Despite a tough macroeconomic environment, MultiChoice Group has successfully navigated challenges by implementing focused strategic interventions.
The Group achieved ₦960 billion ($3.7 billion) in cost savings—far surpassing its interim target of ₦650 billion ($2.5 billion) and nearly doubling the ₦490 billion ($1.9 billion) saved in the previous fiscal year.
A disciplined approach to pricing helped offset subscriber losses, with inflationary price adjustments averaging 5.7% in South Africa and 31% in other African markets.
These efforts contributed to a 1% year-on-year organic revenue growth.
“Our performance showcases both the hurdles we’ve overcome and the resilience of our teams. While macroeconomic pressures and currency fluctuations have impacted results, our strategic execution, cost management, and investments in long-term growth put us in a strong position,” says Calvo Mawela, CEO of MultiChoice Group.
Adapting to industry shifts As the entertainment landscape continues to evolve, MultiChoice Group has responded with innovative solutions.
New products like DStv Internet recorded an 85% increase in revenue, while KingMakers grew by 76% and DStv Stream by 48%. Showmax, the Group’s streaming service, saw active paying customers rise by 44% year-on-year.
Notably, the Group returned to a positive equity position, supported by cost savings, currency stabilization, and the sale of 60% of its insurance business (NMSIS) to Sanlam.
Financial Performance Overview
- Subscriber Base: The decline in active linear pay-TV subscribers has slowed, with the base now at 14.5 million—a drop of 8% compared to the previous year’s 11% decline.
- Revenues: Organic revenues rose by 1% year-on-year, primarily driven by pricing strategies and product expansion. However, reported revenues declined by 9% to ₦13.2 trillion ($50.8 billion) due to a subscription revenue dip and foreign exchange pressures.
- Trading Profit: Before adjustments, trading profit grew by 20% year-on-year. After factoring in Showmax’s trading losses, currency depreciation, and mergers and acquisitions, trading profit declined to ₦1.04 trillion ($4.0 billion).
- Adjusted Core Headline Earnings: The Group reported a loss of ₦208 billion ($0.8 billion), mainly due to reduced trading profits and hedging losses.
- Cash Flow & Liquidity: Free cash outflow stood at ₦130 billion ($0.5 billion), reflecting lower profitability and higher lease repayments. The Group closed the year with ₦1.3 trillion ($5.1 billion) in cash reserves and access to ₦790 billion ($3.0 billion) in borrowing facilities.
Operational Highlights
- Content Leadership: MultiChoice remains the leading producer of African original content, with its library expanding to 91,470 hours. Shows like Big Brother Mzansi and Big Brother Naija continue to attract strong viewership.
- Sports Excellence: SuperSport broadcast 47,839 hours of live sports, including major tournaments like the Paris 2024 Olympic Games and EURO 2024.
- School Sports Innovation: SuperSport Schools experienced 46% growth in registered users, reaching 1.2 million.
Business Segment Updates
- MultiChoice Nigeria focused on customer retention, partnerships with Capitec, MTN, and PEP, and improved customer experience.
- MultiChoice Africa implemented inflation-based price increases and piloted weekly subscriptions in Uganda for affordability.
- Showmax continued its expansion, despite slower subscriber growth, delivering a 44% increase in paying users.
- Irdeto grew revenue by 8%, strengthening security solutions across multiple sectors.
- KingMakers saw strong growth in online sports betting, particularly BetKing Nigeria, while SuperSportBet gained traction in South Africa.
- Moment, MultiChoice’s fintech solution, processed $635 million in transactions, representing a sevenfold increase year-on-year.
Future Outlook MultiChoice Group remains committed to a sustainable long-term strategy. In the coming year, it aims to:
- Stabilize revenue in video businesses while driving growth in entertainment, fintech, and insurance.
- Optimize operations to protect profitability and cash flows.
- Advance partnerships with Canal+ to unlock long-term strategic benefits.
A new ₦520 billion ($2.0 billion) cost-saving target has been set for FY26, aiming to reshape the business for shifting market conditions.
With these measures, MultiChoice Nigeria aims to strengthen profitability, stabilize operations across Africa, and refine Showmax’s performance.
The Group said it is determined to remain Africa’s premier entertainment provider—one that evolves with consumer habits and industry trends.
