Despite facing challenges, MultiChoice Group has released its operational performance for the fiscal year ending March 2024 (FY24). The report reveals a 9% decrease in total active subscribers, with a 13% decline in Nigeria, Angola, Kenya, and Zambia. However, South Africa, with its ‘strong focus on retention initiatives,’ saw only a 5% decline, showcasing the Group’s resilience in the face of adversity.
The decline was attributed to the depreciation of local currencies in the “Rest of Africa” markets, which reduced the Group’s USD revenues by 32%.
The Group’s organic revenue increased by 3%, but reported revenue fell 5% to US$3.1 billion. Similarly, subscription revenue increased by 2% organically but declined by 7%.
Mawela, in a strategic move, has projected that its streaming service, Showmax, will generate $1 billion in revenue within five years. This is further bolstered by Showmax’s recent operational report, highlighting a significant 22% organic revenue growth to US$54 million despite incurring some trading losses. This growth in Showmax’s revenue is a beacon of hope for MultiChoice’s financial outlook.
Canal+, a key player in the industry, has been on a share acquisition spree in MultiChoice and is in talks to buy the company out for up to R35 billion. Importantly, Canal+ has recently stated that it has no plans to change MultiChoice’s brands after the takeover, underlining its recognition of MultiChoice’s high brand value and fostering a sense of stability among stakeholders.
According to reports, Peter Takaendesa of Mergence Investment Managers believes MultiChoice’s new revenue streams are insufficient to offset the challenges facing its traditional pay-TV business, which is experiencing structural and cyclical pressures.
However, he stated that Canal+’s offer to acquire MultiChoice shares for US$6.93 per share has become the primary driver of the share price, which is a positive development for shareholders.
According to the report, South African pay-TV operations have faced significant challenges, exacerbated by the start-up losses incurred to fund Showmax.
