Revenue and Subscriber Numbers Fall for MultiChoice in Fiscal Year March 2024
What’s this about?
- MultiChoice Group experienced a 9% decline in total active subscribers for FY24, with significant drops in key markets due to currency depreciation, but managed to increase revenue organically by 3%.
- Showmax, MultiChoice’s streaming platform, saw a 22% organic revenue growth despite losses, while their fintech venture Moment achieved significant milestones and funding, raising its valuation to $82 million.
- Looking ahead, MultiChoice plans to focus on scaling its core segments, including Showmax, Moment, and SuperSportBet, while aiming for enhanced business efficiency and cost optimization.
Zoom in…
MultiChoice Group, a South African broadcasting media company, has released its operational performance for the fiscal year ending March 2024 (FY24), which shows a 9% decline in total active subscribers.
The Group reported a 13% drop in subscribers in Nigeria, Angola, Kenya, and Zambia. The depreciation of local currencies in these markets, including Kenya, had a 32% impact on the Group’s USD revenues. South Africa, on the other hand, saw only a 5% decline due to a “strong focus on retention initiatives.”
While its subscriber base decreased, the Group’s revenue increased by 3% organically. However, due to weaker local currencies and consumer demand, reported Group revenue fell 5% to ZAR 56.0 billion ($3.04 billion).
Additionally, revenue from subscriptions increased by 2% organically but decreased by 7%, however, the Group attributed the decline to the weaker naira.
Meanwhile, MultiChoice’s revamped and relaunched Showmax, a streaming platform that overtook Netflix in 2023, achieved a 22% organic revenue growth to ZAR 1.0 billion ($54.475 million), despite incurring some trading losses.
MultiChoice also emphasised the role of Moment, its fintech business, in the Showmax relaunch, which addressed payment gaps. Moment, founded in FY23 and officially launched in FY24, began processing MultiChoice’s DStv payments in January 2024, reaching a milestone of $85 million by early March 2024. Moment has raised an additional $22 million in funding, bringing its valuation to $82 million, with MultiChoice owning a 26% stake.
What they’re saying…
Concerns may arise regarding the future of MultiChoice brands after the anticipated acquisition. However, Maxime Saada, the CEO of Canal+, a French media company that has steadily increased its stake in the South African pay-TV to over 40%, stated that there are no plans to change MultiChoice’s brands due to their high value.
Meanwhile, Canal+ will have to throw in over R30 billion to buy the remaining MultiChoice shares.
Calvo Mawela, CEO of MultiChoice Group, stated that the payTV’s three core segments – video entertainment, interactive entertainment, and fintech – are now fully operational.
In FY24, the Group produced over 6,500 hours of local content, for a total of 84,000 hours, representing a 12% increase year on year. Additionally, SuperSport broadcast 34,490 live events this year. The Group also opened three new proprietary channels in Ethiopia, Uganda, and Mozambique.
Bottomline
Looking forward, MultiChoice plans to focus on scaling Showmax, Moment, SuperSportBet, and driving growth in insurance (NMSIS), DStv Internet, and DStv Stream. The company also aims to enhance business efficiency and cost optimisation, with an increased cost savings target of ZAR 2 billion.
Source: techpoint.africa
