MultiChoice Reports 1.2 Million Subscriber Loss And 50% Profit Drop Citing Economic Headwinds

Multichoice Group pointed out a sharp drop in its subscriber base and its profits for the year ended on March 31, 2025, citing winds, fierce streaming competition and strategic investments in its on -demand video service, Showmax.

According to its financial results published on Wednesday, active subscribers dropped from 1.2 million to 14.4 million, a drop of 8% in annual shift, the loss also divided between South Africa and the rest of Africa. This marks a cumulative loss of 2.8 million subscribers in the past two years, largely brought by low consumption expenditure on the main African markets.

Fy25 has seen continuous macroeconomic challenges for the group’s rest segment. Local currency depreciation Against the USD on several markets (notably Nigeria, Angola, Ghana and Malawi), caused a weighted average of 26% The loss of income on a declared basis, which in turn led to a negative turnover of 5.1 billion Zar and an impact on the negotiations of negotiation Zar3.1bn this year.

Inflation on key markets has remained high (around 20% on average weighted, greater than 30% in Nigeria and Angola) And caused pressure on customer expenses. Subscribers’ activity was still affected by electricity shortages through Zambia, Zimbabwe and Malawi, power and fuel shortages in progress in Nigeria and civil disorders in Mozambique.

Piracy also remains a continuous challenge for the group through its footprint. Following the above negotiation conditions, active subscribers decreased 7% in annual shift, Nigeria representing more than half of this decline. At the end of the year, customers totaled 7.5 million people similar to what was reported at the temporary stadium.

Inflationist prices of 31% on average were transmitted through the footprint, which allowed the segment to provide growth in organic income of 3% in annual shift. The integration of the impact of the weakness of the currencies led to reported income reflecting a 23% drop in annual shift.

Despite deepening losses, Multichoice continues to support its ambitious investment in Showmax, having paid $ 90 million (1.6 billion rands) in the platform. Although Showmax has declared a loss of negotiation of $ 146 million (2.6 billion rands) for the 201024 financial year, its subscriber base increased by 50% in annual sliding, with an increase of 44% of active users.

It has been a little over a year since the group has revived Showmax, targeting 44 markets through sub -Saharan Africa With the ambition to become the main streaming platform on the continent. As a start-up, Showmax has concentrated On improving its range of content, declining distribution partnerships, expanding integration of payment channels and Refine its marketing strategy.

Although the segment has delayed its initial growth goals, it still provided a healthy growth of 44% of active remuneration subscribers and has acquired market share on the regional streaming market. It remains clear that streaming represents the future of video entertainment. Although the current levels of the penetration of broadband and SVOD across Africa are not yet at levels comparable to the rest of the world, they suggest
A significant long -term advantage. However, data prices should evolve more for this market segment to reach its full potential.

To counter the losses, Multichoice has intensified its cost reduction efforts, reaching 208.8 million dollars (3.7 billion rands) of savings – almost double that of the previous year and exceeding projections of more than $ 67 million. However, these savings have reached a cost for customer value proposals, which has still set its subscriber base.

Multichoice has attributed its drop in performance to “unprecedented opposite winds”, in particular macroeconomic instability, depreciation of money through sub -Saharan Africa, hacking and intense competition from world streaming giants like Netflix.

The group had warned investors of a planned diver of 50% in the negotiation profits for the 201025 financial year. It also recognized the growing impact of structural changes in the video entertainment industry – including the rise in piracy, streaming and social media alternatives.