MultiChoice Group, known for its Pay TV services including DSTV, had an account balance of N31.6 billion with Heritage Bank.
MultiChoice Group reported a solid financial performance for the year ending March 31, 2024. The company successfully launched new ventures like Showmax, a video streaming service, and SuperSportBet, a sports betting platform, alongside their existing offerings.
However, MultiChoice’s Nigerian operations faced some issues. The company saw an 18% decline in active DStv subscribers and a decrease in its overall revenue contribution from Nigeria.
This decline is likely due to a combination of factors, including economic challenges in Nigeria, leading to inflation exceeding 30%, and two price hikes implemented by MultiChoice during the year.
The price increases led to customer dissatisfaction and legal challenges, with the Competition and Consumer Protection Tribunal (CCPT) imposing a fine and ordering a one-month free subscription for Nigerian customers.
Further complicating matters is the liquidation of Heritage Bank, where MultiChoice held a pre-liquidation balance of N33.7 billion (ZAR 488 million).
This amount exceeds the N5 million maximum payout guaranteed by the Nigeria Deposit Insurance Corporation (NDIC). MultiChoice is now engaged with the NDIC to recover a “reasonable outcome” on their deposit.
Recovering the full amount of this revenue depends on the successful sale of the bank’s assets by the NDIC. MultiChoice’s financial performance in Nigeria might also be impacted by the subscriber decline and ongoing legal disputes.
Despite these challenges, MultiChoice’s overall financial health appears good. The success of its new ventures and its service expansion offerings makes the company ready for long-term growth.
