potential additional bolt-on M&A?" Perhaps some clarity there. Yeah. I mean, this is always an interesting question, right? I mean, I think what we've demonstrated over the last couple of years is, one, a willingness to take on more debt on the balance sheet. We have tended to be on the conservative side of leverage, and that's simply because there are so many big, you know, kind of shock factors that can happen on the African continent. We're seeing some of them like load shedding in South Africa, getting money out of Nigeria at these really elevated exchange rates. As a, as a general cap, I would say, the upper limit would probably be where our debt facilities that we currently have in place have got covenants. The banks have set our covenants at kind of 2.5 x net debt to EBITDA. That, that would be the upper end of the limit, but we tend to be relatively conservative and make sure that we've got a lot of optionality, you know, between where we actually have debt today, and that top end of the range. Understood. Coming back to a conversation that was had earlier, focused on key partnerships and of course, these various verticals. Calvo, this is where you highlighted that what we've discussed today certainly, is the key driver and the levers that we're going to pull at to make sure that we see growth coming out of the MultiChoice Group. This follows through to another question that we've had. It asks, "Outside of existing partnerships, could you consider introducing partners elsewhere in your business, to support your capital needs?" So on the numbers side, but I guess also influencing operation activity. Yeah. We're very pragmatic in terms of our approach. If, for instance, in the Moment side, there is an opportunity for somebody else who is interested and can fit the profile that we are looking for in terms of our vision. We will be open to discussions of such nature. We'll be with all the other verticals that we have shared today. We'll take a very practical approach. Maybe let's be clear, these are partnerships, right? You're not looking to be bought out or initially looking to buy out any other companies here. No, we're building value for shareholders for the long term, yeah. Got you. Critical that we highlight that. Tim, I guess to close off with, we're also quite keen to get further clarity on a theme and question that has come through here, primarily focused on rest of Africa. You mentioned that we're looking to go back to profitability. Help us understand how we should think about the future here of profit margins in terms of expectations and what would be sustainable for the Group. Yeah. We've had a very clear, let's call it medium and short-term focus. Which was, one, get to trading profit break even, which we're still looking to deliver this financially at 2023. We'll come to the market with those results in a couple of weeks. The next two big hurdles for us are going to be, number one, get to free cash flow break even, and the time horizon there is a year out. By the end of the FY 2024 financial year, we're hoping that that will be a something that we can bed down. The last part is getting this business completely self-funding, which is, in other words, absorbing all of the cash extraction losses that we're currently doing when we take cash out of Nigeria. Mm-hmm. In order to do that, we have to get the margin up, and I think the clear margin that we are gonna now start targeting, we just can't give a time horizon yet, but the margin that we're gonna try and get to is where we used to be when this business made money, which was 12%. Once we get there, we're gonna reassess, because that will not give us the kind of returns that we're looking for in the longer term to get the IRR having made a big investment in the rest of Africa. Mm-hmm. We'll reassess that once we get to that level of profitability. We'll reassess where is the art of the possible, and then of course give the market guidance as and when we get there. Got you. A lot of focus on Nigeria from investors, and this is a follow-up to a comment you made regarding the exchange rate. NGN 730-NGN 770 to get cash out of Nigeria, why so high when MTN is getting cash out at better rates? We get this question quite a lot. MTN being a big listed company in Nigeria, has access to CBN rates for specifically for dividend remittances. From the information that we've been able to ascertain, and we've been looking at this closely for a long time, that kind of brings the total blended answer significantly below what the rest of the market can get. From all the rest of the investigations that we've done, we're kind of right in the range that most people can get money out. No plans to list on the Nigerian stock exchange? Not at the moment. Not at the moment. To close off with, Calvo, we've said quite a bit today. I can imagine there's a lot of negative news flow, lots of questions as well regarding the growth and the strategy and direction of the business. Help us understand internally, you've got a phenomenal executive team, very vibrant workforce as well right across the continent. What's your messaging to staff when you try to motivate them and of course get them to deliver the results that we as stakeholders and investors need? Yeah, I mean, our message is very clear. This is a business that was built on innovation. We have not stopped our ambition in terms of where we want to take the business. We believe very strongly that this business will be much bigger than what we inherited when we took over from Naspers. We are building new verticals, they are coming online. It's not a pipe dream. We have seen BetKing is happening, Moment is happening, the partnership with Comcast on our OTT platform is happening. There is no other place to be in terms of a business of this kind on the African continent. The employees are excited. They see a future beyond just what we inherited from Naspers, and that's exciting for the teams. Yeah. The growth does certainly continue. Thank you so much, gentlemen. Looking forward to touching base with you again after financial results are released on the 13th of June, where more insight and clarity will be given on the numbers. Right now, we certainly know where we're headed, and of course you've literally opened us up to a world of more, as the MultiChoice tagline does say. Thanks again, Tim. Thanks again, Calvo. Thank you as well for joining us as members of our investment community. Joining us and actively participating with your questions, the thought and the insight that has been shared with you today as we've all walked a journey to gain clarity on the new verticals of growth and opportunity that are present for MultiChoice Group. As you've heard, lots of evolutions and changes that have come a long way, since the listing of the company on the Johannesburg Stock Exchange. No plans to list anywhere else just yet. Of course that will always be communicated by the executives of the team. One thing is certain, is that these are new levers, new opportunities, that certainly present not only a promise for greater returns for us as investors, but also shifting the narrative and landscape when it comes to the outcomes of households, businesses, and economies across the African continent. A big thank you to all our speakers today, executives giving us their presentations and an understanding of the various aspects of the levers and of course verticals that they are in charge of. Most importantly, thank you as well for your questions and the feedback that you've provided. We certainly hope that we've given you a lot more knowledge and insight and sufficient information, and addressed many of your questions that you may have started off with here today. Of course, we welcome you to continue sharing some of your questions. The investor relations team will be sure to reach out to you and offer you feedback if you've submitted your questions on the feedback form. Speaking of feedback, a reminder to tap onto the link. It is above on the screen, and this is where we'll be able to solicit an understanding of your feedback of today's conference. Calvo, we'll leave you with last thoughts on feedback and closing remarks as we close off to investors today. Yeah. To investors, thank you very much for joining us today. We have shared with you our story of our belief in Africa and the opportunities that lie ahead. We are very excited about Africa. We think we are going to deliver very good value for you if you stay with us. Thank you very much for joining us. We look forward to seeing you on the 13th of June as we release our results. Thank you very much. Thank you so much, Calvo. It's a journey and long may it last and continue and evolve. Thank you so much once again for joining us. We'll see you again on the 13th of June on the back of the MultiChoice Group results. A reminder to please share your feedback with us. On the back of that, have a profitable day further.