MultiChoice’s Latest Financial Report Reveals Sharp Revenue Decline

South African media giant MultiChoice Group Limited released its 1H FY2025 report — covering the six-month period from April to September 2024 — and the numbers tell a story of mounting challenges and eroding profitability.

Despite optimistic projections for a return to positive net equity by November 2024 and solid performance from its streaming platform Showmax — which grew its subscriber base by over 50% year-on-year — the Group’s core financials reflect a worsening outlook.

Group revenue declined by 10.2%, falling from 28 billion rands ($1.56 billion) in 1H FY2024 to 25.4 billion rands ($1.45 billion). Subscription revenue, which remains the backbone of MultiChoice’s earnings, also dropped — from 23.3 billion rands ($1.29 billion) to 20.3 billion rands ($1.11 billion) — a 13% decrease in nominal terms.

Key drivers of the decline include over 2.2 million net subscriber losses in key markets, currency crises, and economic pressures across the continent.

Nigeria at the Center of the Storm

The largest drag on performance came from Nigeria, which accounted for about 63% of subscriber erosion. The Nigerian naira also depreciated by 58% year-on-year, leading to 2.1 billion rands ($117 million) in FX losses — the largest single-country impact on Group trading profit.

Additionally, a 31% drop in advertising revenue was recorded, as several major international brands exited Nigeria. The report also cites “Nigerian inflation (about 33%), fuel scarcity, mass market weakness, piracy, and insufficient power supply” as major contributors to this decline.

The company noted it was able to remit only $133 million from Nigeria at an average rate of ₦1,589/$, compared to $184 million at ₦1,044/$ in the prior period — highlighting worsening FX remittance conditions.

MultiChoice has strategic countermeasures in place, some of which are already in motion: price increases to offset inflation, a raised cost-savings target for FY2025, and strengthened Irdeto anti-piracy technology. Content tiers have also been restructured in a bid to drive ARPU and recover subscribers — such as adding “UEFA Champions League matches to GOtv.”

MultiChoice in Transition

These developments unfold amid the looming Canal+ takeover. The French broadcaster, a subsidiary of Vivendi, recently cleared a major hurdle when the South African Competition Commission recommended approval of its acquisition of MultiChoice — subject to specific conditions.

With over 41% ownership already secured, Canal+ is poised to fully acquire the African media group, signaling a transformative new chapter in MultiChoice’s future.

For a better insight, read the full report here.