The South African Pay-TV service Multichoice has lost more than 1.8 million subscribers in its continental markets due to inflationary pressures and free-to-air alternatives.
- Subscription growth in Kenya dipped by 19%, while in Nigeria, Angola, and Zambia – subscription fell by 18%, 8%, and 60% respectively.
- The decline in subscriber base was further attributed to the hikes in subscription fees for both DSTV and Go-TV packages in its various markets, prompting a 10% revenue decline for the group.
- The Group’s loss for the half year (2024/2025 FY) stood at KSh 12 billion (1.8 billion rand) prompted by forex depreciation in Nigeria and other interest expenses.
“While we have made huge inroads to reduce our cost base, there is still more work to be done. However, our focus extends beyond cost efficiency – we are equally committed to grow the business,” Multichoice Group CEO, Calvo Mawela said.
The Pay-TV industry globally is facing immense challenges due to the influx of streaming services and short-form video content on social media platforms. Multichoice has also grown more unpopular in key markets like Nigeria and Kenya after increasing prices of Pay-TV packages in April, July, and November.
Multichoice has justified these hikes to the rising cost of doing business in these markets, with the Nigerian inflation sitting above 30% f0r most of the year. In Zambia, where revenue and subscription declined considerably, extreme power outages have further cratered the company’s fortunes in the continent.
The group’s revenue increased by 4% Year-On-Year (YoY) to KSh 177 billion (25 billion rand). The company’s cash flow and liquidity status remained positive due to cost optimisation efforts that saved the business KSh 9 billion (1.3 billion rand).
“We are making good progress in addressing the technical insolvency that resulted from non-cash accounting entries at the end of the last financial year. We expect to return to a positive net equity position by the end of November this year, supported by a number of developments and initiatives,” Mawela added.
Multichoice streaming platform ‘Showmax’ recorded a 30% growth in paying subscribers. The platform is still trying to improve its payment channel integrations and optimise efficiency in its continental markets. Showmax revenues for the Year-on-Year basis were still down 40%, mainly due to the hitches experienced during rebranding and migration to the Peacock tech stack.
Sports content remains a crucial lifeline for Multichoice. Through SuperSport, audiences peaked during the EURO 2024 tournament driving ratings up. Pirate websites remain a challenge for Multichoice despite introducing a cheap mobile plan for football lovers on Showmax.
Multichoice is gearing up for an acquisition by French media giant Canal+. The offer is worth US$3 billion and would expand Multichoice services to Francophone Africa where Canal has a dominant footprint. The deal awaits approval after Multichoice accepted the shares buyout in June this year.
“This merger allows us to secure better content rates and drive more revenue, especially given our combined presence in both French and English-speaking Africa,” Mawela said.
