Calvo Mawela, CEO of MultiChoice Group, acknowledged the adverse impact of inflation and currency instability on the company’s performance but expressed optimism about a financial turnaround.
Abuja, Nigeria – MultiChoice Nigeria has reported a significant drop in subscriber numbers, losing 243,000 customers across its DStv and GOtv platforms from April to September 2024.
The South African-owned pay-TV operator attributes the decline to Nigeria’s severe economic conditions, marked by an inflation rate exceeding 30%, driven by rising costs of essential items like food, electricity, and fuel.
The figures were disclosed in MultiChoice Group’s Interim Financial Results for the six-month period ending September 30, 2024, released on Tuesday. The report highlights how economic pressures have forced many Nigerian households to disconnect from the pay-TV service.
Previously, in its March 2024 financial report, MultiChoice recorded an 18% drop in subscribers in Nigeria, underlining ongoing financial challenges in one of its key markets. The subscriber losses extend beyond Nigeria: across the Rest of Africa operations, MultiChoice reported a total decline of 566,000 subscribers over the past six months. Zambia and Nigeria were the hardest-hit markets, with Zambia losing 298,000 subscribers due to widespread power outages caused by a drought that has left some regions without electricity for up to 23 hours a day.
Calvo Mawela, CEO of MultiChoice Group, acknowledged the adverse impact of inflation and currency instability on the company’s performance but expressed optimism about a financial turnaround. “We are making good progress in addressing the technical insolvency that resulted from non-cash accounting entries at the end of the last financial year,” he said, adding that the group’s net equity position is expected to recover by November 2024.
The company also faces growing competition from streaming services and changing consumer viewing habits, which continue to pressure its traditional pay-TV model. To respond to this shift, MultiChoice has invested ZAR1.6 billion in its streaming service, Showmax, which has shown impressive growth of 50% year-over-year.
Commenting on this strategic investment, Mawela stated, “Showmax strategically positions the business to actively participate in the streaming revolution as it gains momentum across Africa.”
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