Macroeconomic strain, rising piracy, and growing competition from streaming and social media saw subscribers of Multichoice pay-TV services shrink to 14.5 million, with Kenya’s DSTV and Go-TV subscribers declining by 15%.
- •As a result, MultiChoice Group’s revenue fell by 9%, compounding additional factors like currency slippages and the exit of its insurance unit.
- •The falling subscription numbers can be attributed to the price hikes of its pay-TV packages in October last year, which followed the April hike and even prompted legal action in Nigeria.
- •Showmax, the group’s streaming platform, saw a 44% year-on-year increase in active paying users following a price adjustment in March.
“Active subscribers declined 7% YoY, with Nigeria accounting for over half of this decline. At year-end the customer base totalled 7.5 million similar to what was reported at the interim stage,” Multichoice said.
Despite these concerns, the Group has returned to profitability, reporting a net profit of over US$100 million for the year ended March 31, 2025.
The company’s financial turnaround was largely driven by aggressive cost-cutting measures and the sale of 60% of its insurance business to Sanlam. The profit marks a rebound from previous yearly losses and comes as Multichoice continues its strategic restructuring, including an ongoing acquisition by French broadcaster Canal+.
“Firstly, the group aims to stabilise the topline in the video businesses through focused retention initiatives, while supporting rapid topline growth in the group’s interactive entertainment, fintech and insurance investees. Secondly, management will continue to drive operating, cost and working capital efficiencies into the group to protectprofitability and cash flows,” Multichoice said in its outlook statement.
While traditional pay-TV subscriptions saw declining numbers in major African markets, MultiChoice reported significant growth in its digital services. Showmax deepened its presence in 44 African markets through local telco and payment partnerships in key countries and boosted its appeal with 82 original productions and exclusive international content.
DStv Stream subscribers surged by 38%, with revenue from the platform rising 48%. Extra Stream users increased by 25%, with revenues nearly tripling in the service’s first full year. The company also expanded its DStv Internet offering, registering a 45% rise in subscribers and an 85% jump in revenue.
