South African pay television giant MultiChoice Group has reported a pre-tax loss of $38 million for its financial year ending March 31, 2024. The company attributes the loss to currency volatility, power challenges, and weakened consumer spending across its markets.
MultiChoice, which owns DStv and Showmax, faced a tough financial year due to adverse economic conditions in sub-Saharan Africa. “Volatile and weaker local currencies, power challenges in markets like South Africa, and a weak consumer environment due to rising inflation and high interest rates have created an extremely challenging environment for the group’s customers and operating segments,” MultiChoice stated.
Revenue fell by 5% to 56 billion rand ($2.9 billion) but grew by 3% when adjusted for currency fluctuations. The company is accelerating its cost-saving measures, targeting savings of 2 billion rand ($103 million) in the new financial year. This includes cutting capital expenditure and focusing on retaining existing customers amid a declining subscriber base.
MultiChoice’s active subscribers decreased by 9% to 15.68 million, largely due to a 13% drop in its Rest of Africa segment, where economic pressures forced many customers to prioritize essential needs over entertainment. In South Africa, the subscriber base fell by 5%, affected by ongoing power cuts and economic constraints.
The company plans to adapt to these challenges by streamlining operations and improving efficiency to better navigate the economic turbulence affecting its diverse markets.
