Africa’s biggest pay television Company MultiChoice Group widened its loss to ZAR 4.148 billion (Sh34.8 billion) in the year ended March 2024, attributing it to foreign exchange losses in Kenya, Nigeria, Zambia, and Angola, from a loss of ZAR 2.9 billion (Sh24.3 billion) in the year before.
The company reported an increase in impairment losses, administration expenses and taxes further chipping into the trading loss.
“Currency depreciation against the US dollar in several markets impacted reported trading profit by ZAR4.3 billion (Sh36.04 billion) including Kenya; ZAR 158 million loss (Sh1.3 billion)when the shilling declined 17 percent, Nigeria; ZAR3.3 billion loss (Sh27.6 billion) on a 50 percent decline in official naira,” said Multichoice.
In the period under review, Angola’s Kwanza fell 41 percent resulting in a loss of ZAR335 million (Sh2.8 billion) and Zambia’s Kwacha declined 17 percent leading to a loss of ZAR305 million (Sh2.6 billion). In Kenya, the company increased prices on two rounds, in April and August to counter the FX and growth pressure.
It also launched GOtv supa plus to drive upgrades amid exits by customers scorched by high pricing on adjustments to the dollar gains. The Kenya shilling took a major hit against the US Dollar across 2023, touching a record low of 160.75 at the end of January this year.
Inflationary challenges in some of its markets outside South Africa saw users discontinue their subscriptions. The “rest of Africa” business, which excludes South Africa, saw a 13 percent fall in subscriber numbers year on year, with the worst performances coming from its Nigeria, Angola, and Zambia operations. The Multinational blamed the tough consumer environment and foreign exchange impact on the nine percent decline in active subscriber numbers.
Multichoice streaming platform, Showmax posted higher revenue but also increased losses for its latest financial year ended in March amid investments related to its recent relaunch that saw additional entertainment packages and enhanced viewer experience.
“Showmax recorded strong growth post relaunch compensated for termination of higher average revenue per user (ARPU) showmax pro services.”
MultiChoice has over 23.5 million customers in 50 markets across sub-Saharan Africa and is in the process of being acquired by France’s Groupe Canal+.
Besides its DStv, Showmax, SuperSport, and MNet media companies, MultiChoice’s diversified offering includes medical and security (Namola), cybersecurity (Irdeto), and sports betting (Betking).
