On Tuesday, MultiChoice, South Africa’s pay-TV giant, announced its latest financial results for the period ending September 30, 2024, reflecting a challenging operating environment.
The company reported a decline in revenue to R25.4 billion ($1.4 billion), down 10% year-on-year (YoY) but up 4% on a constant currency basis. Trading profit before tax also fell significantly due to a forex loss of R2.3 billion ($127 million) in markets like Nigeria and Zambia where currencies depreciated against the US dollar.
Despite the challenges, MultiChoice’s streaming service, Showmax, experienced growth with a 50% increase in subscribers and significant watch hours. This growth was supported by a substantial investment in local content production, marketing, and advertising.
However, the company witnessed a decline of 1.8 million active subscribers, particularly in the Rest of Africa region, leading to a total base of 14.9 million subscribers, an 11% decrease. Factors contributing to this decline included power cuts in key markets like Nigeria and Zambia, resulting in lower engagement and higher churn rates.
The average revenue per user (ARPU) in the Rest of Africa markets dropped by 14% to $8 per user across streaming platforms, while it rose by 3% to $289 in South Africa.
Despite a saturated pay-TV market globally, MultiChoice improved its liquidity position and achieved cost-savings in South Africa. The company also saw revenue growth from its gaming and sports betting product in Nigeria and its fintech arm in South Africa and other Sub-Saharan regions.
MultiChoice plans to continue investing in Showmax, focusing on original content and marketing to compete with other streaming services. The company is optimistic about Showmax’s profitability and is committed to enhancing its offerings.