Worsening macroeconomic and consumer conditions in Africa have continued to have a negative impact on companies operating on the continent, with a prominent pay-TV firm, MultiChoice Group, losing about 8 per cent of its subscriber base in one year.
Details of its financial statements for the 2025 fiscal year ended March 31, 2025, showed that MultiChoice subscriber base went down to 14.5 million from 14.9 million in the previous year, driven by a weak consumer environment across markets as well as preference for alternatives.
However, despite these headwinds, the organisation delivered ZAR3.7 billion in cost savings, well ahead of the revised ZAR2.5 billion target set at the interim stage and almost double the ZAR1.9 billion saved in FY24.
The company said a disciplined approach to inflationary pricing, with increases of 5.7 per cent in South Africa and an average of 31 per cent in local currency in Rest of Africa, also helped to mitigate the impact of subscriber losses and supported 1 per cent year-on-year (YoY) organic revenue growth, influenced by pricing and new product growth.
On a reported basis, revenues declined by 9 per cent to ZAR50.8 billion, primarily due to an 11 per cent drop in subscription revenue, as well as the impact of currency headwinds, and the deconsolidation of the NMSIS insurance business from December 2024.
Trading profit increased by 20 per cent before accounting for the investment in Showmax, the impact of currency weakness and M&A activity.
After incorporating Showmax’s trading losses and ZAR5.2 billion in foreign currency revenue losses, and partially offset by the ZAR3.7 billion in cost savings, trading profit on a reported basis declined to ZAR4.0 billion.
In the period under review, MultiChoice performed well in its video entertainment segment, with new products and services delivering strong growth.
It grew its revenue from DStv Internet by 85 per cent, as KingMakers delivered a 76 per cent growth in constant currency and DStv Stream rose by 48 per cent, with Showmax active paying customers increasing by 44 per cent.
Importantly, the group returned to a positive equity position through a combination of cost savings, a stabilisation in currencies, and the accounting gain on the sale of 60 per cent of its shareholding in its insurance business (NMSIS) to Sanlam.
The chief executive of MultiChoice Group, Mr Calvo Mawela, while commenting on the results, said, “Our performance reflects both the challenges we’ve faced and the resilience of our teams.
“While macroeconomic pressures and currency volatility have weighed on our results, our disciplined execution, cost management and investment in new long-term growth opportunities position us well for the future.
“We remain focused on being Africa’s entertainment platform of choice. Our strategy is shaped by developments in our industry such as changes in technology which are driving shifts in consumer behaviour, as well as the impact of a rise in piracy, streaming services, and social media.”