MultiChoice Group reports a total annual loss of $217 million on revenues of $3 billion, quoting macroeconomic challenges that have prompted shareholder consideration of potential relief through Canal+ ownership.
Devaluation and inflation in essential markets such as Nigeria and Ghana reduced consumer purchasing power, decreasing active subscribers. In Nigeria, active subscribers dropped by 1.2 million to 8.1 million, decreasing the country’s revenue contribution to the Rest of Africa segment from 44% to 35%.
In its executive summary announcing the results, MultiChoice stated, “Mass-market customers in countries like Nigeria had to prioritize necessities over entertainment.” FY24 marked the most challenging macroeconomic conditions for the Rest of African business since 2016.
In addition to the macroeconomic challenges, the South African company experienced a slight 5% decrease in active customers, ending the year with 7.6 million subscribers. This decline was further compounded by ongoing challenges from frequent power outages throughout FY24, which prevented potential subscribers without reliable backup power solutions from subscribing to the service.
Across all markets, premium customers, including those on the Premium and Compact Plus packages, decreased 8%. In comparison, the mass market saw a 2% decline despite implementing cost-saving measures such as reducing decoder subsidies and accomplishing savings of $103 million.
Additionally, the company incurred remittance losses totalling $59 million from Nigeria, attributed to volatility in the foreign exchange market.
