Understanding MultiChoice SA Opportunities and risks continued Our risks and how they are mitigated At MultiChoice SA, decision-making is supported by a robust risk management process that identi es and seeks to address potential risks. Regulatory and licensing Macro-economic factors Disruption and competition We operate in a highly regulated industry where changes in regulatory policy and legislative frameworks can have a signi cant impact on our business model and customer value proposition. Macro-economic challenges, such as currency depreciation and volatility, increases in lending rates and food and fuel prices, political uncertainty, and ongoing electricity shortages places pressure on the South African economies of the countries where we operate. Consumers are affected by the consequent pressure on disposable income, which potentially affects our addressable market, and growth and retention prospects. The entertainment landscape is becoming increasingly competitive with strong global and local competitors driving increased activity in our markets. Consumers have credible alternatives from multiple sources in video and alternative forms of entertainment. Further, content providers may choose to license their content to intermediaries or go directly to consumers, withdrawing rights from us in the process. • Our focus remains on full compliance with existing regulations. • We continue engaging with regulators and industry bodies proactively. • Through this approach we keep abreast of all developments while providing input that promotes a balanced and evidence-based regulatory framework. • We conduct ongoing regulatory reviews and take the necessary steps to mitigate stakeholder concerns. • Our dedicated, experienced teams (internal and external experts) assist with regulatory engagements, responses to inquiries and other projects/ submissions. • We promote active engagement with management, government and regulatory authorities about how the proposed regulations could impact the industry and consumers. • We understand the pressure our customers face and we remain focused on our value proposition to customers and affordability. This is re ected in our pricing decisions, which are typically below in ation vs. ongoing enhancements to our offerings. • We continue focusing on reducing costs and improving ef ciencies to offset any top-line pressures. • We hedge our foreign exchange exposures for a minimum of 12 to 18 months (depending on the business unit). • We continue moving costs into local currency where feasible. • We offer customers various options suited to their circumstances, supporting value for money with the exibility to adjust to their unique and changing circumstances. • We continue investing in new products, services and businesses to enhance customer experience while diversifying our revenue streams into the future. • We understand entertainment and technology are evolving, as are consumption habits. As such, we continuously invest in product and service innovations, and we focus on better products, value and customer service. • Retaining attractive content rights is a priority, as is investing in our platforms and our content and technology partnerships to maximise mutual bene ts. • We are diversifying our product portfolio and service offering by investing in opportunities in areas adjacent to video entertainment and our established platform to provide a wider array of products and services to our customers. We continue exploring opportunities for relationships with telcos and other third parties to enhance our consumer value proposition through convenience, bundled savings etc. Phuthuma Nathi Investments (RF) Limited Integrated annual report 2023 46
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