MultiChoice Group, a prominent broadcasting media company based in South Africa, has disclosed its operational results for the financial year that concluded in March 2024 (FY24). The report indicates a 9% reduction in the total number of active subscribers across its services.
In particular, the company experienced a significant 13% decrease in its subscriber count within four key African markets: Nigeria, Angola, Kenya, and Zambia. This decline has been attributed in part to the depreciation of the local currencies in these countries, which has had a substantial 32% negative effect on the Group’s revenue when measured in US dollars. In contrast, the South African market fared relatively better, with a more modest 5% subscriber loss, thanks to the company’s dedicated efforts to implement effective customer retention strategies.
Despite the shrinking subscriber base, MultiChoice Group managed to achieve a 3% organic growth in revenue. Nonetheless, the overall reported revenue for the Group saw a 5% dip, settling at 56.0 billion South African Rand (approximately $3.04 billion). This decline was influenced by the weakening of local currencies against the dollar and a downturn in consumer spending.
The Group’s subscription-based revenue followed a similar pattern, with a 2% organic increase overshadowed by a 7% overall decrease. The latter was largely due to the devaluation of the Nigerian naira.
On a more positive note, MultiChoice’s digital streaming service, Showmax, which successfully surpassed Netflix in popularity in 2023, reported a robust 22% organic revenue growth, reaching 1.0 billion South African Rand (around $54.475 million). This achievement came despite the platform incurring some operational losses.
MultiChoice has also highlighted the significant contribution of its fintech venture, Moment, to the successful relaunch of Showmax. Moment, which was established in the previous fiscal year (FY23) and officially commenced operations in FY24, began by processing payments for MultiChoice’s DStv service in January 2024. By early March 2024, Moment had already processed payments amounting to $85 million. Additionally, Moment secured an extra $22 million in funding, which has raised its valuation to $82 million. MultiChoice holds a 26% equity stake in the fintech company.
Despite the mixed financial outcomes, there are questions about the future direction of MultiChoice’s brands, especially in light of the expected acquisition by Canal+. Maxime Saada, the CEO of Canal+, a French media conglomerate that has progressively increased its ownership in MultiChoice to over 40%, has reassured stakeholders that there are no intentions to alter the branding of MultiChoice, recognizing the strong brand equity that the South African pay-TV company holds.
In the midst of the financial discussions, Canal+ is expected to invest a substantial sum exceeding 30 billion South African Rand to acquire the remaining shares of MultiChoice Group.
Calvo Mawela, the CEO of MultiChoice Group, has confirmed that the company’s three primary business divisions—video entertainment, interactive entertainment, and fintech—are now fully functional and operational.
During the fiscal year 2024, MultiChoice Group made significant strides in content production, creating over 6,500 hours of local programming. This effort brought the total content library to 84,000 hours, marking a 12% increase from the previous year. In addition to its content creation, the Group’s sports broadcasting arm, SuperSport, covered 34,490 live sporting events throughout the year. The company also expanded its reach by launching three new proprietary television channels in Ethiopia, Uganda, and Mozambique, further solidifying its presence in the African market.
Looking to the future, MultiChoice has outlined a strategic plan that includes scaling up its streaming service Showmax, enhancing the capabilities of its fintech arm Moment, and promoting the growth of SuperSportBet. The company is also focused on expanding its insurance offering (NMSIS), DStv Internet, and DStv Stream. In an effort to improve overall business performance, MultiChoice is committed to boosting efficiency and optimizing costs. As part of this initiative, the company has set an ambitious target to achieve cost savings of 2 billion South African Rand. These measures are aimed at strengthening MultiChoice’s market position and ensuring sustainable growth in the face of a rapidly evolving media landscape.
