MultiChoice’s latest financial results indicate that the company made an R6 billion profit despite many South Africans choosing to leave the content platform.
The results show that MultiChoice’s profit after tax was R5.99 billion, up 22.9% from R4.87 billion in 2023.
These figures were released under its Phuthuma Nathi black empowerment share scheme. This group holds a 25% stake in MultiChoice South Africa and has 80,000 shareholders.
The company also acknowledged that it has felt the impact of SA’s tough economic conditions.
“The South African economy continues to endure severe economic pressure, with consumers under financial distress due to the cost-of-living squeeze from high inflation and interest rates,” according to the statement.
The company also highlighted the impact load shedding had on its business.
“Consistent load-shedding through the financial year created an environment where customers without backup power were reluctant to subscribe to our service due to the uncertainty of whether they would be able to watch,” MultiChoice said.
More than 400,000 dump DStv
More than 400,000 people in SA have let go of their DStv subscriptions, according to the results.
The report showed that the pay channel’s subscribers had declined to 7.6 million in the year ended 2023/24, compared to 8 million in the previous financial year.
This follows a global trend where as more and more people move to more affordable uncapped internet solutions and other streaming services like Showmax, Netflix and Disney+.
“Active subscribers declined from 8.0 million to 7.6 million, while the 90-day active base reduced from 9.3 million to 8.6 million,” MultiChoice noted.
South Africa accounts for 48.5% of MultiChoice’s active subscribers and makes up around 60% of the company’s revenue.
Showmax losses
The results also noted that Showmax posted a trading loss of R2.6 billion.
Multichoice said that despite taking significant steps to control costs and protect cash flows, the increased cash flow investment in Showmax, notably through R1.4 billion in additional trading losses and R1.7bn in platform technology advances, and the impact of weaker currencies on profitability resulted in the group’s free cash flow declining by 79% to R589 million.
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