DStv’s parent company, MultiChoice, has experienced a worrying 2.8 million subscriber decline over the past two years, leading to marked decreases in both revenue and trading profit.
After reaching a peak of 17.3 million subscribers within the MultiChoice group on March 31, 2023, the number of active linear pay-TV subscribers has fallen to 14.5 million.
Revenue has similarly diminished, sliding from US$3.5 billion in the financial year 2023 to US$3 billion over the next two years.
MultiChoice has cited unprecedented operational challenges exacerbating its difficulties during the financial year 2025, affecting its overall performance.
In its recent annual report, the company identified several economic factors, including low GDP growth, rising inflation, high interest rates, and currency depreciation in critical markets like Nigeria, as significant challenges.
Despite South Africa being essential to its operations—contributing 65% of group revenues while representing 48.4% of the total active subscriber base at the end of the financial year—MultiChoice’s overall performance remains challenging.
In comparison, by the end of its 2024 financial year, South Africa accounted for 60% of revenues and 48.5% of the active subscriber base.
To elaborate on its declining performance, MultiChoice noted that South African consumers face considerable financial stress, citing a formal unemployment rate nearing 32% and economic growth projections below 1%.
The company remarked, “The benefits of lower interest rates and inflation will take time to translate into an increase in real disposable income for consumers.”
Furthermore, MultiChoice has observed broader industry shifts impacting pay-TV subscriptions in South Africa. There is a noticeable trend towards more affordable streaming services, mirroring global patterns.
DStv’s subscriber decline has been notable since 2016, coinciding with the rise of global streaming giants like Netflix. The latter announced its international launch in January 2016, which marked a turning point for the industry.
In addition to the streaming competition, MultiChoice highlighted that younger audiences are dedicating more time to social media platforms, while free alternatives to cable continue to evolve.
The rise of piracy is also concerning, particularly among younger demographics, as it further erodes MultiChoice’s subscriber base.
“The group’s active subscriber count has been affected by these factors and a shift in management’s focus towards customer quality instead of sheer growth,” MultiChoice stated.
This consumer focus is reflected in a 4% year-on-year increase in average revenue per user. Meanwhile, the overall number of linear TV subscribers dropped by 589,000 year over year, marking an 8% decline across its customer base.
Despite efforts to cut costs, MultiChoice reported a 9% decline in organic trading profit in the most recent financial year, while its trading margin fell from 14% to 8%.
The reported trading profit decreased by 49% to US$244 million, triggered by US$183 million in foreign exchange losses, lower subscriber numbers, and higher operational costs associated with Showmax.
Showmax, MultiChoice’s streaming platform, reported an increased trading loss of US$299 million for the financial year 2025, up from US$158 million the previous year.
A significant development in MultiChoice’s fiscal landscape was the sale of a 60% stake in its microinsurance subsidiary, NMS Insurance Services (NMSIS), to Sanlam. NMSIS, operational for over two decades, primarily offered DStv-related cover, including device, installation, funeral, subscription waiver, and debt waiver products.
Upon the deal’s approval, Sanlam reportedly paid US$73 million in cash upfront for NMSIS, along with potential performance incentives that could yield up to US$91 million.
MultiChoice noted in its 2025 annual report that the profit recognised from the sale was US$183 billion, which helped the company emerge from technical insolvency and return to profitability.
After reporting a loss of US$253 million in the previous financial year, this transaction was pivotal, as MultiChoice had liabilities exceeding its assets by the end of its 2024 financial year.
“The group returned to a positive equity position during the current year, despite a challenging operating environment,” the company remarked in its 2025 annual report.
Beyond the NMSIS transaction, cost-saving measures totalling US$225 million and the write-down of the Showmax put option liability of US$85 million contributed to its improved financial health.
Reduced foreign exchange losses on loans also strengthened its financial standing, with losses decreasing to US$61 million from US$281 million in FY24, thanks to a more stable foreign exchange environment.
For the 2025 financial year, MultiChoice reported an after-tax profit of US$108 million, signalling a potential turnaround amid ongoing challenges.
