Multichoice is bleeding premium subscribers The group said that it is continuing to focus on value$-$added services, including insurance, which grew

to $2\mathrm{.}6$ million customers during the first half of the year $-$ up $19\%-$ as well as DStv Internet, which

gained further traction. Multichoice said that for the rest of the year it will focus on the FIFA World

Cup broadcasts while also expanding its value$-$add portfolio with products such as emergency medical

and security services offered through the recently acquired Namola platform and offering

cybersecurity and connected transport solutions through Irdeto. QUESTIONS $3$: $30$ MARKS

With the aid of a diagram, discuss the BCG Matrix in detail. Provide practical examples for each of the

four categories of the matrix from an industry of your choice.

DStv operator Multichoice has published its interim results for the six months ending $30$ September

The group reported group revenue up $7\%$ to R$28\mathrm{.}65$ billion for the period, with operating profits

up $6\%$ to R$6\mathrm{.}2$ billion. However, it posted a headline loss of R$248$ million $-$ loss per share of $60$ cents $-$

owing to net foreign exchange translation losses of about R$3$ billion attributable to the weaker rand.

The group's earnings and cash flows for the interim period were also adversely impacted by an

outsized investment in decoders ahead of the upcoming $2022$ FIFA World Cup, it said. "This investment

supports the anticipated subscriber growth opportunity around the FWC while at the same time

mitigating the growing risk of supply chain disruptions from global silicon chip shortages.

SuperSport will be the only platform where customers across the group's $50$ markets can watch all

$64$ matches live and in a suitable time zone for African viewers.

This working capital investment increased decoder subsidies and reduced group trading profit by R$700$

million and free cash flow by R$800$ million, primarily in the Rest of Africa," it said. Core headline

earnings, which Multichoice says is more reflecting of the core business, increased $2\%$ to R$2\mathrm{.}0$ billion.

This was mainly attributable to the reduction in losses in the Rest of Africa and positive foreign

exchange movements, it said.

South Africa performance

Multichoice said that its South African operations saw further growth in the mass market segment,

but this was largely at the cost of premium and middle$-$market subscribers. It reported $9\mathrm{.}1$ million $90-$

day active subscribers in the country, up $3\%$ from last year. However, it noted that the middle market

was under pressure, as subscribers in this segment are most impacted by the negative economic

environment, including high unemployment rates, consumer indebtedness, rising inflation and

interest rates. "Frequent load$-$shedding negatively impacted active subscriber numbers towards the

end of September," it said. This resulted in a drop in premium subscribers in the interim period, with

a slight recovery in the last quarter.

Revenue in South Africa decreased $2\%$ to R$17\mathrm{.}4$b billion, mainly due to a weaker$-$than$-$normal Q$1$ when

the impact of the end of the football season was exacerbated by an extremely challenging consumer

climate. "Since July, revenue run rates have improved and are now exceeding comparable prior

periods on a monthly basis." Monthly average revenue per user $($ARPU$)$ declined $4\%$ from R$273$ to

R$261,$ reflecting the ongoing shift to the mass market and the fact that subscriber growth was more

weighted towards the latter part of the reporting period.

Continuing to focus on value$-$added services