MultiChoice CEO Calvo Mawela recently shared insights on the company’s progress, particularly in enhancing its financial standing and making Showmax profitable. This comes in light of the company’s consolidated interim financial report for the period ending September 30, 2024.
The last six months posed significant challenges for the group, marked by a decline in revenue, lower operating profits, and an increased loss. Subscriber numbers dropped from 16.7 million to 14.9 million, with a 5% decrease in South Africa and a 15% decline across the Rest of Africa.
The company attributed these setbacks to unprecedented foreign exchange volatility, alongside ongoing macroeconomic difficulties that impacted customer growth and overall performance. Nevertheless, Mawela expressed optimism about MultiChoice’s future, highlighting the company’s ability to maintain strategic momentum despite these challenges.
MultiChoice focuses on a disciplined approach to investments and cost management to bolster growth, which has already yielded US$71 million in permanent savings. The company is on target to achieve a yearly savings of US$136 million.
One noteworthy development is Showmax, which is pivotal to the company’s future. The platform experienced a remarkable 50% growth in its customer base year-over-year and aims to continue this momentum with plans to enhance its content lineup and strengthen distribution partnerships. This year’s focus includes improving payment channel integrations and refining the market strategy.
Irdeto, a subsidiary of MultiChoice specializing in digital platform cybersecurity, has also recorded positive growth after securing a significant customer in Asia and expanding its managed services in Australasia. Meanwhile, MultiChoice’s fintech initiative, Moment, is now operational in 40 African countries. It has boasted rapid growth since its launch last year, with total payment volumes reaching US$240 million.
Other divisions, such as DStv Steam, DStv Internet, DStv Insurance, and KingMakers, have similarly shown robust revenue growth. In a significant announcement, Mawela noted that MultiChoice is on track to improve its balance sheet and resolve its negative equity issue by the end of November. He emphasized the company’s strong liquidity, with over R10 billion available.
Mawela underscored the need for MultiChoice to adapt to the global pay-TV landscape, which is increasingly influenced by streaming services, social media, and changing consumer behaviours. He reiterated Showmax’s strong subscriber growth, which positions the company favourably within the streaming market.
To facilitate growth, the group has increased its investment in Showmax by an additional US$87 million during the interim period, demonstrating a commitment to the business’s future. Mawela highlighted several strategic moves made in recent years, including investments in the sports betting platform KingMakers and efforts to restore profitability in the Rest of Africa.
“Our focus extends beyond just cost efficiency,” Mawela stated. “We are dedicated to growing the business and are excited about the significant medium-to-long-term opportunities in video entertainment and our adjacent new business ventures.”
