South Africa’s pay-TV giant MultiChoice is struggling. Squeezed by inflation, subscriber losses, and streaming competition, the company swung to a full-year loss for the year ending March 31.
By the numbers:
- Loss: R800 million headline loss vs R1.3 billion profit last year
- Revenue: Fell 9% to R50.8 billion (missed analyst forecast of R52.9 billion)
- Subscribers: Lost 1.2 million broadcast subscribers, now at 14.5 million
- Showmax losses: Increased by R2.3 billion
- Forex hit: R5.2 billion in foreign exchange revenue losses
Between the lines:
- Consumers are ditching DStv amid rising living costs.
- The company was also hit hard by currency depreciation and structural shifts in video entertainment (piracy, streaming, and social media).
- It sold off 60% of its insurance business, further denting revenue.
The bright spot
Showmax is growing fast. Despite heavy losses, active paying users jumped 44%, gaining ground against global players like Netflix.
MultiChoice is betting on local content (82 original releases) and exclusive NBCUniversal shows to power growth.
The big picture
MultiChoice is currently a takeover target for France’s Canal+, but it’s fighting headwinds across the board: a shrinking core business, a streaming arm that’s still bleeding cash, and macroeconomic chaos across sub-Saharan Africa.
What to watch
Whether Showmax’s growth and Canal+’s interest can offset MultiChoice’s broader decline — or if more layoffs, price hikes, or restructuring are on the horizon.
